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How to use transparent PNG files on your web site (with JPEG compression)

This technique addresses a number of issues that have plagued web developers for a long time.
Issue #1: JPEG’s complete lack of transparency options.
Issue #2: GIF’s inflexible transparency options (no alpha channels or anti-aliasing)
Issue #3: Spotty support for PNG files (which *do* have transparency)
Issue #4 Lack of compression in PNG files. (A simple 300×300 image could be like 250K, where a jpeg of the same thing is only 30K.)
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