International Telemetering Conference Proceedings / October 25-28, 1999 / Riviera Hotel and Convention Center, Las Vegas, Nevada / A high performance lossy data compression technique is currently being developed for space science applications under the requirement of high-speed push-broom scanning. The technique is also error-resilient in that error propagation is contained within a few scan lines. The algorithm is based on block-transform combined with bit-plane encoding; this combination results in an embedded bit string with exactly the desirable compression rate. The lossy coder is described. The compression scheme performs well on a suite of test images typical of images from spacecraft instruments. Hardware implementations are in development; a functional chip set is expected by the end of 2000.