ADOBE AND MACROMEDIA SETTLE PATENT LITIGATION

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.