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MACROMEDIA ANNOUNCES STRATEGY FOR BUILDING eBUSINESS INFRASTRUCTURE
Building on Leadership in Web Authoring, Macromedia Broadens Scope to Provide Content Management, Analysis and Personalization Solutions

Fall Internet World '99, New York, NY—October 7, 1999—Macromedia, Inc. (NASDAQ: MACR) today unveiled its eBusiness Infrastructure strategy to provide the first comprehensive, integrated solution for content creation, content management, personalization and analysis of corporate Internet, intranet and extranet sites. The infrastructure delivers integrated solutions for every point on the Web content lifecycle. Macromedia's eBusiness Infrastructure solutions will allow enterprises to collaborate more efficiently, reduce time and resources to site deployment, lower costs, and analyze the return on investment of mission critical Web sites.

To deliver this strategy, Macromedia today announced: a merger with Andromedia, a leading provider of eMarketing software solutions for e-commerce; Project Whirlwind, a content management solution; and partnerships with leading delivery and solutions providers BroadVision and USWeb/CKS.

"We are delighted to be laying out our next logical step," said Rob Burgess, chairman and CEO of Macromedia. "Our leadership in content creation and Web development systems provides an outstanding market opportunity for us, as our customers are all facing increased complexity. By tightly integrating our current products with next-generation systems for content management, personalization and analysis, we believe we can deliver distinct competitive advantages for our customers."

"As our developers for Dreamweaver, Flash and Shockwave have become more successful, they have needed a more complete solution to realize their vision," said Kevin Lynch, senior vice president and general manager for Macromedia. "As they build larger and more mission critical sites, they need to work in teams and measure the effectiveness of their projects. With the eBusiness Infrastructure, our tools will build in business logic at the authoring level."

Macromedia is already the leader in Web authoring and content creation, with award-winning products for Web design and site production. Macromedia's eBusiness Infrastructure is designed to integrate with the leading Web and application servers from Allaire, BEA, BroadVision, IBM, Microsoft, the Sun-Netscape Alliance and Vignette.

Macromedia's eBusiness Infrastructure enables management of Web site production through four distinct phases: creation, management, personalization and analysis. These four areas have become critical as sites have grown from "brochureware" to simple e-commerce transactions to handling mission critical e-business. As a result, Web sites have become more complex to build, more people are involved in creating the site and contributing content, and companies are increasingly demanding proof of return on investment.

Industry support for Macromedia's eBusiness Infrastructure
BEA, KPMG, Microsoft and Sun Microsystems have pledged support for Macromedia's eBusiness Infrastructure, recognizing the benefits its customers will gain by standardizing on an integrated solution.

"We believe Macromedia is well positioned to leverage its Web development software into a suite of e-business products that will benefit our e-commerce customers," said Joe Menard, senior vice president of worldwide marketing for BEA Systems, Inc., The E-Commerce Transactions Company. "These products are an excellent complement to the BEA e-commerce transaction platform. While BEA is driving the transactions that mean business on the Web, Macromedia can help our customers manage their Web presence from content creation and management to rich experiences and performance measurement."

"Macromedia's eBusiness Infrastructure tackles head-on one of the key challenges that comes with building complex Web-based applications: ensuring that a personalized site can be produced, measured and evolved on an ongoing basis", said Keyur Patel, partner-in-charge of KPMG's e-commerce practice. "With both shockwave.com and macromedia.com as leading examples of the application of a leading-edge e-business infrastructure, Macromedia has demonstrated that it understands and is addressing these challenges. KPMG is pleased to be a partner in the evolution of this strategy."

"Macromedia's new authoring tools will integrate with the Windows DNA platform, enabling the creation of more personalized, interactive and measurable Web sites," said Tod Nielsen, vice president of Developer Marketing for Microsoft. "Tools from partners like Macromedia build on the existing Windows DNA services, allowing the developer to focus more time on their business logic."

"Macromedia's merger with Andromedia will provide an infrastructure that takes an innovative approach to content creation, real-time personalization and data analysis," said Doug Kaewert, Sun's VP of Worldwide Market Development. "Combining this infrastructure with Sun's Enterprise[TM] Server and Solaris[TM] Operating Environment delivers users a reliable, highly scalable and fully extensible solution which allows e-business to grow and meet ever increasing customer demand."

Project Whirlwind
Content management has become an arduous task, with Web sites evolving to meet the needs of e-commerce and e-business. Built on advanced technology licensed from Starbase, Macromedia's Project Whirlwind will be introduced to market next year. It will be a complete site production platform that enables content contribution, production management, content management, verification, and deployment. Users will be able to submit content, collaborate with others across the company, and control the delivery of information. With its open architecture, Project Whirlwind will work with existing enterprise infrastructures and will be able to handle dynamic content. It will also be tightly integrated with leading front-end Macromedia Web authoring solutions.

With its partners, the acquisition of Andromedia and the addition of Whirlwind, Macromedia now provides companies with the only complete and integrated eBusiness Infrastructure for creating, managing, personalizing and analyzing dynamic, engaging Web sites for the enterprise. As a result of the Macromedia eBusiness Infrastructure, companies will now be able to deploy Web applications more rapidly, manage collaboration across their company, and provide a more engaging and personalized, relevant customer experience leading to a higher return-on-investment from e-commerce and e-marketing initiatives.

ABOUT MACROMEDIA
Macromedia's mission is to add life to the Web. Our award-winning products empower developers to provide the most engaging experience on the Web and enable more effective e-business. Headquartered in San Francisco, Macromedia (NASDAQ: MACR) has more than 600 employees worldwide and is available on the Internet at http://www.macromedia.com.

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, impact of competition, the risk of delay in product development and release dates, the risk of integrating newly acquired technologies and products, quarterly fluctuations of operating results, risks of product returns, dependence on the Macintosh platform, the economic conditions in significant international markets, investments in new business opportunities 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, 1999 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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