San Jose, Calif., At its Fall 2000 Financial Analyst meeting today in San Jose, Adobe Systems Incorporated will announce that it has updated its operating model targets for fiscal year 2001. The Company will increase its operating margin target from 31 percent to 32 percent in fiscal 2001 based on a decrease in expected research & development expenses from 20 percent to 19 percent of revenue. At today's meeting, Adobe management will provide the financial community and those watching via a live Webcast an update on its business, and outline a vision for the Company's future over the next three to five years. "For the fourth quarter of fiscal 2000, we are reaffirming our revenue and operating profit guidance we gave at our third quarter earnings call. This includes 25 percent year-over-year revenue growth, and a 31 percent operating profit margin," said Murray Demo, Adobe senior vice president and CFO. Bruce Chizen, Adobe's president, will lay the foundation for the Company's growth in the coming years by leading a presentation which provides details around opportunities being driven by key market trends and Adobe's focus on Network Publishing. "Network Publishing - the third wave of publishing following desktop and traditional web publishing - provides Adobe with long-term, sustainable growth opportunities," said Chizen. "Through our development of industry leading products, support of open standards, and partnerships with key Network Publishing providers, we will enable the creation of visually rich content that is managed and delivered reliably, anywhere, anytime, on any device." The Company also will announce that it is maintaining its target for at least 25 percent revenue growth in fiscal 2001, when compared to fiscal 2000. In addition, company management will provide the following revenue guidance for fiscal 2001: Fiscal year 2001 year-over-year revenue targets First half fiscal 2001 At least 25 percent growth Second half fiscal 2001 At least 25 percent growth Third quarter fiscal 2001 20-25 percent growth Fourth quarter fiscal 2001 25-30 percent growth Fiscal year 2001 market segment year-over-year revenue targets Web Publishing segment Approximately 30 percent growth Cross-Media Publishing segment Approximately 10 percent growth(formerly Print Publishing segment) ePaper Solutions segment Approximately 65 percent growth OEM PostScript & Other segment Approximately 10 percent decline Total application segment growth Approximately 30 percent growth(excludes OEM PostScript & Other) Adobe also will give guidance for Other Income and Average Share Count for fiscal 2001. The Company is targeting approximately $5 million per quarter of Other Income, and an increase of approximately 3-4 million average shares per quarter in fiscal 2001.