IconEdit2 is an easy-to-use icon editor for Windows with full support for semi-transparency and multi-image icon files. It supports ICO, ICL, NIL, EXE, DLL, GIF, TIFF, BMP, JPEG and PNG for open/extract/convert to icons. Can save your work as ICO (with multiple color depths and sizes, up to 256x256 pixels), as well as exporting images as GIF, TIFF, BMP, JPEG or PNG files.
Allows painting, undo/redo, search for icons in your files and capture any screen area. One license allows using IconEdit2 at one computer at a time.