A luminance picture signal is applied to a segmentation device (2) and a modal filter (3) to produce a region signal. Both the picture signal and the region signal are applied to a subtractor circuit (5) to produce a texture signal which is encoded in encoder (7). The region signal is applied to an edge mapping device (9) to produce a region list signal and an edge map of the original image. The edge map is subjected in an element prediction device (10) to a template to produce a prediction from a look-up table in a memory (12) regarding the value of an element in a fixed position adjacent the template. If the prediction is correct then a prediction error signal indicates no error whilst if an error exists either the prediction error signal conveys the actual value or where it may be found in a look-up table. The prediction error signal is encoded in a second encoder (14). <IMAGE>
