This is driving me mad....select a photo and optimize it,,,save and export the site.....go to Explorer....file is still the same size and is a .png!
Makes no sense at all!
Then looked at the pop-up properties - almost all the images on the site are .png's not .jpgs. In the pop-up dialogue, I noticed that "let Xara web designer 9 premium choose the type automatically" was checked. Changed this to "jpeg best for photos" and voila - problem solved.
I am VERY surprised that Xara would choose to export as a .png seeing tat the combined "image is 90% photo and 10% a white box vector with grey border....