Adobe Systems Issues Q1 FY2002 Intra-Quarter Business Update; Company Reaffirms First Quarter Targets.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 31, 2002

Adobe Systems Incorporated (Nasdaq:ADBE) today is providing its regular intra-quarter business update for its first quarter of fiscal 2002, which ends March 1, 2002.

With more than four weeks remaining in the quarter and assuming typical seasonal results for the month of February, Adobe believes it will achieve revenue and pro forma earnings per share within the target ranges it previously provided on December 13, 2001. The Company's first quarter target ranges are revenue of $265 to $280 million, and pro forma earnings per share of $0.20 to $0.22.

In summarizing its geographic performance to date, Adobe stated that revenues in the U.S. and Europe were marginally weaker in December than anticipated. However, the Company has since seen an improvement in business in both markets as the typically slow holiday season has passed and new versions of products were introduced in January. In Asia, Japan revenue continues to be stable and is on track with Company expectations for the first quarter.

Commenting on the first quarter thus far, Bruce R. Chizen, president and chief executive officer of Adobe stated, "We are in the midst of a strong product release cycle. We have shipped several products, including Adobe InDesign 2.0, and we are on track to deliver other key products as planned."

The Company plans to report its first quarter fiscal 2002 results on March 14, 2002 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 changes in general economic conditions in any of the major countries in which the Company does business, including the recent slow-down affecting the United States, Europe, Japan, and potentially other geographic areas; continuing adverse economic impact of the recent national tragedy on September 11, 2001; delays in shipment of our new products and major new versions of existing products; corporate reductions in marketing expenditures which may result in lower demand for professional content creation and layout products; lack of market acceptance of new products and upgrades; introduction of new products by major competitors; weakness in demand for application software and printers; lack of growth in worldwide personal computer and printer sales and downward sales price adjustments; renegotiation of royalty arrangements; consolidation in the OEM printing business; ongoing weakness in our printer business due to product transitions; industry transitions to new business and information delivery models; and market risk associated with our equity investments. For further discussion of the risks and uncertainties, individuals 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

Founded in 1982, Adobe Systems Incorporated (www.adobe.com) builds award-winning software solutions for network publishing, including Web, ePaper, 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.

Note to Editors: Adobe, the Adobe logo, and InDesign are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.