MACROMEDIA ANNOUNCES FREE FLASH PLAYER SOURCE CODE
Extends Flash Standard to Next-Generation of Web-Enabled Devices, Bringing High-Impact Flash Interfaces to all Online Consumers

San Francisco, Calif. - Macromedia International User Conference '99—May 24, 1999—Macromedia, Inc. (NASDAQ: MACR) today announced plans to license at no charge the source code for its popular Flash Player for inclusion in upcoming hardware and software platforms.

Already installed in more than 100 million Web browsers according to a recent third party study, Flash is the Web's most widely distributed interactive media player and the standard format for high impact, vector-based Web sites. Many leading companies, including Citibank, PepsiCola, DaimlerChrysler, and Nestle are using Flash to create beautiful, effective sites. In addition, several key platform providers, such as Microsoft, Apple, Netscape Communications Corp., America Online, @Home Network, WebTV, and Real Networks include Flash with currently shipping products. This list is growing, as established powerhouses such as Sega and newcomers including wireless Internet appliance start-up Qubit plan to include the Flash Player in upcoming devices.

Because of its small code footprint, compact file size, broad distribution, and unique scalability, the Flash Player is ideal for displaying Web content on both desktop machines and Internet appliances. Today's announcement means that any future browser, platform, and Web-enabled device can offer Flash playback capabilities. As a result, developers can focus on designing high-quality Flash content once and know that it will perform flawlessly across the range of supported platforms. Consumers will enjoy bandwidth-efficient, attractive Flash interfaces on any device from which they choose to access the Internet.

"Moving to a free licensing model for the Flash Player source is significant for both Macromedia and the industry," said Rob Burgess, chairman and CEO of Macromedia. "A new Web infrastructure is emerging as new devices and services - both broadband and narrowband - must deliver compelling experiences to an exploding number of Web consumers. By making the Flash Player source freely available and working closely with our partners such as @Home, Real Networks, and Apple, we will make it easy for everyone to view high-impact Flash interfaces, animations and interactive programming."

"As a company committed to open standards, Sun supports Macromedia's decision to make the Flash player source code freely available to the multimedia developer community," said Jon Kannegaard, vice president and general manager of the Java Platform at Sun Microsystems' Java Software. "Sun looks forward to applications from innovative developers who blend the power of our Java™ media API's into the Flash Player environment."

"Our designers are always looking for technologies to improve the effectiveness of our service," said Josef Mandelbaum, vice president of Interactive Marketing at American Greetings. "Now that the Flash Player is installed in nearly all of the browsers, we are basing our next-generation greeting cards on Flash. It gives us interactivity and design richness that simply wasn't possible before. With the source now available for free, other platforms will embrace it, expanding our market and our reach."

A TREND TOWARD FLASH UBIQUITY
The Flash Player is already the Web's most widely distributed interactive media player. A recent study by research firm King, Brown, & Partners indicated that approximately 77 percent of Web consumers, or more than 100 million people, can currently view Flash content without needing to download a plug-in.

In 1998, Macromedia published the specifications for the Flash file format, enabling any vendor to create software applications that output Flash content. Today's move takes Flash ubiquity a step further by allowing all platform and device designers to incorporate the ability to play Flash content in future versions of browsers, operating systems, portals, and devices.

Macromedia is preparing a Flash Software Development Kit (SDK), which will be available later this year at www.macromedia.com. Until then, developers wishing to license the Flash Player code should email flash_source@macromedia.com.

ABOUT MACROMEDIA
Macromedia's mission is to add life to the Web. By providing its award-winning Web Publishing, Web Entertainment, and Web Learning solutions to Web designers, consumers, and the enterprise, Macromedia is delivering a completely new generation of Internet tools and technologies designed to transform the Web experience. Headquartered in San Francisco, Macromedia (NASDAQ: MACR) has more than 500 employees worldwide and is available on the Internet at http://www.macromedia.com.

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