A new very low bitrate video compress algorithm based on Vector Quantization is presented in this paper.The proposed approach involves quadtree segmentation

classified Vector Quantization and variable size motion compensation simultaneously.Simulation result shows that this algorithm achieves good subjective image quality while gets high compression ratio.Considering the simple structure of the decoder

here we prsent an encoder architecture which is suitable for VLSI implementation.In this architecture

the motion estimation can share the same Process Array with Vector Quantization in order to reduce the chip area.