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In this paper, a data hiding scheme by simple LSB substitution is proposed. By applying an optimal pixel adjustment process to the stego-image obtained by the simple LSB substitution method, the image quality of the stego-image can be greatly improved with low extra computational complexity. The worst case mean-square-error between the stego-image and the cover-image is derived. Experimental results show that the stego-image is visually indistinguishable from the original cover-image. The obtained results also show a significant improvement with respect to a previous work.