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EPS is short for Encapsulated Postscript.  The file format was created by Adobe in the late 1980s to serve the needs of designers and printers. It is no longer a modern file format but is still around because of legacy production equipment.

An Adobe graphic file format. EPS translates graphics and text into a code that the printer can read and print. EPS files hold both low-resolution “viewfiles” and high- resolution PostScript image descriptions. A vector-based, computer graphics file format developed by Adobe Systems. EPS is the preferred format for many computer illustrations because of its efficient use of memory and fine color control.