Avid Updates First Quarter 2002 Outlook.

Business/Technology Editors

TEWKSBURY, Mass.--(BUSINESS WIRE)--April 2, 2002

Avid Technology, Inc. (Nasdaq: AVID) today provided an update on the company's outlook for its first quarter financial results. As a result of continuing weak economic conditions affecting the company's video business globally, revenues for the first quarter ended March 31, 2002 are projected to be below previous expectations and in the range of $91 to $93 million.

Due to the reduced revenue, gross profit is projected to be lower than originally expected. However, operating expenses are also projected to be below previous expectations. Taking into account the lower than expected gross profit and operating expenses, Avid's net loss is expected to be in the range of $2 to $4 million excluding amortization, restructuring and other costs. These projected results are subject to the normal quarter-end accounting review.

David Krall, Avid's president and chief executive officer commented, "Customers for our core video products continue to feel the effects of the weak advertising market and are taking a very conservative approach to their purchasing. While the results in our video business are less than originally anticipated, our audio business has shown growth sequentially and year-on-year based on strong demand for our new Pro Tools(R)|HD family of audio products. Looking forward, at next week's National Association of Broadcasters' convention, we will be unveiling a number of exciting new products in our video business as well as new capabilities across our product lines."

Avid expects to announce final first quarter results on April 18, 2002 after the close of the market. Following the release of the earnings announcement, Avid intends to hold a conference call to discuss the results and provide information about the company's outlook for the balance of 2002.

About Avid Technology, Inc.

Avid Technology, Inc. delivers the solutions that Make, Manage and Move Media(TM). As a recognized digital standard for professionals who Make the world's media -- from video, audio and film to animation, special effects and streaming media -- Avid's products are used to make more television and news shows, commercials, music videos and CDs, corporate/industrial productions and major motion pictures combined than any other nonlinear editing manufacturer in the world. Building on its award-winning heritage, which includes a Grammy(R) and several Emmy(R) awards as well as an Oscar(R) statuette representing the 1998 Scientific and Technical Award for the concept, design and engineering of the Avid(R) Film Composer(R) system for motion picture editing, Avid is extending its reach by redefining how digital media is shared, stored and distributed. To Manage today's increasingly rich collection of dynamic media, Avid provides powerful servers, networks and media tools to help customers search files, share media and collaborate on new productions, both locally and globally. Avid's solutions also empower users to easily Move media, whether on air, over cable or satellite or through the Internet. Like no other media company today, Avid's end-to-end solutions span the continuum of media creation, management and distribution. The company's corporate headquarters are located in Tewksbury, MA. More information about the company is available at www.avid.com.

The above release includes forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1996, including statements about the results of operations during the first quarter of 2002. There are a number of factors that could cause actual events or results of operations to differ materially from those indicated by such forward-looking statements, such as market acceptance of Avid's products, continuing weak worldwide economic conditions and the other factors set forth under the caption "Certain Factors That May Affect Future Results" in Avid's Form 10-K for the year ended December 31, 2001 and other filings with the Securities and Exchange Commission.

(c)2002 Avid Technology, Inc. All rights reserved. Product specifications are subject to change without notice. Avid, Film Composer, Pro Tools and Make, Manage and Move Media, are either registered trademarks or trademarks of Avid Technology, Inc. in the United States and/or other countries. Oscar is a registered trademark and service mark of the Academy of Motion Picture Arts and Sciences. Emmy is a registered trademark of ATAS/NATAS. Grammy is a trademark of The National Academy of Recording Arts & Sciences, Inc. All other trademarks contained herein are the property of their respective owners.