We propose methods for generating a halftone image, in which each pixel takes one of two tone values. The generated image contains hidden data, which is present at data storage pixels chosen using a pseudo-random number generator. In a first case, the data is hidden within an existing halftone image by reversing the tone value at certain of the data storage pixels, and at pixels neighbouring the data storage pixels. In a second case, the halftone image is generated from a grey-scale image, and data is hidden during this conversion process.