The extension methods of finite length signals for sub band coding associated with wavelet transformation are investigated.Considering the weakness of the existing extension methods,an extension method is presented which is named r factor pseudo circular extension method.It turns out theoretically that the input signal can be reconstructed exactly from the truncated section of the analyzed signals by our method and the method is better than other existing extension methods,as shown in many examples.A new valid way is provided for wavelet transform application in data compression.