Various image coding schemes have been studied for digital transmission of videophone signals. The Hadamard transform, which is now studied for the transmission of pictures such as those from satellites, has been considered too complicated for public use, though the characteristics such as the ratio of bit-rate reduction are more desirable than those of differential pulse-code modulation (DPCM). We have found a very simple scheme of the transform, where digitized videophone signals are transformed to Hadamard components all digitally just by

digital adders and some shift registers for 2
nth-order transform. For example, three adders are necessary for eighth-order transform. It is extendable to two-dimensional transform with ease. We have made an experimental model running in real time. Experiments and theoretical calculation have shown that 3 bits/sample are required for good picture quality in the case of two-dimensional

th transform and 0.5 bits more for one-dimensional eighthorder transform.