The aim of this thesis is to investigate the effects of JPEG2000 compression on texture feature extraction from digitized mammograms. A partially automated computer aided diagnosis system is designed, implemented, and tested for this analysis. The system is tested on a database of 60 digital mammograms obtained from the Digital Database for Screening Mammography at the University of South Florida. Using JPEG2000, the mammograms are compressed at 20 different compression ratios ranging from 17:1 to 10,000:1. Two approaches to texture feature extraction are investigated: (i) region of interest (ROI), which is a bounding box around the segmented mass and (ii) rubber band straightening transform (RBST), which is a band of pixels around the segmented mass transformed to a rectangular strip. The gray tone spatial dependent matrices are computed from the ROI and the RBST for the original uncompressed mammograms as well as each group of compressed images. Feature selection and optimization is achieved via stepwise linear discriminant analysis. The efficacy of the features is measured using receiver operator characteristic (ROC) curves. The efficacy of the texture features obtained from the original mammograms is compared to those of the compressed mammograms. Overall, the texture feature efficacy was preserved even for relatively high compression ratios. For example, the area under the ROC curve was greater than 0.99 for compression ratios as high as 5000:1, when the RBST method was utilized. Overall, the JPEG2000 compression distorted the RBST texture features lesser than the ROI texture features.