San Jose, Calif., (November 8, 1999) (Nasdaq:ADBE)--Adobe Systems Incorporated and Reciprocal™ today announced an effort to enable publishers to secure content for distribution and sale via the Internet. The two companies will work together to focus on the integration and mutual interoperability of their respective digital rights management (DRM) technologies and services. Their cooperation is expected to benefit end-users interested in purchasing and downloading business reports, books, articles and analyst reports, many of which are not currently available due to copyright protection concerns among publishers. As a result, both companies expect to increase the amount of high-quality electronic content available through the Internet.

The technology integration will include Adobe® PDF Merchant™ and Acrobat® Reader with Web Buy software, and Reciprocal’s highly scalable DRM clearinghouse services. Reciprocal’s DRM services include rights enforcement and clearing, information and financial clearing, tracking, reporting services and 24/7 customer support. Adobe PDF Merchant and Acrobat Reader with Web Buy was developed to enable publishers to easily leverage the content they maintain in Adobe Portable Document Format (PDF).

"We are very excited to work with Adobe as this is a significant step in our ongoing efforts to enable the publishing industry to safely and profitably distribute their digital content," said Reciprocal CEO and President, Paul Bandrowski.

Adobe participated in Reciprocal’s recent pilot test, along with Houghton Mifflin Company and Follett Higher Education Group, using the InterTrust DRM technology to digitally distribute educational courseware at SUNY Buffalo. In the pilot that occurred this summer, Houghton Mifflin and Follett aggregated the content, while Reciprocal packaged it in secure containers using the Adobe Portable Document Format (PDF). Reciprocal selected Adobe PDF because it is a robust and viable format for representing graphically rich electronic documents and publications, and for allowing documents to be viewed on a wide variety of platforms.

Added Matt Moynahan, general manager and senior vice president of Reciprocal Publishing, "The combination of Adobe’s publishing industry expertise and DRM technology with Reciprocal’s value-added digital clearing services will provide publishers a powerful and easy way to securely sell and distribute their high-quality text and graphics over any electronic media, while insuring that users have a positive and satisfying experience as they purchase, download and consume the content on-line"

"Adobe is interested in working with leading companies that will help give publishers, distributors and retailers an easy and secure route to distributing and selling documents over the Internet," said Joe Eschbach, vice president, ePaper® Solutions Group, Adobe Systems Incorporated. "Teaming with Reciprocal was an obvious choice, as they have taken a leadership position in helping firms make the transition to the Internet marketplace. As electronic distribution and sale of information comes into prominence, Adobe is committed to integrating a broad range of components, standards and technologies that accommodate new business models, flexible distribution channels and the ability to deliver high-quality content over the Internet."

About Adobe PDF Merchant and Web Buy
Adobe PDF Merchant software is a server-based technology designed to be integrated into existing ecommerce and transaction servers. It manages encryption of PDF files and the distribution of keys to access them. To provide consumers with a mechanism for purchasing and viewing electronic content produced using Adobe PDF Merchant, Adobe is implementing a Web Buy feature within its free Acrobat Reader software. Together, the new technologies will give publishers, distributors, retailers and consumers the capability to securely exchange electronic content. Acrobat Reader with Web Buy will be available in Q4 1999 and Adobe PDF Merchant in Q1 2000. The pre-release of the Acrobat Reader with Web Buy and a demo of the buying experience including downloadable electronic content is available today at www.adobe.com.

About Reciprocal
Reciprocal (www.reciprocal.com) combines its digital rights management knowledge, and publishing and music industry experience with robust back-office services including highly scalable informational and financial clearinghouse services. These services are enabled by desktop software, which allows publishers and/or their distributors to easily and securely package digital content, and gives consumers the necessary tools to acquire and manage rights and to consume secure content. Its publishing division was formed in June 1999. Reciprocal Publishing is a member of both the Open eBook Initiative and the EBXTM Electronic Book Exchange, two bodies developing common standards for electronic books. Reciprocal’s DRM service is built to work with the DRM platform technology that best suits customers’ needs, and is currently available on the platform technologies of Microsoft Corp. and InterTrust Technologies Corporation.

Privately held, Reciprocal has received funding from Microsoft Corp. and Reuters Group Plc, as well as from venture capitalists Adams Capital Management, Chase Capital Partners, Constellation Ventures, Flatiron Partners, SOFTBANK Technology Ventures, Venrock Associates, XDL Capital Corporation, and Web Ventures. The Company maintains offices in New York City, Buffalo, and Research Triangle Park, NC.

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include but are not limited to, delays in the shipment of Adobe’s products and/or failure to execute a definitive agreements capturing the parties intent described herein.

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.