This document summarizes a technique called CADU (collaborative adaptive down-sampling and upconversion) to improve image compression at low bit rates. The technique adaptively decreases high frequency information by directionally prefiltering an image before uniform downsampling. This allows the downsampled image to be conventionally compressed while avoiding aliasing artifacts. At the decoder, the low-resolution image is decompressed and then upconverted to the original resolution using constrained least squares restoration with an autoregressive model. Experimental results show CADU outperforms JPEG2000 in PSNR and visual quality at low to medium bit rates. The technique suggests oversampling wastes resources and could hurt quality given tight bit budgets.