Adobe Systems Provides Intra-Quarter Business Update; Company Increases Q2 FY2004 Financial Targets.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--May 3, 2004

Adobe Systems Incorporated (Nasdaq:ADBE) today provided its regular intra-quarter business update for its second quarter of fiscal 2004, which ends June 4, 2004.

Adobe stated it expects to exceed the financial targets it provided on March 18, 2004. The Company increased its Q2 FY2004 target ranges to the following: revenue of $390 to $410 million, and earnings per share of $0.39 to $0.44. Adobe's prior targets were revenue of $365 to $385 million, and earnings per share of $0.33 to $0.39.

The increase in targets was due to the greater than expected revenue thus far in the quarter for its Creative Suite and CS products and the Acrobat product family. Adobe also indicated all of its major geographic markets are performing well.

The Company plans to report its second quarter fiscal 2004 results on June 17, 2004 after the market closes.

Forward Looking Statements Disclosure

This press release contains forward looking statements, including those related to revenue, earnings per share, and geographic and product performance, which 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: general economic or political conditions in any of the major countries in which we do business, delays in development or shipment of our new products or major new versions of existing products, introduction of new products by existing and new competitors, difficulties in transitions to new business models or markets, changes in demand for application software, computers and printers, intellectual property disputes and litigation, changes to our distribution channel, the impact of malicious code, such as worms and viruses, on our computer network and applications, interruptions or terminations in our relationships with our turnkey assemblers, fluctuations in foreign currency exchange rates, changes in accounting rules, unanticipated changes in tax rates, market risks associated with our equity investments, and our inability to attract and retain key personnel. For further discussion of these and other risks and uncertainties, individuals should refer to the Company's SEC filings, including the 2003 annual report on Form 10-K and quarterly reports on Form 10-Q filed in 2004. The Company does not undertake an obligation to update forward looking statements.

About Adobe Systems Incorporated

Adobe helps people and businesses communicate better through its world-leading digital imaging, design and document technology platforms for consumers, creative professionals and enterprises. Adobe's revenue in its last fiscal year exceeded $1.2 billion. For more information about Adobe, visit www.adobe.com.

Adobe, the Adobe logo, Adobe Creative Suite, and Adobe Acrobat are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries.