Here is a digital image tip from Honeycomb Archive, a web-based digital asset managment company.
An eps file with a clipping path can be saved with jpeg compression and then used in a desktop publishing application like InDesign and QuarkXPress. The normal eps file is “binary” and is 5-10 times larger than the eps with jpeg compression. Saving an eps with jpeg compression retains the benefit of an eps (active clipping path in desktop publishing application) but is the size of a jpeg.
To do this, open the file in Photoshop and click Save As under the File pull-down menu.
Select the EPS file format from the drop down menu and then click Save.
Select the level of jpeg quality from the EPS Options window and click OK. (Note: if you want your digital images to work on mac and windows you need to use preview TIF 8 bit.)