—Compound images are a combination of text, graphics and natural image. They present strong anisotropic features, especially on the text and graphics parts. These anisotropic features often render conventional compression inefficient. Thus, this paper proposes a novel coding scheme from the H.264 intraframe coding. In the scheme, two new intramodes are developed to better exploit spatial correlation in compound images. The first is the residual scalar quantization (RSQ) mode, where intrapredicted residues are directly quantized and coded without transform. The second is the base colors and index map (BCIM) mode that can be viewed as an adaptive color quantization. In this mode, an image block is represented by several representative colors, referred to as base colors, and an index map to compress. Every block selects its coding mode from two new modes and the previous intramodes in H.264 by rate-distortion optimization (RDO). Experimental results show that the proposed scheme impro...