Real-time three-dimensional echocardiography has been introduced to provide improved quantification and description of cardiac function. Data compression is desired to allow efficient storage and improve data transmission. Previous work has suggested improved results utilizing wavelet transforms in the compression of medical data including 2D echocardiogram. Set partitioning in hierarchical trees (SPIHT) was extended to compress volumetric echocardiographic data by modifying the algorithm based on the three-dimensional wavelet packet transform. A compression ratio of at least 40:1 resulted in preserved image quality.