This paper reports abstracts of the two methods already proposed separately, the information embedding method into error-diffused images and the block coding method of error-diffused images, and reports the results of the evaluation tests which combined the two proposed methods. Using the Cyan component of the test image N1, the evaluation test showed that the value of 64 is best for the tolerance, which is the tolerance value of the threshold value for binarizing an image, from the view points of information embedding size, compression ratio, and image quality. Therefore, degradation of image quality can be kept small for the variable sizes of information embedded up to the maximum size, and the compression ratio by the Jarvice error-diffusion method can be improved. For example, when the Floyd error-diffusion method is used, the effective experimental results show that the compression ratio is 46.8% and the MAE is 4.6 without information embedded, but the compression ratio is improved to 44.1% and the MAE degrades 1.4 to 6.0 with information of the maximum size which corresponds to 58% of the total pixels embedded.
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