You've discovered that UIImage objects can take up a lot of memory when they're created.
Instead of creating UIImage objects, why not use API's that ALAsset provides to you that don't hog memory. For example, you can get the image dimensions
(I've linked the Apple documentation for you).
Also, this line:
if ( image.size.height/2==screenHeight && image.size.width/2==screenWidth)
seems a little dangerous to me. Unless you control all the images that are being loaded, any full resolution image is very likely to be a different size than exactly 1/2 of the screen height and width.