Data hiding techniques have taken the very important role with the speedy growth of intensive transfer of multimedia matter and stealthy communications. Steganography is the skill of hiding information in such a way that prevents recognition of the data. There are different kinds of carrier file formats can be used, but digital images are the most popular because of their existence on the Internet. In this paper, data hiding method is introduced that utilizes Rotation of the letters, JPEG compression and two new techniques. First, rotation of letters is done by matrix rotation. Then JPEG compression takes place, which includes two new techniques, i.e. Permutation straddling and Matrix Encoding. Results came from the research show that the proposed method can hide a large amount of secret data and also keep very high security as PSNR is to be more than 35 dB, and there is a comparision between the old technique and proposed technique.