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Adobe Provides Business Update: Reaffirms Second Quarter Targets

Press release from the issuing company

SAN JOSE, Calif.---April 30, 2002--Adobe Systems Incorporated, the leader in network publishing, today announced that it will provide a business update during its mid-year financial conference call, which will be held today beginning at 2:00 p.m. Pacific Time. With more than four weeks remaining in its second fiscal quarter, which ends on May 31, Adobe believes it will achieve revenue and pro forma earnings per share within the target ranges it previously provided on March 14, 2002. The Company's second quarter target ranges are revenue of $305 to $325 million, and pro forma earnings per share of $0.24 to $0.27. In summarizing its Q2 performance to date, Adobe cited a strong initial launch of the English version of Adobe Photoshop 7.0 in mid-April, and said it expects the major non-English versions will also ship in the second quarter. From a geographic standpoint, Adobe stated that business in all of its major markets continues to be stable. Commenting on Adobe's business, Bruce R. Chizen, Adobe president and chief executive officer, stated, "We are executing against our strategic plan and Adobe is well-positioned for future growth. Our long-term addressable market growth rates continue to be high, and we believe Adobe can be a 20 percent or higher growth company after the economy fully recovers." Adobe also announced that the integration of recently acquired Accelio Corporation is on track. In addition to reducing headcount by approximately 200, Adobe is consolidating field offices and converting Accelio's former Ottawa headquarters into an Adobe development and support center. As part of the Accelio integration, Adobe expects to incur acquisition costs of approximately $12 million to $15 million, and a restructuring charge of approximately $1 million to $2 million, for severance and related costs in the second quarter. The Company plans to report its second quarter fiscal 2002 results on June 13, 2002 after the market closes.