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Flattening Transparency when saving as .eps

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I am doing a logo design which comprises text sitting on top of a png image.  The original png image has a transparent background.

 

When I save as .eps, I get the message "The document contatins artwork that requires flattening".  So I select the image, Object > Flatten Transparency and it saves fine.

 

But now it's put a white background behind the image.  I need the entire logo to be tranasparent.

 

Where am I going wrong?


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