San Jose, Calif., (May 26, 1998) (Nasdaq: ADBE) -- Adobe Systems Incorporated and The Learning Company, Inc. (NYSE: TLC) announced today that they have settled a lawsuit brought by Adobe for infringement of its copyrights on 1169 font software programs, infringement of its patents on certain typeface designs, and other claims.

The settlement came after Judge Whyte of the United States District Court for the Northern District of California ruled that Adobe's Utopia font software program is protectible by copyright and infringed by certain font products distributed by The Learning Company. Adobe believed the ruling would be extended in subsequent motions or at trial to the remaining 1168 fonts.

The Learning Company agreed to pay Adobe $2 million in damages representing profits, interest and reimbursement to Adobe of over $1 million in attorneys' fees and costs incurred in the case. The Learning Company also agreed to stop selling its 1250, 1555, 2002 and 3003 font products, and not to make, use, sell or offer to sell any font software program which renders a typeface which infringes any Adobe typeface design patent. The Learning Company has licensed the fonts at issue from Southern Software, Inc., which remains a defendant in the lawsuit.

"We are pleased to announce this settlement," said Paul Anderson, vice president, Type & Content, "and we are delighted to have vindicated our intellectual property rights and established that our font software programs are protected by copyright. Judge Whyte's ruling stands as a warning to all infringers that the fontsoftware programs of Adobe and other font developers, large and small, are protected by law, and the consequences of infringement can be severe."

"We are pleased to have settled this amicably with Adobe," said Neal S. Winneg, The Learning Company's sr. vice president and general counsel. "The products we have ceased selling represented less than $150,000 of revenue last quarter, and there will be no cash payment by or charge to the company for the settlement payment, which is fortunately within the limits of our insurance coverage."

The Learning Company, Inc. develops, publishes and markets a family of consumer software brands that educate across every age, from young children to adults. The company's products are sold in more than 23,000 retail stores in North America and through multiple distribution channels including school sales, on-line, direct marketing and OEM. The company also develops, publishes and distributes products worldwide including France, Germany, the United Kingdom, Holland and the Pacific Rim. The Learning Company is headquartered at One Athenaeum Street, Cambridge, MA, 02142; telephone (617) 494-1200; fax (617) 494-1219.

About Adobe Systems Incorporated
Founded in 1982, Adobe Systems builds award-winning software solutions for Web and print publishing. Its graphic design, imaging, dynamic media, and authoring tools enable customers to create, publish and deliver visually-rich content for various types of media. The company's products are used by Web and graphic designers, professional publishers, document-intensive organizations, business users, and consumers. Adobe is the fourth largest U.S.-based personal software company, with annual revenues approaching $1 billion. It employs over 2,400 employees worldwide and has operations in North America, Europe, the Pacific Rim, Japan and Latin America. Adobe's worldwide headquarters are in San Jose, California and its web site is located at www.adobe.com.