Adobe has announced the third generation release of Photoshop Elements, its digital photo editing and sharing software aimed at consumers. With digital cameras quickly become a staple of everyday life, Adobe is facing increased competition by rival software packages and has upped the ante in its latest Elements upgrade.

Photoshop Elements 3.0 adds a one-click photo enhancement tool, improved red eye removal, as well as support for processing images in RAW format. Based upon Photoshop CS, the new Elements also includes the Healing Brush and Spot Healing Brush for fixing blemishes on digital photos.

"People want to do more than edit their photos - they want to share them in fun and interesting ways with family and friends, as well as organize their rapidly growing photo collection," said Bryan Lamkin, senior vice president of Digital Imaging and Digital Video products at Adobe. "We have responded by creating one product that addresses these needs without compromising the quality editing Photoshop Elements is well-known for."

New sharing options in version 3.0 include PhotoMail, which sends framed pictures in a themed e-mail. Users can also create slideshows with narration, music and special effects.

In addition to Photoshop Elements 3.0, Adobe unveiled a new video counterpart called Premiere Elements that brings DVD making to the consumer. Premiere Elements will be offered in a bundle with Photoshop Elements later this fall for $150 USD. Photoshop Elements 3.0 will also be available in a standalone package for $100 USD.