SAN FRANCISCO, CA—January 22, 2003—Macromedia, Inc. (Nasdaq: MACR) today announced third quarter fiscal year 2003 results. Net revenues for the three months ended December 31, 2002 were $82.6 million, compared with net revenues of $73.3 million reported in the same period a year ago.

Net income for the three months ended December 31, 2002, was $10.8 million or $0.18 per diluted share, compared to a net loss of $42.9 million or $0.74 per share for the same quarter a year ago. Pro forma net income for the third quarter of fiscal year 2003 was $8.6 million, or $0.14 per diluted share, compared to a pro forma net loss of $10.0 million, or $0.17 per share for the third quarter of fiscal year 2002. See “Pro Forma Results” below for an explanation of pro forma adjustments.

“We are optimistic about the future and continue to bring great products to market that make it easier for everyone, not just web developers, to create compelling Internet experiences,” said Rob Burgess, chairman and CEO, Macromedia. “Experience matters, and great user experiences help build great businesses.”

Business Initiatives Update
In the past quarter, Macromedia has made advances across its three major business initiatives: design/development software, information convenience software, and mobile and device software.

Design/Development Software
Macromedia Studio MX generated strong revenue growth during the quarter. Since its introduction last June, 350,000 customers have purchased, making Macromedia Studio MX the fastest adopted product in the company's history. Macromedia Director MX, the most powerful multimedia authoring environment for building high-end, rich, interactive content and applications, joined the Macromedia MX product family with tight cross-product integration and Mac OS X support.

Macromedia also made several recent application server announcements. Macromedia ColdFusion MX, the rapid server scripting environment for creating rich Internet applications, is now available on the BEA WebLogic architecture. ColdFusion MX is also updated to support IBM WebSphere Application Server 5 and Sun ONE Application Server 7. Finally, Macromedia JRun 4 is the first commercial J2EE compatible application server to support Mac OS X.

Information Convenience Software
The Macromedia Information Convenience product family provides solutions that enable non-technical professionals to create and deliver great information experiences without deep technical training. The first product in this family, Contribute, began shipping in December. Contribute enables users to easily update web content with the ease-of-use of word processing, reducing website maintenance costs and removing barriers to information.

Last week, Macromedia announced the acquisition of Presedia, a leading provider of online presentation and e-learning solutions. The company’s Presedia Express product enables business users to take Microsoft PowerPoint presentations, annotate them with audio, and combine these two elements into a streaming Macromedia Flash application delivered via a hosted or licensed solution. These solutions leverage the market leadership position of Macromedia, broaden our addressable markets, and are immediately available.

Mobile and Device Software
Macromedia Flash Player is the most ubiquitous software client and is installed on more than 98 percent of Internet desktops. During the quarter, the new Sony CLIE NX-series devices began shipping with Macromedia Flash Player embedded in the device. The device is the first to feature Macromedia Flash Player on the Palm OS. Macromedia Flash Player is available on a multitude of platforms; to date, the company has more than 35 agreements with wireless device manufacturers, PDA’s and set-top box manufacturers.

Industry Awards
Macromedia products were recognized by a variety of organizations. These include:

• Technical Excellence Award, Macromedia Studio MX – PC Magazine
• Eddy Award: Web Publishing Software, Macromedia Flash MX – MacWorld
• Best Web Productivity Software, Dreamweaver MX – Personal Computer World (UK)
• 2002 – Best Web Publishing Tool, Dreamweaver MX – Mac User Awards (UK)
• 2002 – Best Web-Authoring Application, Dreamweaver MX – Mac Design Editors’ Choice Award
• Best Professional Multimedia Authoring Solution, Director MX – Presentations Magazine
• 2002 Best Web Content Creation Tool, Fireworks MX – MacUser Awards
• ISV of the Year, Mobile & Device Solutions – Microsoft Windows Embedded Group

Business Outlook – Fourth Quarter Fiscal Year 2003
For the quarter ending March 31, 2003, Macromedia expects revenues to be in the range of $80 to $85 million, with gross margins in the 88 to 90 percent range, and pro forma operating profit margin between 8 and 12 percent. The company expects expenses to increase somewhat as compared to the third quarter as the company invests in and promotes new product initiatives. For the fiscal year ending March 31, 2003, the company expects revenue to be in the range of $332 to $337 million and pro forma operating profit margin between 6 and 8 percent. These forward-looking statements are subject to risks and uncertainties discussed below and actual results may differ materially.

Pro Forma Results
Macromedia’s pro forma results for the three and nine months ended December 31, 2002 and 2001, differ from results reported under U.S. GAAP due to adjustments for the following items reported in its unaudited condensed consolidated results from operations:

• Non-cash charges for:
      ° Stock compensation
      ° Amortization and impairment of intangible assets
• Restructuring expenses
• Gain and loss on non-marketable investments
• Loss on equity affiliate
• Litigation settlement
• Gain on sale of acquired technology

Pro forma results for the three and nine months ended December 31, 2002 and 2001, reflect an assumed tax rate of 20 percent. See the attached reconciliation of GAAP and pro forma results.

Conference Call
Macromedia’s third quarter fiscal year 2003 financial results teleconference and simultaneous web cast is scheduled to begin at 2:30 p.m. Pacific Time/ 5:30 p.m. Eastern Time on Wednesday, January 22, 2003. To access the live web cast, please visit www.macromedia.com/MACR/ at least 30 minutes prior to the start of the conference call to download any necessary audio or plug-in software. A replay of the conference call will be available on the company’s website through February 5, 2003.

About Macromedia
Experience matters. Macromedia, Inc. is motivated by the belief that great experiences build great businesses. Our software empowers millions of business users, developers, and designers to create and deliver effective, compelling and memorable experiences – on the Internet, on fixed media, on wireless, and on digital devices.

Cautionary Note About Forward Looking Statements
Matters discussed in this news release may be considered forward looking statements, including those under the heading “Business Outlook” that relate to expected future financial results which 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 delays in product development and release dates, the economic condition in the domestic and significant international markets in which the company operates, dependence on the growth of the Internet, quarterly fluctuations of the operating results, the dependence on distributors and risks of product returns, volatility of the company’s stock and other risks detailed from time to time in the company’s SEC reports, including without limitation, its annual report on Form 10-K for the fiscal year ended March 31, 2002, and its quarterly reports on Form 10-Q, 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.

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