This document discusses image compression algorithms using the Lapped Orthogonal Transform (LOT) and Discrete Cosine Transform (DCT) under the JPEG standard. It begins with an introduction to image compression and classification of compression schemes. It then describes LOT and DCT in detail and proposes a hybrid algorithm using both transforms simultaneously. The algorithm is tested on an image and achieves a peak signal-to-noise ratio of 36.76 decibels at a bit rate of 0.6 bits per pixel, providing higher quality than DCT alone. The document concludes the hybrid approach offers better energy compaction and quality at low bit rates than DCT.