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HotShots is a powerful screen capture tool with a integrated set of image editing tools. The program can capture the current desktop, all monitors (in case of multi-monitors configuration), an active window or a freehand region. The screenshots can be annotated by adding arrows, lines, shapes, callouts, highlights, text annotations and you can also add a drop shadow to the entire image.

It is probably the most feature rich and the best free TechSmith's SnagIt alternative that will not make you feel broke.