Concept: These animation are designed using Image Ready which was bundled with Adobe Photoshop in the previous versions. Adobe has officially discontinued Image ready with its latest release and included the animation features as an integral part of creative suit. Gif animation was the prime technique prior to the emergence of flash and Image Ready could be used for a tiny animation to fulfill the needs of web. You can still use these techniques in the latest versions of Adobe Photoshop to create gif animations.
1. Open Photoshop and open the two
(preferably same sized) images to be animated.
 
2. Drag one image on other to get the following layer
structure.

3. File > Jump To >
Image Ready 3.0
4. Make Frames from Layers.
5. In the animation palette select 1st frame and tween
it with the next frame for opacity.
6. Next, select the last frame and tween it with the
first frame for opacity.

7. Set the timings for frames.
8. Set the no. of time you want to play the animation.
9. Check the performance in the browser
File > Preview In > Click the browser
you want

10. Save the file with
File > Save Optimized or File > Save
Optimized As
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