World's Best-Selling Consumer Photo-Editing Software Sets New Standards for Image Import, WYSIWYG Output and Feature Delivery Over the Web

San Jose, Calif., (August 3, 1998) (Nasdaq: ADBE) -- Adobe Systems Incorporated today announced Adobe® PhotoDeluxe® Home Edition 3.0 software, the latest version of the world's best-selling consumer photo-editing software. With hundreds of guided activities and templates for nearly every conceivable home project and new, free features and content every month that download from the Web, even the most photographically challenged will find it easy to transform a below-average snapshot into a treasured memento for family and friends.

Based on Adobe Photoshop®, the world standard photo design and production tool for professionals, this latest version of Adobe PhotoDeluxe offers home users state-of-the art technology that was once only accessible to graphic design professionals using high-end software products. Additional new capabilities include:

• a sophisticated, but user-friendly color management system for brilliant output
• a simplified way to import photos into the computer
• an array of special effects to transform photos into works of art including the ability to create panoramic views
• the ability to save and print photo creations in standard sizes, post photos to a web page, attach photos to an e-mail message as a multimedia slide show, or export photos to another file format

PhotoDeluxe Home Edition is also the only photo-editing software on the market that continually renews itself with a built-in cache of seasonal activities for making everything from Halloween stickers to Thanksgiving menus to holiday greeting cards and gift tags. Geared around events at which people are most likely to take pictures, these projects are automatically triggered by the computer's clock, giving the user a message that the seasonal activity is available.

Easy-to-Follow Guides for Quick Results
Home users who have internet access can use the unique Adobe Connectables™ feature to download additional projects and content every month, as well as get tips, new templates and clip art from Adobe and other partners such as Avery.

PhotoDeluxe users will find a wide variety of special effects with which to enhance their treasured photos. They can select a sepia tint or romantic impressionist enhancement for an heirloom photo; or, they might turn to a library of changeable clip art to create a personalized greeting card. Unlike ordinary clip art, this collection can be "morphed" to meet the needs of any creative project. For example, the image of a tiger can be changed from cunning to cuddly, or from artistic to cartoonish -- all with a click of a mouse.

More Ways than Ever to Enhance Photos
The newest version of Photo Deluxe Home Edition is packed with the most cutting-edge technology, giving users even more options for creative, fun and high-quality results. For example, using Smoothmove® technology from Infinite Pictures, users can now "stitch" together photos to create panoramic views. The Callisto Photo Parade feature allows users to package photos in an entertaining presentation that is themed for different occasions, such as a child's birthday party. Downloading images from a digital camera has been greatly simplified with the FotoNation Explorer software from FotoNation, Inc. The Eye Fidelity Tools™ technology from DVP Technologies™ removes unwanted noise, moire patterns and artifacts from digitized images. Storm's Easy Photo Organizer makes it easy to store and organize photos using visual thumb-nail size views, eliminating the need to remember how photos were labeled or where they were filed. Finally, to help create the best looking photo projects, PhotoDeluxe users will find Extensis' Intellihance the most fool-proof way to "clean-up" photos -- for example, brighten underexposures, or improve the contrast -- in one click of the mouse.

"Adobe has successfully leveraged its core graphics technology to develop a consumer photo-editing product that really works for the mass market. PhotoDeluxe Home Edition will only strengthen Adobe's position in the consumer market," said Suzanne Snygg, an industry analyst for Dataquest.

Pricing and Availability
Adobe PhotoDeluxe Home Edition 3.0 will be available at retail stores in North America in September 1998, at an estimated street price of $49. Upgrades from PhotoDeluxe 1.0 and 2.0 to the new Home Edition will be $39. Adobe PhotoDeluxe Home Edition 3.0 runs on Microsoft® Windows® 98, Microsoft Windows® 95, and Microsoft Windows NT Workstation 4.0