JPEG 2000 is a new image coding system that uses state-of-the-art compression techniques based on wavelet technology. This is the successor of the well-known traditional JPEG written by the ISO group Joint Photographic Experts Group. Contrary to the technology JPEG which used DCT functions, JPEG2000 technology is based on an mathematical algorithm called wavelets to compress image that provides high compression with image quality superior to all existing standard encoding techniques even at low bit rates.
That's the reason why JPEG2000 has a number of advantages over the JPEG Format.
Standard JPEG file
To correctly open our JPEG 2000 images, you will need the Adobe Photoshop JPEG2000 plug-in or Adobe Photoshop 8.
We have choosen this extended JPEG2000 file format (.jpf) because Photoshop "path" could also be saved.
With our Pro JPEG2000 files, you will get then an alpha channel and a path for a fast and easy image-editing solution.
Photoshop does not include the JPEG 2000 plug-in by default. You must install it manually. To save files in the JPEG 2000 format, you must get the optional JPEG 2000 plug in and install it in this location: Adobe Photoshop CS3/Plug Ins/File Formats. This plug in is available from the Photoshop CS3 installation CD in Goodies/Optional Plug Ins/File Formats. Extended JPEG 2000 (JPF) format provides an expanded set of options compared to the standard JPEG 2000 (JP2) format. However, you can make files JP2 compatible by selecting the appropriate option in the JPEG 2000 dialog box.
Source: Adobe® Help Ressource Center
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