Adobe Systems Issues Intra-Quarter Business Update; Company On Track to Meet Q3 Earnings Target.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--July 30, 2001--(Nasdaq:ADBE)

Adobe Systems Incorporated today is providing its regular intra-quarter business update for its third quarter in fiscal 2001, which ends August 31, 2001.

With five weeks remaining in the quarter, Adobe announced that it is on track to meet its pro forma earnings target. The Company also stated that its revenue outlook of flat year-over-year growth could be affected due to weaker than expected economic conditions impacting all of its product segments.

In summarizing its geographic performance to date, Adobe stated that U.S. revenue in June was solid, but was weaker than expected in July. In Asia, although Adobe had previously anticipated a slow-down in the third quarter, Japanese revenue in July decreased further than the Company's reduced expectations. In contrast, Adobe stated that Europe revenue stabilized during the first two months of the Company's third quarter since the slow-down in Europe began in April.

"Despite the global economic conditions and its potential effect on our Q3 revenue, Adobe is on track to meet its bottom line target for the quarter," said Bruce R. Chizen, president and chief executive officer of Adobe. "This is a testament to Adobe's continued focus on operations and expense management."

The Company plans to report its third quarter fiscal 2001 results on September 13, 2001 after the market closes.

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: adverse economic conditions in the U.S., Europe, Japan, and any of the other major countries in which the Company does business; lack of market acceptance of new products and upgrades; delays in shipment of the Company's new products and major new versions of existing products; introduction of new products by major competitors; declines in the average selling price of the Company's products; industry transitions to new distribution, business and information delivery models; and ongoing weakness in the Company's printing business due to product transitions. For further discussion of the risks and uncertainties, readers should refer to the Company's SEC filings including the 2000 annual report on Form 10-K and quarterly reports on Form 10-Q filed by the Company in 2001.

About Adobe Systems Incorporated

Adobe Systems Incorporated (www.adobe.com) builds award winning software solutions for Network Publishing, including Web, print, video, wireless and broadband applications. Its graphic design, imaging, dynamic media and authoring tools enable customers to create, manage and deliver visually-rich, reliable content. Headquartered in San Jose, Calif., Adobe is the second largest PC software company in the U.S., with annual revenues exceeding $1.2 billion.