Whats the correct way to alloc a UIImage to memory and release it iphone?

UIImage imageWithData: returns an autoreleased object, which should not be released by you again. So this code snipped contains not a memory leak but the opposite, a double free (in the worst case).

Both imageWithData and dataWithContentsOfURL return autoreleased objects, so you should have no memory leaks in that code snippet.

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