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Macromedia Reports First Quarter Fiscal Year 2006 Results

Net income increases 17% on 13% revenue growth

San Francisco, CAJuly 20, 2005Macromedia, Inc. (Nasdaq: MACR) today reported financial results for its fiscal first quarter ended June 30, 2005. Net revenues for the quarter were $116.8 million, a 13 percent increase compared to the $103.6 million reported for the same period last year.
GAAP net income for the fiscal first quarter was $15.2 million, or $0.19 per diluted share, compared to $13.0 million, or $0.17 per diluted share, for the same quarter a year ago. Non-GAAP net income for the fiscal first quarter was $18.1 million, or $0.22 per diluted share, compared to $13.7 million, or $0.18 per diluted share, for the same quarter a year ago. Non-GAAP results exclude $4.3 million in expenses associated with the proposed Adobe merger, as outlined in the attached consolidated statements and related reconciliation. Non-GAAP results for the first fiscal quarters ended June 30, 2005 and 2004, also reflect an estimated annual tax rate of 20 percent, reflecting U.S. federal and state income taxes and foreign taxes at rates other than U.S. statutory rates.

Private Equity Fund Of Funds "I am very proud that Macromedia has once again delivered record revenue results," said Stephen Elop, CEO, Macromedia. "Our market strategy, with its focus on the Flash Platform, is clearly resonating, as evidenced by the continued success around Breeze, Flex, and mobile."

For fiscal year 2006, Citrix reported annual revenues of $1.134 billion, compared to $909 million in 2005, a 25% increase. For fiscal year 2007, the company expects net revenues to be around $1.31 billion. For the first quarter of 2007, Citrix reported revenues of $308 million, compared to $260 million in the first quarter of 2006, an 18% revenue growth.

Curve Equity Exposed Fund Business Outlook Second Quarter Fiscal Year 2006

Stamps.com Reports Third Quarter 2003 Financial Results Revenue Up 32% Year over Year; Customer Acquisition Momentum Builds SANTA MONICA, October 29, Stamps.com™ ( STMP) today announced financial results for the third fiscal quarter ended September 30, 2003. Third quarter revenue was up 32% versus the same quarter last year, and up 7% versus the second fiscal quarter of 2003. In addition, the company reported an increase in customer acquisition during the third quarter, particularly with higher value Power Plan customers.

Equity Income Funds For the quarter ending September 30, 2005, Macromedia expects net revenues to be in the range of $120 to $125 million, with gross margins in the 91 to 93 percent range and operating profit margin between 17 and 19 percent, excluding certain merger-related costs.
Conference Call

d) The adjusted amounts exclude a $7.5 million, or $0.12 per diluted share, tax accrual recorded on the repatriation of dividends from European subsidiaries in the fourth quarter of fiscal year 2005. On May 10, 2005, the U.S. 38. The notice provided for a tax benefit, which was recorded by the Company in the first quarter of fiscal year 2006, that fully offset the tax accrued by the Company on foreign dividends in fiscal year 2005. Neither the first quarter fiscal year 2006 tax benefit nor the corresponding fourth quarter fiscal year 2005 tax accrual had cash impact to the Company. In addition, month period ending April 30, 2006, the adjusted amounts above also exclude a $6.8 million, or $0.11 per diluted share, tax benefit recorded in fiscal year 2006 related to the settlement of certain matters with tax authorities.

Capital Casebook Equity Macromedia's first quarter of fiscal year 2006 financial results will be discussed in a Macromedia Breeze presentation available at http://www.macromedia.com/macr/. In addition, a teleconference is scheduled to begin at 2 pm Pacific Daylight Time / 5 pm Eastern Daylight Time on Wednesday, July 20, 2005. After the conclusion of the teleconference, a replay of the conference call will be available on the Company's website.
Special Stockholders Meeting on August 24, 2005

Adjusted EBITDA in the first quarter of fiscal 2006 was $14.4 million, a 19% increase compared to $12.1 million in the first quarter of fiscal 2005. A reconciliation of Cash Flow from Operations, which was $5.9 million and $9.0 million in the first quarters of fiscal years 2006 and 2005, respectively, to Adjusted EBITDA can be found in the tables accompanying this press release.

Private Investment In Public Macromedia also today announced that it will hold a Special Meeting of Stockholders at 3 pm Pacific Daylight Time on Wednesday, August 24, 2005, to vote on the Company's previously announced merger with Adobe Systems Incorporated (Nasdaq: ADBE). A joint proxy statement/prospectus will be mailed on or about July 22, 2005, to Macromedia stockholders of record as of July 19, 2005. All Macromedia stockholders of record as of July 19, 2005, are entitled to vote on the transaction. Macromedia stockholders are urged to read the joint proxy statement/prospectus as it contains important information regarding the proposed merger. Macromedia anticipates that the transaction will close in fall 2005, subject to approvals by Macromedia and Adobe stockholders, appropriate regulatory approvals, and the satisfaction of other closing conditions.
About Macromedia

GAAP adjusted net income for the second quarter of fiscal 2006 was $8.4 million, an increase of 11% GAAP adjusted net income for the second quarter of fiscal 2005 of $7.5 million, remaining constant at $0.38 per diluted share. GAAP adjusted EBITDA in the second quarter of fiscal 2006 was $13.7 million, a 6% increase compared to $13.0 million in the second quarter of fiscal 2005. GAAP adjusted EBITDA is provided in the notes to the financial statements included in this press release.

