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Adobe Launches Premiere Elements 7 with Photoshop.com Membership

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New Version of Best-Selling Consumer Video Software Extends Capabilities to the Web

SAN JOSE, Calif. — Aug. 26, 2008 — Adobe Systems Incorporated (Nasdaq:ADBE) today announced Adobe® Premiere® Elements 7 software with new Photoshop.com membership. Available for Windows®, this landmark upgrade to the No. 1 selling consumer video-editing software* features easy to use movie making options so users can create compelling stories in minutes, while also offering opportunities to grow and stretch their editing abilities. For the first time, Adobe Premiere Elements 7 customers will have the option to sign-up for one year of membership on Photoshop.com, extending the capabilities of the software by providing new movie themes, sound effects, music, overlays, menu templates and helpful tutorials on a regular basis. Other benefits include: automatic online backup and storage of photos and videos and access from virtually anywhere.

In addition, Adobe today announced Adobe Photoshop® Elements 7 software, a complete photo-editing solution (see separate press release). Available separately or together in a single retail package, Adobe Photoshop Elements & Adobe Premiere Elements bundle give photo and video enthusiasts everything they need for the complete digital imaging experience.

“With the explosion of video on social networking and sharing sites, it should be quick, easy and effortless to transform raw video into polished movies worth showing off via YouTube or your own website,” said Doug Mack, vice president and general manager of Consumer and Hosted Solutions at Adobe. “Premiere Elements 7 gives users Hollywood techniques to do just that, with virtually no effort required. The addition of Photoshop.com membership provides cinematic inspiration and the ability to set up screenings anywhere of videos packed with knockout effects.”

Transform Video Clips into Hollywood-Style Movies in Minutes

Adobe Premiere Elements 7 allows people to produce their own blockbuster with no experience required. The software intelligently analyzes each movie clip (including those in the newly-supported AVCHD format) for quality, number of faces, sound and more. It then applies Smart Tags so users can quickly find the best clips in seconds. InstantMovie creates professional-looking movies with a simple drag and drop of a theme onto a series of video clips. It adds a package of music, titles and transitions based on a theme such as birthday, wedding or extreme sports.

With new Videomerge, users can exercise their imagination by creating videos that make it appear as if they’re performing on stage at a concert, standing in front of a popular tourist attraction or walking on the moon. Videomerge allows users to easily create a “green screen” effect and automatically place themselves within the scene, without requiring any prior video editing skills or knowledge.

Users can display their finished movies on high-quality DVD or high-definition Blu-ray Disc, on any screen from a mobile phone to an HD flat screen TV, or upload directly to YouTube from within Premiere Elements.

New Membership on Photoshop.com Offers Inspiration and Access Virtually Anywhere

Users can push their creativity even further with Photoshop.com membership, offered in two levels, Basic1 and Plus2. For those who want fresh, creative project ideas delivered straight to the desktop, the option to purchase an annual Photoshop.com Plus membership guarantees new cinematic inspiration will come on a regular basis. Tutorials, movie themes, special effects and seasonal templates are delivered directly to the software, ensuring users always have new creative ideas and themes to create impressive results. In addition, Photoshop.com Plus membership provides 20GB of storage - enough for 15,000 photos, four hours of DVD-quality videos or a combination of both. Online back-up keeps memories safe from computer failure or natural disaster, with access from anywhere, via a personal account linked to the software. Photoshop.com Basic membership can be experienced for free, providing 2GB of storage and access to photos and videos virtually anywhere.

More information about Photoshop.com membership can be found at www.adobe.com/products/premiereel/membership/ .

Pricing and Availability

Adobe Photoshop Elements 7 and Adobe Premiere Elements 7 for Windows will be available in local retail outlets such as Best Buy, Circuit City, Costco (Photoshop Elements 7 only), Office Depot, Office Max and Staples in October 2008. Consumers can pre-order the products at www.adobe.com , www.amazon.com , www.bestbuy.com and www.costco.com . The products will be available separately for US$99.99. Photoshop Elements 7 & Premiere Elements 7 bundle also will be available for US$149.99.

Photoshop.com Plus membership will be available for purchase from within the products for US$49.99 and Basic membership can be experienced for free. Information about other language versions, as well as pricing, upgrade and support policies for other countries is available at www.adobe.com/go/premiereelements . Photoshop.com membership is available in the U.S. only.

*Source: The NPD Group / Retail Tracking Service (January 2007 to April 2008) based on units sold in the Video and Photo Editing Categories. Combined units sold for Adobe Premiere Elements and Adobe Photoshop Elements & Adobe Premiere Elements Bundle (North America).

1. Photoshop.com Basic membership does not require the purchase of any Adobe product, including Photoshop Elements 7 and Premiere Elements 7.

2. With Photoshop.com Plus membership, annual membership terms apply.

About Adobe Systems Incorporated

Adobe revolutionizes how the world engages with ideas and information - anytime, anywhere and through any medium. For more information, visit www.adobe.com.

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© 2008 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, Adobe Premiere, and Photoshop are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Windows is either a registered trademark or trademark of Microsoft Corporation in the United States and/or other countries.

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Contacts

Cari Gushiken
Adobe Systems Incorporated
408-536-6392

Sherry Shen
A&R Edelman
650-762-2907