A method and apparatus for manipulating digitized images stored as variable length encoded bitstreams such as JPEG format in a manner that reduces memory and processor resource requirements. A prescan means sequentially decompresses the bitstream to identify the location of encoded pixel image areas. Designated ones of these locations are recorded or stored in a prescan table. After the prescan operation has been performed on the image, image manipulations such as rotating, cropping, and zooming can be performed on a selected portion of the image by directly accessing only the encoded pixel image areas to be manipulated, without the need to sequentially decode and store all the encoded image areas in order to locate the ones of interest.