This document describes a novel mechanism for low bit-rate image compression. It proposes an adaptive downsampling and upconversion technique that uses directional low-pass pre-filtering for downsampling images. The decoder then decompresses and upconverts the low-resolution images back to their original resolution. Experiments show this technique outperforms JPEG 2000, providing higher visual quality at lower bit rates. The proposed system exhibits superior compression performance compared to JPEG, especially at low bit rates, as shown by its higher PSNR values in tests on various images.