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In this paper, a low memory strip-based image compression for color images using the set-partitioning in hierarchical trees (SPIHT) coding is presented. The proposed coding scheme applies a lower scale of discrete wavelet decomposition and uses a new spatial orientation tree structure to achieve a low memory strip-based coding implementation. It also incorporates a modified SPIHT algorithm which uses a degree-0 to degree-2 zerotree coding methodology to increase the compression efficiency. The main advantage of the proposed work is the significant reduction in both the memory requirements as well as the complexity of the image coder for practical software and hardware implementation. Simulation results on color images also show that the proposed coding scheme gives a better compression performance compared to the traditional SPIHT coding at most bit-rates.