The original photos were taken by American photographer Richard Avedon in 1967 and then given a special treatment.
The Beatles Bible website has a little more information on it.
The effect on George's portrait is achieved by smudging the photo while the print is still wet. I've seen this done by a pro photographer.
Original portfolio of the photos, only a few were printed, sold at
Christie's for over $600,000
And here's a
Wiki article on the man!