Real time image and video communication in packet switched networks suffers severely from packet loss. When using a dispersive packetization, i.e., spreading neighboring pixel data or coefficients over different packets, the lost data can be estimated from its correctly received neighbors. This paper presents a novel locally adaptive error concealment method for subband coded images. In the proposed method, we reconstruct a, lost coefficient partially from its horizontal and partially from its vertical neighboring coefficients. We also estimate the optimal interpolation weights from the neighborhood of the lost coefficient. The proposed method outperforms state-of-the-art methods of similar and higher complexity. Especially, the high-frequency coefficients are reconstructed much better, resulting in better reconstruction of textures and edges. The results demonstrate a significant improvement of visual quality compared to recent related methods.