Micrografx, Inc. Reports Fourth Quarter and Annual Results for Fiscal Year 2001.

    Business Editors & High Tech Writers

      DALLAS--(BUSINESS WIRE)--Aug. 10, 2001--Micrografx, Inc.,
(OTCBB:MGXI) today announced its fourth quarter and annual results for
its fiscal year 2001. For the fourth quarter ended June 30, 2001, the
Company reported revenues of $7.6 million, income from operations of
$144,000 and net loss applicable to common shareholders of $212,000,
or $0.02 per share. This compares to $8.4 million in revenue for the
previous quarter, with income from operations of $843,000 and net
income applicable to common shareholders of $93,000, or $0.01 per
share. For the year ended June 30, 2001, Micrografx reported revenues
of $30.2 million and a net loss applicable to common shareholders of
$1.7 million, or $0.15 per share, compared to revenue of $36.3 million
and net loss applicable to common shareholders of $22.2 million, or
$1.95, per share for the fiscal year ended June 30, 2000.
      Jim Hopkins, president and chief executive officer, said, "We are
pleased with our efforts to reduce costs and control spending.
Revenues were in line with our projections and expenses came in
slightly lower than expected." Mr. Hopkins added, "Although the
Company reported a loss for the fiscal year, it was a substantial
improvement over the previous year's results, and management believes
the Company has established a base upon which a profitable future can
be built."

    About Micrografx, Inc.

      Micrografx is a recognized global leader in providing software,
solutions and services enabling customers to improve productivity by
graphically visualizing, improving and implementing key business
processes. By visualizing and interacting with the data and
information associated with these business processes, our customers
improve time-to-market, customer satisfaction, and profitability. Key
customer initiatives include improving and implementing processes that
drive e-business, quality initiatives like Six Sigma, and key
line-of-business applications including supply chain management,
interactive parts catalogs and interactive electronic technical
manuals. Visit www.micrografx.com for more information or contact
888/744-1210.

      This release, other than historical information, includes
forward-looking statements with respect to achieving corporate
objectives, strategic direction, advancement of enterprise business,
and certain other matters. These statements are made under the "safe
harbor" provisions of the Private Securities Litigation Reform Act of
1995 and involve risks and uncertainties which could cause actual
results to differ materially from those in the forward-looking
statements, including but not limited to the following: product
development, product introductions, licensing agreements,
technological change, competition, international operations, changes
in distribution channels, seasonality, growth in the enterprise
solutions business of the Company, market demand and acceptance of
products, the impact of changing economic conditions, fluctuation in
foreign currency exchange rates, and others detailed in the Company's
Annual Report on Form 10-K, Quarterly Reports on Forms 10-Q and other
Securities and Exchange Commission filings. These filings can be
obtained by contacting Micrografx Investor Relations.

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                           Micrografx, Inc.
                      Consolidated Balance Sheets
                            (In thousands)
                              (Unaudited)

                                               June 30,      June 30,
                                                 2001          2000
                                              ----------    ----------
 Assets

 Current assets:
       Cash and cash equivalents              $   1,690     $   2,843
       Accounts receivable, net of allowances
        of $869 and $2,788                        6,549         3,926
       Other current assets                       1,264         1,477
                                              ----------    ----------
           Total current assets                   9,503         8,246

 Property and equipment, net                        879         1,570

 Capitalized software development costs, net      5,637         5,530

 Acquired product rights, net                       954         1,612

 Goodwill, net                                    1,378         1,749

 Other assets                                       576           772
                                              ----------    ----------
           Total assets                       $  18,927     $  19,479
                                              ==========    ==========


                           Micrografx, Inc.
                      Consolidated Balance Sheets
                 (In thousands, except per share data)
                              (Unaudited)


                                               June 30,      June 30,
                                                 2001          2000
                                              ----------    ----------
 Liabilities and Shareholders' Equity

 Current liabilities:
       Accounts payable                       $   3,327     $   3,606
       Accrued compensation and benefits          1,388         1,597
       Other accrued liabilities                  2,557         3,503
       Deferred revenue                           2,227         1,584
       Subordinated convertible debenture         5,797            --
       Notes payable                                940           138
       Receivable facility                          643           767
       Income taxes payable                         180           271
                                              ----------    ----------
           Total current liabilities             17,059        11,466

 Long-term debt                                      --         5,797
 Other non-current liabilities                      203           437

 Shareholders' equity:
       Preferred stock, $.01 par value,
        10,000 shares authorized; issued
        series A convertible 1,120 shares at
        stated value                              1,449            --
       Common stock, $.01 par value, 20,000
        shares authorized; 13,302 and 12,263
        shares issued                               133           123
       Additional capital                        38,254        38,029
       Accumulated deficit                      (30,632)      (28,915)
       Accumulated other comprehensive loss      (1,740)       (1,659)
       Less - treasury stock (766 shares),
        at cost                                  (5,799)       (5,799)

                                              ----------    ----------
        Total shareholders' equity                1,665         1,779
                                              ----------    ----------
        Total liabilities and shareholders'
         equity                               $  18,927     $  19,479
                                              ==========    ==========

                           Micrografx, Inc.
                 Consolidated Statements of Operations
                 (In thousands, except per share data)
                              (Unaudited)


                                                 Fiscal year ended
                                                      June 30,
                                              ------------------------
                                                 2001          2000
                                              ----------    ----------

 Net revenues                                 $  30,171     $  36,273
 Cost of revenues                                 5,955         9,204
                                              ----------    ----------
      Gross profit                               24,216        27,069

 Operating expenses:
    Sales and marketing                          15,998        23,462
    General and administrative                    4,408         7,310
    Net research and development                  4,192         7,445
    Write down of long-lived assets                  --         8,206
    Restructuring charge                           (330)        1,662
                                              ----------    ----------
      Total operating expenses                   24,268        48,085

                                              ----------    ----------
 Income (loss) from operations                      (52)      (21,016)

 Interest income                                    (55)          (65)
 Interest expense                                   863           621
 Other (expense) income, net                        451           143
                                              ----------    ----------
      Total non operating expense                 1,259           699

                                              ----------    ----------
 Income (loss) before income taxes               (1,311)      (21,715)

 Income tax provision                               323           454

                                              ----------    ----------
 Net income (loss)                               (1,634)      (22,169)

 Preferred stock dividends                          (83)           --

                                              ----------    ----------
 Net income (loss) applicable to common
 shareholders                                 $  (1,717)    $ (22,169)
                                              ==========    ==========

 Basic and diluted income (loss)
 per common share
                                              $   (0.15)    $   (1.95)
                                              ==========    ==========

    --30--ltw/da*

    CONTACT: Micrografx, Inc.
             Investor Relations
             Greg DeWitt, 469/232-1062
             [e-mail]

    KEYWORD: TEXAS
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE SOFTWARE
EARNINGS
    SOURCE: Micrografx, Inc.