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A self-organization neural network architecture is used to implement vector quantization for image compression. A modified self-organization algorithm, which is based on the frequency-sensitive cost function and centroid learning rule, is utilized to construct the codebooks. Performances of this frequency-sensitive self-organization network and a conventional algorithm for vector quantization are compared. The proposed method is quite efficient and can achieve near-optimal results. Good adaptivity for different statistics of source data can also be achieved