We had a discussion in Adv. DTP class regarding transparent backgrounds on print/publishing images -my advise is EPS with a clipping path but there in another choices of transparency depending on the publishing you’re following- web or print.
Transparent Backgrounds on Print
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About the Author: Pete Skoro
Hey Pete – I bet you can also use an alpha channel for print, video or png formats. And in a gif select a color to be transparent!