Adobe Systems Provides Q3 FY2002 Intra-Quarter Business Update; Company Reduces Q3 Revenue and Profit Targets.

Business Editors/High-Tech Writers

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

Adobe Systems Incorporated (Nasdaq:ADBE), the leader in network publishing, today is providing its regular intra-quarter business update for its third quarter of fiscal 2002, which ends August 30, 2002.

With more than four weeks remaining in the quarter, Adobe announced that it is reducing its third quarter revenue target range to $270 to $290 million from its previously stated target range of $300 to $320 million. In addition, third quarter pro forma earnings per share are now targeted at $0.18 to $0.23, down from the original target of $0.24 to $0.27.

The Company cited lower than expected revenue in the month of July as the reason for the anticipated shortfall. The revenue decline in July occurred across all of its business segments and major geographic markets, with particular weakness in Europe and Japan.

"This is a difficult global business environment and I am disappointed we had to reset our Q3 targets. However, Adobe continues to be a very profitable company -- we have strong market positions and continue to invest in our long-term growth opportunities," stated Bruce R. Chizen, Adobe president and chief executive officer.

Adobe plans to report its third quarter fiscal 2002 results on September 12, 2002 after the market closes.

This press release contains forward-looking statements, including those related to revenue, earnings per share, and profitability, 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; 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; delays or problems associated with the integration of acquisitions; 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/licensing arrangements; litigation; 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 these and other risks and uncertainties, individuals should refer to the Company's SEC filings, including the 2001 annual report on Form 10-K and quarterly reports on Form 10-Q to be filed in 2002. The Company does not undertake an obligation to update forward-looking statements.

About Adobe Systems Incorporated

Founded in 1982, Adobe Systems, Incorporated (www.adobe.com), the leader in network publishing, offers a comprehensive line of software for enterprise and creative professional customers. Its products enable customers to create, manage and deliver visually rich, compelling and reliable content. Based in San Jose, Calif., Adobe is one of the world's largest software companies.

Note to Editors: Adobe and the Adobe logo 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.