Compressed bitstreams generated by an MPEG-2 video encoder (or digital TV picture transmission are quite sensitive to channel errors. Due to the coding structure of the MPEG-2 video compression algorithm, a single bit error can affect not only the current Picture frame but also succeeding frames. Error concealment algorithms attempt to repair damaged portions of the picture by exploiting spatial and temporal redundancies in the correctly received and reconstructed video frames. In this paper, we analyze the effect of channel errors in MPEG-2 video bitstreams and estimate lost motion vectors by exploiting temporal redundancies in the video frames. Motion vectors can be estimated from the vertically adjacent extended region of lost macroblocks. Finally, we conceal the damaged macroblocks by compensating the displacement with the estimated motion vectors. Simulation results demonstrate that both the weighted sum algorithm and the extension matching algorithm achieve good performance in terms of PSNR values as well as subjective image quality.