Nowadays, security of the secret data is a major problem. This paper proposes a new data hiding method based on LSB and DWT algorithms. In this proposed method the cover image is compressed using DWT algorithm. Then hide the data in to the compressed cover image using LSB algorithm. By this proposed technique text, image can be embedded at the same time without affecting the image quality.This system is implemented in Xilinx Spartan 3E kit using Xilinx platform studio with Microblaze soft core processor. The program is done with System C language. The PSNR, MSE value of the proposed technique is better than previous steganographic methods.
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