The Joint Bi-level Image Experts Group (JBIG), an international study group affiliated with ISO/lEC and ITU-T, is in the process of drafting a new standard for lossy and lossless compression of bi-level images. The new standard, informally referred to as JBIG2, will support model-based coding for text and halftones to permit compression ratios up to three times those of existing standards for lossless compression. JBIG2 will also permit lossy preprocessing without specifying how it is to be done. In this case compression ratios up to eight times those of existing standards may be obtained with imperceptible loss of quality. It is expected that JBIG2 will become an International Standard by 2000.