Autodesk Reports Record Quarterly and Fiscal Year Results; Company Reports 58% Revenue Growth.

SAN RAFAEL, Calif.--(BUSINESS WIRE)--Feb. 25, 1998--Autodesk, Inc. today reported net revenues for the fourth quarter ended January 31, 1998 of $181.8 million compared to $115.0 million for the same quarter in the previous fiscal year.

Net income for the fourth quarter was $29.3 million, or $0.60 per share (diluted) compared to $6.0 million, or $0.13 per share (diluted) posted in the same period of the prior fiscal year.

Net revenues for fiscal year 1998 were $617.1 million, compared to $496.7 million in the prior fiscal year. Excluding non-recurring charges primarily related to the acquisition of Softdesk, earnings per share (diluted) for fiscal year 1998 were approximately $1.45, versus $0.88 per share (diluted) in the prior fiscal year.

"These strong results continue to reflect the success of our technology and market-specific focus at Autodesk," said Carol Bartz, Autodesk Chairman and CEO. "This focus resulted in the launch and delivery of 20 major products this fiscal year. Autodesk fourth quarter results are the culmination of a great year, where we reported record revenues in our traditional markets, and also gained solid new ground in our vertical markets, Kinetix, and Personal Solutions Group. This is exactly what we set out to accomplish." -0-

A summary of Autodesk's financial results is as follows:

Three months ended January 31             1998               1997

Net revenues                          $181,851,000       $115,020,000
Net income                            $ 29,318,000       $  5,993,000
Basic net income per share                   $0.64              $0.13
Diluted net income per share                 $0.60              $0.13

Fiscal year ended January 31               1998              1997

Net revenues                          $617,126,000       $496,693,000
Net income                            $ 15,364,000       $ 41,571,000
Basic net income per share                   $0.33              $0.91
Diluted Net income per share                 $0.31              $0.88

     Results for the fiscal year ended January 31, 1998 include
non-recurring charges in the first fiscal quarter of $58.1 million
primarily related to the March, 1997 acquisition of Softdesk, Inc.
Results for the 12 month period ended January 31, 1997 include
non-recurring charges of approximately $4.7 million.

-0-

Autodesk is the world's leading supplier of PC design software and multimedia tools. The Company's 2D and 3D products and data management tools are used in many industries for architectural design, mechanical design, mapping, film and video production, video game development and Web content development. Its Kinetix division is the leader in PC-based 3D modeling and animation software, providing a full range of products for digital media and design professionals.

The fifth-largest PC software company in the world, Autodesk has three million customers in 150 countries. Autodesk products are sold through Autodesk Systems Centers, Resellers and Distributors worldwide. For more information on Autodesk, please call 415/507-5000, type GO ADESK on CompuServe(R), or visit its World Wide Web site at http://www.autodesk.com. Kinetix may be reached by calling 800-879-4233 or through its World Wide Web site at http://www.ktx.com. Autodesk shares are traded on the NASDAQ National Market System under the symbol ADSK. -0-

Note to Editors: Autodesk, the Autodesk logo, AutoCAD, Kinetix and 3D Studio MAX are registered trademarks of Autodesk, Inc., CompuServe is a registered trademark of H&R Block. All other brand names, product names or trademarks belong to their respective holders. -0-

                          Autodesk, Inc.
                   Consolidated Statement of Income
                (In thousands, except per share data)


                               Three Months Ended  Twelve Months Ended
                                   January 31,         January 31,
                                 1998      1997      1998      1997
                               ---------------------------------------
                                   (Unaudited)

Revenues                       $185,967  $118,088  $632,358  $509,630

Direct commissions                4,116     3,068    15,232    12,937
                               ---------------------------------------

Net revenues                    181,851   115,020   617,126   496,693

Costs and expenses:
    Cost of revenues             18,580    15,083    70,858    64,217

    Marketing and sales          65,536    49,814   237,107   199,939

    Research and development     31,347    24,231   122,432    93,702

    General and administrative   22,832    18,825    83,287    74,280

    Charge for acquired
      in-process research
      and development                 -         -    58,087     4,738
                               ---------------------------------------
                                138,295   107,953   571,771   436,876
                               ---------------------------------------

Income from operations           43,556     7,067    45,355    59,817

Interest and other income, net    2,253     2,224     9,644     6,695
                               ---------------------------------------

Income before income taxes       45,809     9,291    54,999    66,512

Provision for income taxes       16,491     3,298    39,635    24,941
                               ---------------------------------------

Net income                     $ 29,318   $ 5,993  $ 15,364  $ 41,571
                               =======================================

Basic net income per share       $ 0.64    $ 0.13    $ 0.33    $ 0.91
                               =======================================

Diluted net income per share     $ 0.60    $ 0.13    $ 0.31    $ 0.88
                               =======================================

Shares used in computing basic
    net income per share         45,930    44,970    46,760    45,540
                               =======================================

Shares used in computing diluted
    net income per share         48,840    46,570    49,860    47,190
                               =======================================


                             Autodesk Inc.
                      Consolidated Balance Sheet
                            (In thousands)

                                               January 31, January 31,
                                                  1998         1997

ASSETS:

Current assets:
    Cash and cash equivalents                  $  96,089    $  64,814
    Marketable securities                        100,399      117,971
    Accounts receivable, net                      60,856       68,577
    Inventories                                    7,351        7,340
    Deferred income taxes                         27,577       22,759
    Prepaid expenses and other current assets     15,430       16,210
                                               -----------------------
Total current assets                             307,702      297,671
                                               -----------------------

Marketable securities, including a
    restricted balance of $17,985 at January 31,
    1998 and $28,000 January 31, 1997            104,831      103,523

Computer equipment, furniture and
  leasehold improvements, at cost:
    Computer equipment and furniture             117,434      103,903
    Leasehold improvements                        20,505       17,818
    Less accumulated depreciation                (98,800)     (77,671)
                                               -----------------------
Net computer equipment, furniture,
  and leasehold improvements                      39,139       44,050

Purchased technologies and capitalized software   31,553       15,916
Other assets                                      50,458       31,073
                                               =======================
                                               $ 533,683    $ 492,233
                                               =======================

LIABILITIES & STOCKHOLDERS' EQUITY:

Current liabilities:
    Accounts payable                           $  26,417    $  24,557
    Accrued compensation                          34,962       18,099
    Accrued income taxes                          76,465       75,061
    Deferred revenues                             18,934        3,141
    Other accrued liabilities                     42,709       29,313
                                               -----------------------
Total current liabilities                        199,487      150,171
                                               -----------------------

Deferred income taxes                                481        2,974
Litigation accrual                                29,328       29,328
Other liabilities                                  1,255        1,646

Put warrants                                           -       64,500

Stockholders' equity:
    Common stock                                 299,315      147,091
    Retained earnings                             20,472      106,587
    Foreign currency
     translation adjustment                      (16,655)     (10,064)
                                               -----------------------
Total stockholders' equity                       303,132      243,614
                                               -----------------------
                                               $ 533,683    $ 492,233
                                               =======================

CONTACT: Autodesk, Inc.

Christine Tsingos, 415/507-6704

Misty Ohmart, 415/507-6208