<?php
    $cats = get_categories();
    $category_images = get_option( 'category_images' );

    foreach ((array)$cats as $cat) {
        $catdesc = $cat->category_description;
        $catnumber = $cat->cat_ID;

    echo '<div><a href="'. get_category_link($cat).'" title="'. strip_tags($catdesc) .'">'. $cat->cat_name . '</a></div><a href="' . get_category_link($cat) . '" title="'. strip_tags($catdesc) .'"><img src="' . $category_images[1] . '" alt="' . $cat->cat_name . '" /></a>';
    }
?>