I met Kevin Hughes yesterday and was checking out his excellent Kev's News, now in my blogroll. Kevin is one of only 6 people in the WWW hall of fame, created the idea of image maps among other things, and is an amazing guy.
I saw this article in Kev's News which backs up Allume's claim that they can losslessly compress JPEG files by up to 30%. This is amazing, dramatic, and has far-reaching consequences. I hope it is independently verified and turns out not to be a bogus claim, always a possibility with things you read on the web, though this looks legit to me.
It also points out that the JPEG compression algorithm could have been 25%-30% better than it is. Think of all those billions of bytes of wasted space all over the world! Think of how many more pictures you could have fit on your 256MB flash card! I think we should remove the "E" and call it JPG from now on (JPEG is an acronym for Joint Project Expert's Group) and give the "E" to Allume with great ceremony.
Allume, please combine your algorithm with JPEG and license it to camera manufacturers as soon as you can!