SAN JOSE, Calif. and SAN FRANCISCO, Calif.—July 29, 2002—Adobe Systems Incorporated (Nasdaq: ADBE), and Macromedia, Inc. (Nasdaq: MACR), today announced that they have reached a settlement agreement on all litigation between the two parties. The terms of the settlement are confidential. Customers with products from either Adobe or Macromedia will not be affected.

About Macromedia
Macromedia (www.macromedia.com) empowers millions of designers and developers to create effective user experiences across the widest array of platforms and devices. Through an open, integrated family of client, tool, and server technologies, Macromedia is driving a new generation of rich Internet applications that will radically improve the Internet experience.

About Adobe Systems Incorporated
Founded in 1982, Adobe Systems Incorporated (www.adobe.com), the leader in network publishing, offers a comprehensive line of software for enterprise and creative professional customers. Its products enable customers to create, manage and deliver visually rich, compelling and reliable content. Based in San Jose, Calif., Adobe is one of the world's largest software companies with annual revenues exceeding $1.2 billion.