A method of producing a compressed image from a full resolution sparsely sampled extended dynamic range image produced by a sparsely sampled extended dynamic range image sensing device having fast photosites with a predetermined response to a light exposure for producing fast pixel values and slow photosites with a slower response to the same light exposure for producing slow pixel values, including the steps of: providing a full resolution sparsely sampled extended dynamic range image; separating the full resolution sparsely sampled image into a fast image comprising only fast pixel values and a slow image comprising only slow pixel values; and separately compressing the fast image and the slow image.