For Immediate Release
Adobe Settles Dispute with Trio Systems

Preliminary Injunction Involving Adobe InDesign 1.5 and InCopy 1.1 Dissolved

SAN JOSE, Calif., (Dec. 20, 2001) (Nasdaq: ADBE)—Adobe Systems Incorporated, the leader in network publishing, today announced that it has entered into an agreement to settle a lawsuit brought by Trio Systems involving Adobes InDesign 1.5 and InCopy 1.1 products. The settlement resolves both Trios claims and Adobes counter-claims of fraud and copyright misuse, ensures Adobes continuing right to include C-Index in those products, and dissolves the injunction recently entered by the court. The suit was filed on October 24, 2001 in federal court in Los Angeles.

Adobe is very pleased with this result, and expects no material impact from it to the Company's financial results. Terms of the settlement are confidential. This is a situation that never belonged in court, said Ray Campbell, Senior Corporate Counsel for Adobe. We are pleased that we were able to resolve it on a more informal basis.

Neither InDesign 2.0, which will be released in Adobes first quarter of fiscal 2002, nor InCopy 2.0, which will be released soon after, include C-Index. Both new versions of the products were beyond the scope of the lawsuit or injunction.

Key Adobe customers and service providers worldwide are making plans to integrate and support InDesign 2.0 in anticipation of the new features and enhanced performance this product provides.

About Adobe Systems Incorporated

Founded in 1982, Adobe Systems Incorporated (www.adobe.com) builds award-winning software solutions for network publishing, including Web, ePaper, print, video, wireless and broadband applications. Its graphic design, imaging, dynamic media and authoring tools enable customers to create, manage and deliver visually-rich, reliable content. Headquartered in San Jose, Calif., Adobe is the second-largest PC software company in the U.S., with annual revenues exceeding $1.2 billion.

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© 2001 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, InDesign and InCopy are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

Press/Analyst Contacts:
Holly Campbell
Adobe Systems Incorporated
408-536- 6401
campbell@adobe.com


Investor/Financial Analyst Contact:
Mike Saviage
Adobe Systems Incorporated
408-536-4416
ir@adobe.com

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