SAN FRANCISCO, CA—January, 16, 2002—Macromedia (NASDAQ:MACR) today announced third fiscal quarter 2002 results. Revenues for the quarter ended December 31, 2001 were $73.3 million, compared with pro forma revenues of $99.0 million reported in the same quarter a year ago. Pro forma net loss was $10.0 million, or a loss of $0.17 per share, for the third fiscal quarter 2002, compared with pro forma net income of $20.2 million, or diluted earnings per share of $0.36 for the same period in the prior year.

Revenues for the nine months ended December 31, 2001 totaled $249.1 million, compared with pro forma revenues of $287.4 million for the nine-month period a year ago. Pro forma net loss for the nine-month period was $22.0 million, or a loss of $0.38 per share, compared with pro forma net income of $58.5 million, or diluted earnings per share of $1.03, for the nine months ended December 31, 2000.

On a GAAP basis, net loss for the third fiscal quarter 2002 was $42.9 million, or a loss of $0.74 per share, compared with net income of $12.8 million, or diluted earnings per share of $0.23, for the same period last year. Net loss for the nine months ended December 31, 2001 on a GAAP basis was $225.4 million, or a loss of $3.89 per share, compared with net income of $35.1 million, or diluted earnings per share of $0.62 per share, for the same period last year.

"The economy continues to affect our short term results, but not our optimism about the future," said Rob Burgess, Macromedia chairman and chief executive officer. "We are focused on delivering a major new product cycle that will empower our customers to realize the promise of the next-generation of the Internet."

Business Outlook
The Company said that it expects revenues for the fourth fiscal quarter 2002 to be sequentially flat.
The Company also said that it would continue its focus on operational efficiencies, and expects to
return to profitability in the June quarter.

Pro Forma Results
Macromedia's pro forma results for the three and nine months ended December 31, 2001 and 2000 differ from reported results in accordance with GAAP due to adjustments for the following items reported in its unaudited consolidated results from operations:

Pro forma results for three and nine months ended December 31, 2001 reflect a benefit from income taxes. This represents an effective tax rate of 20 percent. Recognition of this tax benefit results from the expected utilization of tax loss carryforwards generated in fiscal year 2002 to offset taxable income in future periods. Pro forma results for the three and nine months ended December 31, 2000 reflect an effective tax rate of 19 percent.

Conference Call
Macromedia will host a conference call today to discuss third fiscal quarter 2002 results at 2:30pm PT /5:30 pm ET. A live Webcast of the conference call can be accessed at www.macromedia.com/MACR/. A replay of the conference call will be available on the Web site until February 15.

Except for the historical information contained herein, matters discussed in this news release may be considered forward looking statements that involve risks and uncertainties, including those related to customer acceptance of new products and services and new versions of existing products, the risk of integrating newly acquired technologies and products, the impact of competition, the risk of delay in product development and release dates, the economic conditions in the domestic and significant international markets, quarterly fluctuations of operating results, risks of product returns, risks associated with investment in international sales operations, and the other risks detailed from time to time in the Company's SEC reports, including without limitation its quarterly reports on Form 10-Q and its annual report on Form 10-K for the year ended March 31, 2001 as they may be updated or amended with future filings. The actual results the Company achieves may differ materially from any forward looking statements due to such risks and uncertainties.

About Macromedia
Macromedia is passionate about what the Web can be. Its award-winning products empower designers and developers to efficiently create and deliver the most engaging experiences on the Web, and enable innovative Internet business applications. Headquartered in San Francisco, Macromedia (NASDAQ: MACR) has more than 1,400 employees worldwide and is available on the Internet at www.macromedia.com.

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