For Immediate Release
Adobe Delivers Ultimate Digital Camera Companion with Photoshop Elements 2.0

Powerful New Features Give Photo Enthusiasts a Digital Darkroom for Editing and Sharing Photos

SAN JOSE, Calif. — July 15, 2002 (NASDAQ: ADBE) — Adobe Systems Incorporated, the leader in network publishing, today announced Adobe® Photoshop® Elements 2.0 software, with new features that simplify the process of editing digital photos. Adobe Photoshop Elements 2.0 is designed specifically for photo hobbyists and amateur photographers who want to enhance their digital images for printing, emailing or posting to the Web.

As digital camera sales increase and technology becomes more affordable, photo enthusiasts are looking for new ways to improve their digital photos. According to the April NPD Intelect report on retail software, Photoshop Elements is emerging as the leading mid-range photo-editing software, with more than 60 percent unit share in the United States.

"Digital camera unit sales in North America are expected to grow to 18.7 million by 2007. Within this period, most digital camera users will desire easy-to-use tools for image editing and photo printing," said Michelle Slaughter, digital photography analyst at InfoTrends Research Group. "Photoshop Elements 2.0 offers a powerful feature set that is easy to use."

Based on extensive customer research and feedback, key enhancements to Photoshop Elements 2.0 give users easier access to the tools they need to be more efficient and creative with their photos. Users can apply common lighting and color correction in a single dialog window while viewing the original side-by-side with the modified version. Instant access to help files and "how to" recipes is readily available by typing key words such as "red-eye" into a help window on the toolbar. With one-step to resize and attach images, sharing photos via email is now much easier; and a new file browser lets users preview, sort and organize images in thumbnail form — all without opening the files.

Photoshop Elements 2.0 gives users superior editing capabilities with new color correction, compositing and creative tools. The Color Variations feature now includes helpful tips and an updated design, giving the user a preview of real-time color adjustments prior to applying. The new Selection Brush masks unwanted areas of a photo for precise editing. New paintbrush options simulate oils, watercolors, charcoal, pastels, and different canvas textures so users can add creative touches to their photos. Also, users can capture individual frames from video clips, which are saved as still images for editing and sharing electronically.

Photoshop Elements solves the common problem of sharing multiple photos. Users can now create slideshows in Adobe Portable Document Format (PDF) that can be displayed on any device that supports the Adobe Acrobat® Reader®software. This includes Palm handhelds, Pocket PC and any system running the Windows® or Mac operating system.

Photoshop Elements 2.0 supports the leading operating systems, including Windows XP and Mac OS X.

Pricing and Availability

In the United States, Canada, and Europe, Adobe Photoshop Elements 2.0 is expected to ship in the third quarter of 2002. The estimated street price is US$99 for all platforms. Registered users of Adobe Photoshop Elements 1.0, Photoshop LE, PhotoDeluxe®, or selected digital imaging software products are eligible to receive a US$30 mail-in rebate. Photoshop Elements will be available for sale on Adobe.com as well as retail stores, including Best Buy, B&H Photo, Circuit City, CompUSA, Fry's Electronics, J&R Music and Computer World, MicroCenter, Office Max, Office Depot and Staples. Information about the other language versions, as well as pricing, upgrade, and support policies for other countries is available on www.adobe.com. For more information, customers can call 1-800-492-3623.

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.

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© 2002 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, Acrobat Reader, PhotoDeluxe, and Photoshop are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Mac is a trademark of Apple Computer, Inc., registered in the U.S. and other countries. Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks are the property of their respective owners.

Press/Analyst Contacts
Layla McHale
Adobe Systems Incorporated
408-536-2250
lmchale@adobe.com

Ian Bain
A&R Partners
650-762-2806
ibain@arpartners.com