This paper shows the application of IHS color transform and principal component transform for information extraction from TM image in Suzhou study area. It is shown that lan-duse types have characteristic hues on color composites of multispectral data. Based on the hue analysis of water body

vegetation and urban area on TMs（R）

TM4（G）

TM5（B） color composite

the H component is color-sliced

the spatial distribution of the three major landuse types is distinctly demonstrated. On the inverse IHS color transform composite of principal components （PCs）

the information content of PCs is quantitatively and vividly displayed

the spectral difference between the old urban area and the newly developed urban area

the urban status and the feature of contemporary city planning are conspicuously demonstrated. The spectral difference among rice

vegetable and hill forest is also effectively enhanced. The combined use of principal component transform and IHS color transform provides a powerful information extraction tool for multispectral data processing.