You might want to check out the Java Jpeg Encoder at: http://www.obrador.com/essentialjpeg/jpeg.htm Once you've got a Graphics object or Image with the desired graphics and text, you can use the JpegEncoder to write it to a Jpeg. There are also Gif encoders available (see www.acme.com), although technically you need a license from Unisys if you plan on using the gif encoding algorithm in your program.
Good night. Drive safely. Here's a tiny ad for the road:
Building a Better World in your Backyard by Paul Wheaton and Shawn Klassen-Koop