We propose a new connectivity-guided adaptive wavelet transform based mesh compression framework. The 3D mesh is first transformed to 2D images on a regular grid structure by performing orthogonal projections onto the image plane. Then, this image-like representation is wavelet transformed using a lifting structure employing an adaptive predictor that takes advantage of the connectivity information of mesh vertices. Then the wavelet domain data is encoded using "Set Partitioning In Hierarchical Trees" (SPIHT) method or JPEG2000. The SPIHT approach is progressive because the resolution of the reconstructed mesh can be changed by varying the length of the 1D data stream created by the algorithm. In JPEG2000 based approach, quantization of the coefficients determines the quality of the reconstruction. The results of the SPIHT based algorithm is observed to be superior to JPEG200 based mesh coder and MPEG-3DGC in rate-distortion.