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This paper describes a progressive image transmission (PIT) scheme using a variable block size coding technique in conjunction with a variety of quantization schemes in the transform domain. The proposed scheme uses a region growing technique to partition the images so that regions of different sizes can be addressed using a small amount of side information. This segmentation divides the image into five different regions that vary in size based on the details within the image. High detail blocks are classified into four different categories based on the energy distribution followed by vector quantization (VQ), and low-detail blocks are encoded with scalar quantization (SQ). Progressive refinement is achieved by proper masking of the information in the transform domain. Simulation results show that the reconstructed images preserve fine and pleasant qualities based on both subjective and mean square error criteria. Also, the receiver reconstructs more details in each stage so that the observer can recognize the image quickly