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From Selection icon located at bottom of Path palette, click Make Work Path. This converts any selected area in image into a path. You can use other selection tools to select an image. To select white areas of background, use Magic Wand Tool.
From Select menu, choose Inverse to select opposite areas. When you click on Selection icon at bottom of Path palette, selected image will be made into a path. Use Pen tool to adjust your image.
Now, you will have to set your path to Clipping Path. To do so, from path palette submenu, choose Clipping Path. A dialog box will open. This allows you to choose which path to use as a Clipping Path. Now you can save file in EPS or TIFF file format. This will mask your bitmap image when placed into page layout drawing programs or drawing software. Through this, any bitmap image will have high quality and will be resolution-independent.
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