AVID TECHNOLOGY REPORTS REVENUES UP 90% FOR FIRST QUARTER 1995.

TEWKSBURY, Mass.--(BUSINESS WIRE)--April 25, 1995--Avid Technology, Inc. (NASDAQ: AVID) today reported record quarterly revenues of $83.9 million for the quarter ended March 31, 1995, an increase of 90 percent over first quarter 1994 revenues of $44.2 million. Avid reported a net loss for the quarter of $1.0 million or a loss of $0.05 per share. The loss reflects a $5.5 million one-time charge for transaction and restructuring costs incurred in connection with Avid's mergers with Digidesign, Inc., Elastic Reality, Inc. and Parallax Software, all of which were completed during the quarter. Without this charge, net income and earnings per share would have been $3.9 million and $0.20 respectively, as compared to net income of $2.5 million and earnings per share of $0.14 in the same quarter in 1994. The first quarter results of 1994 have been restated to reflect the acquisition of Digidesign, which was accounted for as a pooling of interests. The first quarter 1994 results of both Elastic Reality and Parallax Software were not material to the Company's financial statements for that quarter.

"We are very gratified by these quarterly results, which represent our sixteenth consecutive quarter of record revenues," commented Curt Rawley, Avid's president and chief executive officer. "Seasonally, the first quarter is our toughest revenue quarter because customers tend to delay purchase decisions until the National Association of Broadcasters show, held this year in April. However, favorable market reception for our Media Composer systems, broadcast products and audio products, including both Pro Tools III and AudioVision, more than compensated for any such delay in decisions this year."

"Avid achieved a number of milestones in the first quarter," Rawley continued. "Our Film Composer product received a Scientific and Engineering Award from the Academy of Motion Picture Arts and Sciences. We also introduced the newest member of the Media Composer family, the Media Composer 900, to bring the power of Media Composer editing and video finishing to a whole new realm of users. During the quarter, we also began shipping Power Macintosh versions of our Film Composer and Media Composer systems."

"The first quarter results of 1995 include the results of Digidesign, Parallax Software and Elastic Reality, all of which were acquired on a pooling of interests basis during the period," noted Jonathan Cook, Avid's chief financial officer. "The results also reflect one-time costs associated with the mergers. Of the total charge of $5.5 million, approximately $3.9 million consists of direct transaction expenses, primarily professional fees, and $1.6 million consists of various restructuring charges, primarily in connection with eliminating redundant activities."

"Since the start of the year, we have broadened our range of products," commented Rawley. "We have strengthened our position in core digital audio technologies and markets through the merger with Digidesign and acquired image processing expertise through the mergers with Parallax Software, a leader in paint and compositing technologies, and Elastic Reality, a leading developer of morphing and film restoration software. We believe that as a result of these steps, we will be better able to provide seamless, integrated solutions to digital media producers in the post-production, broadcast, corporate and home markets." Rawley concluded, "We are off to a good start in 1995 and look forward to seizing the opportunities that this year will bring." -0-

Avid Technology, Inc., headquartered in Tewksbury, Massachusetts, is an international developer and supplier of comprehensive solutions for capturing, creating, editing, and distributing digital media. Avid is a pioneering developer of nonlinear film, video and audio editing software and hardware and networking technologies for applications ranging from desktop video and post production to broadcast news. Avid's products are sold through direct sales offices and a network of distributors and resellers around the world.

Avid, Media Composer, AudioVision and Film Composer are registered trademarks of Avid Technology, Inc. and Pro Tools is a trademark of Digidesign, Inc. All other trademarks contained herein are the property of their respective owners.

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AVID TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)

                                        Three Months Ended
                                             March 31,
                                        1995             1994
                                     (unaudited)       (Restated
                                                        combined
                                                          data,
                                                       unaudited)

Net revenues                           $83,895         $44,250
Cost of revenues                        40,568          20,163
   Gross profit                         43,327          24,087

Operating expenses:
   Research and development             12,209           5,604
   Marketing and selling                21,658          12,828
   General and administrative            4,234           2,493
   Restructuring costs                   5,456

Total operating expenses 43,557          20,925

Operating income (loss)                  (230)           3,162
Interest income, net                      365              442
Income before income taxes                135            3,604
Income taxes                            1,093            1,138

Net income (loss)                       ($958)          $2,466

Net income (loss) per common share     ($0.05)           $0.14

Weighted average common shares
   outstanding                          18,129          17,610

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AVID TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
                                    March 31,        December 31,
                                       1995             1994
                                    (unaudited)      (Restated
                                                    combined data,
ASSETS:                                              unaudited)
Current assets:
   Cash and marketable securities      $42,283         $36,670
   Accounts receivable, net of
     allowances
     of $3,799 and $3,155 at
     March 31, 1995 and
     December 31, 1994,
     respectively                       57,242          54,805
   Inventories                          41,077          32,401
   Other current assets                 12,429          13,860
  Total current assets                 153,031         137,736

Investments in marketable
    securities                           3,506          15,221
Property and equipment, net             30,530          26,377
Other assets                             2,879           1,963
       Total assets                   $189,946        $181,297

LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
   Accounts payable and
    accrued expenses                   $38,200         $33,753
   Deferred revenue and other
    current liabilities                 17,355          17,288
Total current liabilities               55,555          51,041

Notes payable                            2,216           2,369

Total stockholders' equity             132,175         127,887
Total liabilities and
 stockholders' equity                 $189,946        $181,297

CONTACT: Avid Technology

Scott Higgins, Investor Relations Director,

[phone]

Julie O'Brien, Public Relations Specialist,

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