IconEdit2 is a TrueColor Icon Editor for Windows 98/ME/NT4/200x/XP and Vista. It supports ICO, ICL, NIL, EXE, DLL, GIF, TIFF, BMP, JPEG and PNG files for open/extract/convert to icons. It can save your work as TrueColor, 256-color or 16-color ICO (up to 128x128 pixels), as well as GIF, TIFF, BMP, JPEG or PNG files. Allows you to paint, undo/redo, search for icons in your files and capture screen areas. Image rotation, various adjustments and filters also available. Contains several sample icons.

Main features:
* Easy to use;
* TrueColor;
* Capture screen areas;
* Search icons in your files;
* Multiple Undo/Redo;
* Buddy icons;
* Various image filters.

What are icons?
Icons are small images bearing meaningful information, like road signs. You can see icons on your Windows desktop. Every Windows software and every type of Windows document has its own icon, allowing distinguishing visually one software from another and one type of document from another.
Typical icon size is 32x32 pixels (color points). There also are small icons (16x16) and large icons (48x48 or even more). Maximum number of colors, which an icon can contain, is often referred to as "color depth".
Why do I need an icon editor?
You can use icons and icon editing program in a variety of ways. If you create your own applications, you need to create original icons for them. Alternatively, you can modify desktop shortcut and folder icons; substitute your own images instead of standard ones. If you are using AOL Instant Messenger, you can create original buddy icons to represent yourself in the net. You can save icons in JPEG, PNG, or GIF file format and use them in web pages. You can make photorealistic icons from any images like digital photos and use them anywhere.
Can I make transparent background for my icon?
Yes, just use right mouse button in IconEdit2 to paint with "transparent" color. Areas painted with "transparent" color will be transparent in saved icon.

The license of this software is Free Trial Software, the price is $20.00, you can free download and get a free trial.