Equity Mutual Funds Experience matters. Macromedia is motivated by the belief that great experiences build great businesses. Our software empowers millions of business users, developers, and designers to create and deliver effective, compelling, and memorable experiences on the Internet, on fixed media, on wireless, and on digital devices.
Cautionary Note About Forward-Looking Statements

Birmingham Contact Equity Matters discussed in this news release may be considered forward-looking statements, including those under the heading "Business Outlook" that relate to expected future financial results which involve risks and uncertainties. Such risks and uncertainties include those related to the pending merger with Adobe Systems Incorporated, customer acceptance of new products and services and new versions of existing products, the impact of competition, the risk of delays in product development and release dates, the risk of not attracting and retaining key personnel, new regulations and other government actions that may materially increase the cost of compliance and doing business, risks associated with participating in international markets (including, but not limited to, foreign policies, market instability, exchange rate fluctuation, and regulations in the applicable foreign countries), quarterly fluctuations of the Company's operating results, the Company's dependence on distributors and resellers, the risk of product returns, the challenges faced in protecting the Company's intellectual property within and outside the US, the risks associated with potential litigation and intellectual property ownership claims against the Company and others in the industry, volatility of the Company's stock, and other risks detailed from time to time in the Company's filings with the SEC including, without limitation, its annual report on Form 10-K and its quarterly reports on Form 10-Q, 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.
Additional Information and Where to Find It

Private Equity Investment Firm Adobe Systems Incorporated has filed a registration statement on Form S-4, and Adobe and Macromedia, Inc. have filed a related joint proxy statement/prospectus, in connection with the merger transaction involving Adobe and Macromedia. Investors and security holders are urged to read the registration statement on Form S-4 and the related joint proxy/prospectus because they contain important information about the merger transaction. Investors and security holders may obtain free copies of these documents and other documents filed with the SEC at the SEC's website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Adobe by contacting Adobe Investor Relations at 408-536-4416. Investors and security holders may obtain free copies of the documents filed with the SEC by Macromedia by contacting Macromedia Investor Relations at 415-832-5995.

Complying Deal Equity Funds Adobe, Macromedia, and their directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Adobe and Macromedia in connection with the merger transaction. Information regarding the special interests of these directors and executive officers in the merger transaction is included in the joint proxy statement/prospectus of Adobe and Macromedia described above. Additional information regarding the directors and executive officers of Adobe is also included in Adobe's proxy statement for its 2005 Annual Meeting of Stockholders, which was filed with the SEC on March 14, 2005. Additional information regarding the directors and executive officers of Macromedia is also included in Macromedia's proxy statement for its 2005 Annual Meeting of Stockholders, which was filed with the SEC on June 20, 2005. These documents are available free of charge at the SEC's website at www.sec.gov and from Investor Relations at Adobe and Macromedia as described above.
Non-GAAP Financial Measures

Equity Msn Private Wyoming Macromedia prepares its financial statements in accordance with accounting principles generally accepted in the United States (GAAP) and adjusts some of its GAAP measures to create non-GAAP financial measures. For purposes of presenting our non-GAAP net income, we exclude certain merger-related costs and apply a non-GAAP annual tax rate of 20% reflecting our estimated tax expense on our core operations. Our non-GAAP financial measures may be considered in addition to, but are not to be used as a substitute for, the GAAP information contained in our financial reporting. The non-GAAP financial measures we use are likely to be different from, and not comparable to, non-GAAP financial measures used by other companies.

American Equity Investment Macromedia's management uses non-GAAP financial measures for its internal performance management and budgeting processes. Macromedia believes that the non-GAAP financial measures provide useful insight into the performance of the business by eliminating the impact of nonrecurring and unusual items that are recorded under GAAP. The non-GAAP financial measures have limitations compared to GAAP measures because they exclude charges that often have a material impact on the Company's GAAP operating expenses, net earnings, and diluted earnings per share calculations. To compensate for these limitations, Macromedia's management typically uses non-GAAP measures in conjunction with GAAP results.

Equity Index Funds Macromedia believes that presenting the non-GAAP results with an accompanying reconciliation to GAAP results provides investors with an additional tool for evaluating the ongoing performance of our business, without the influence of certain nonrecurring expenses. Macromedia believes the non-GAAP financial measures may be useful to investors in helping them understand the financial condition of Macromedia by focusing on the performance of the Company's core operations. The non-GAAP financial measures are presented by Macromedia to give investors further information about historical and expected results and increase their ability to compare financial information from period to period.

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