In multimedia communication and data storage, compression of data is essential to speed up the transmission rate, minimize the use of channel bandwidth, and minimize storage space. The drawback of compression is that compressed data are more vulnerable to channel noise during transmission. In this work, error concealment methodology is proposed that has the ability of both error detection and concealment, and thus guarantees minimum use of channel bandwidth. The methodology requires transmission of edge information of the original image along with JPEG2000 compressed image. At the receiver, the edge information of received wavelet coefficients is computed and compared with the received edge information of the original image to determine the corrupted coefficients. Three methods of concealment, each including a filter, are investigated to handle the corrupted regions/coefficients. The simulation results conducted on test images for different values of bit error rate are presented to demonstrate the performance of the proposed approach. The objective quality measure such as peak-signal-to-noise ratio (PSNR), root-mean-square error (rms) and subjective quality measure are used to evaluate processed images.