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Yahoo recently introduce its online image optimization tool Smush it. With this tool you can reduce your image size without compromising with the image quality.
This tool can reduce image bits to make your image more litter to optimize it for web and it takes care of the quality of the image.
You can use this service by:
You can upload images to the site thru your browser
You can provide images URL or
You can use there Firefox plugin to optimize images on a website.
