In this paper, we describe a method to fuse multiple images taken with varying exposure times in the JPEG domain. The proposed algorithm finds its application in HDR image acquisition and image stabilization for hand-held devices like mobile phones, music players with cameras, digital cameras etc. Image acquisition at low light typically results in blurry and noisy images for hand-held camera's. Altering camera settings like ISO sensitivity, exposure times and aperture for low light image capture results in noise amplification, motion blur and reduction of depth-of-field respectively. The purpose of fusing multiple exposures is to combine the sharp details of the shorter exposure images with high signal-to-noise-ratio (SNR) of the longer exposure images. The algorithm requires only a single pass over all images, making it efficient. It comprises of - sigmoidal boosting of shorter exposed images, image fusion, artifact removal and saturation detection. Algorithm does not need more memory than a single JPEG macro block to be kept in memory making it feasible to be implemented as the part of a digital cameras hardware image processing engine. The Artifact removal step reuses the JPEGs built-in frequency analysis and hence benefits from the considerable optimization and design experience that is available for JPEG.