For Immediate Release
Adobe Systems Reports Second Quarter Fiscal 2002 Results

Company Meets Targets With 18 Percent Sequential Revenue Growth; Sees Second Half Year-Over-Year Growth

SAN JOSE, Calif., (June 13, 2002) (Nasdaq: ADBE)—Adobe Systems Incorporated, the leader in network publishing, today reported financial results for its second quarter ended May 31, 2002.

In the second quarter of fiscal 2002, Adobe achieved revenue of $317.4 million, compared to $344.1 million reported for the second quarter of fiscal 2001 and $267.9 million reported in the first quarter of fiscal 2002. Pro forma diluted earnings per share for the second quarter of fiscal 2002, which does not include restructuring and other charges, acquired in-process research and development, amortization of goodwill and purchased intangibles, and investment gains and losses, were $0.27. Adobe's revenue and pro forma earnings per share results met the Company's original second quarter targets announced in March.

"Despite a continuing soft economy, we had a solid quarter with a strong release of Photoshop," said Bruce R. Chizen, president and chief executive officer of Adobe. "Strategically, we took steps to realize the large Acrobat opportunity in the enterprise with the closure of our Accelio acquisition and our new SAP relationship."

GAAP net income was $54.3 million for the second quarter of fiscal 2002, compared to $61.3 million reported in the second quarter of fiscal 2001, and $49.8 million in the first quarter of fiscal 2002. Pro forma net income, which excludes restructuring and other charges, amortization of goodwill and purchased intangibles, acquired in-process research and development, and investment gains and losses, was $67.4 million for the second quarter of fiscal 2002, compared to $84.5 million in the second quarter of fiscal 2001, and $52.8 million in the first quarter of fiscal 2002.

GAAP diluted earnings per share for the second quarter of fiscal 2002 were $0.22, based on 247.7 million weighted average shares. This compares with diluted earnings per share of $0.25 reported in the second quarter of fiscal 2001, based on 250.1 million weighted average shares, and diluted earnings per share of $0.20 reported in the first quarter of fiscal 2002, based on 245.2 million weighted average shares.

Excluding restructuring and other charges, the amortization of goodwill and purchased intangibles, acquired in-process research and development, and investment gains and losses, Adobes pro forma operating profit was $96.4 million in the second quarter of fiscal 2002, compared to $121.5 million in the second quarter of fiscal 2001 and $72.7 million in the first quarter of fiscal 2002. As a percent of revenue, pro forma operating profit for the second quarter was 30.4 percent, compared to 35.3 percent in the second quarter of fiscal 2001 and 27.1 percent in the first quarter of fiscal 2002.

For the third quarter of fiscal 2002, the Company announced that it is targeting revenue of $300 to $320 million, a gross margin of 92 percent, and a pro forma operating margin of 28 to 30 percent. As a percent of revenue, Adobe is targeting expenses as follows:

Research & Development—approximately 20 to 21 percent

Sales & Marketing—approximately 33 to 34 percent

General & Administrative—approximately 9 to 10 percent

In addition, Adobe is targeting its share count range to be between 249 and 251 million shares in the third quarter of fiscal 2002. The Company is also targeting other income to be approximately $3 million, and a tax rate of 32 percent. These targets lead to a pro forma earnings per share target range in the third quarter fiscal 2002 of $0.24 to $0.27 per share.

For the fourth quarter of fiscal 2002, the Company announced that its preliminary financial targets were revenue of $315 to $345 million, and pro forma earnings per share of $0.26 to $0.29.

The Adobe Board of Directors declared this quarter's cash dividend of $0.0125 per share, payable on July 8, 2002 to stockholders of record as of June 25, 2002.

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: adverse changes in general economic conditions in any of the major countries in which the Company does business, including the recent slow-down affecting the United States, Europe, Japan, and potentially other geographic areas; continuing adverse economic impact of the recent national tragedy on September 11, 2001; delays in shipment of our new products and major new versions of existing products; corporate reductions in marketing expenditures which may result in lower demand for professional content creation and layout products; lack of market acceptance of new products and upgrades; delays or problems associated with the integration of acquisitions; introduction of new products by major competitors; weakness in demand for application software and printers; lack of growth in worldwide personal computer and printer sales and downward sales price adjustments; renegotiation of royalty/licensing arrangements; litigation; consolidation in the OEM printing business; ongoing weakness in our printer business due to product transitions; industry transitions to new business and information delivery models; and market risk associated with our equity investments. For further discussion of these and other risks and uncertainties, individuals should refer to the Company's SEC filings, including the 2001 annual report on Form 10-K and quarterly reports on Form 10-Q to be filed in 2002. The Company does not undertake an obligation to update forward-looking statements.

About Adobe Systems Incorporated

Founded in 1982, Adobe Systems, Incorporated (www.adobe.com), the leader in network publishing, offers a comprehensive line of software for enterprise and creative professional customers. Its products enable customers to create, manage and deliver visually rich, compelling and reliable content. Based in San Jose, Calif., Adobe is one of the world's largest software companies, with annual revenues exceeding $1.2 billion.

Condensed Consolidated Statements of Income
Condensed Consolidated Balance Sheets
Pro Forma Results

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2002 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, Acrobat, and Photoshop 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:
Investor Relations

Mike Saviage
Adobe Systems Incorporated
408-536-4416
ir@adobe.com
http://www.adobe.com

Public Relations:
Holly Campbell
Adobe Systems Incorporated
(408) 536-6401
campbell@adobe.com

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