{eps} is about using files in the Encapsulated PostScript format with TeX.

Encapsulated PostScript, or EPS, is a DSC-conforming PostScript document with additional restrictions which is intended to be usable as a graphics file format. In other words, EPS files are more or less self-contained, reasonably predictable PostScript documents that describe an image or drawing and can be placed within a (dvi)TeX or another PostScript document.

Further information can be found on the Wikipedia entry for EPS.

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