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Image Dithering

Does anyone know how to use dithering technique to convert 16 bit bitmap image to low depth color such as 12 bpp or 8 bpp for LCD display...?

The source is RGB565 bmp format convert to RGB444 or RGB323 format.

I guess that there are many algorthm exist for PC but we would like to perform it on arm with limited resource.
I don't care about dithering algorithm's efficiency,
but care about the dithering algorithm's quality.

Thanks in advance.