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'''Reason''': '''Reason''': The other alternative is to use a GIF, however, PNG typically provides 5% - 25% better compression over GIF. Using a format such as JPEG is very wrong because JPEG is for true color images and thus will convert your paletted image to truecolor, which is inefficient and unnecessary. You will achieve better compression without quality loss using PNG over JPEG on images that are 256 color or less.