Monday, February 10, 2003

MACROMEDIA STUDIO MX PLUS DELIVERS INTEGRATED DEVELOPER TOOLS

Special edition maximizes customers' ability to get more done with less

San Francisco–February 10, 2003–Macromedia, Inc. (Nasdaq: MACR) today announced Macromedia Studio MX Plus, a special edition of the award-winning suite of integrated tools that now includes Macromedia Freehand MX (announced today, see separate release), Macromedia Contribute, and Macromedia DevNet Resource Kit Special Edition at no extra cost. Macromedia Studio MX Plus helps customers leverage their existing investments and more efficiently create great user experiences in a time of smaller budgets and development teams. The $899 Macromedia Studio MX Plus, which replaces Macromedia Studio MX for Windows, is available for immediate download today from the Macromedia Online Store at www.macromedia.com/go/buystudiomxplus.

"Our customers are being asked to do more with fewer resources—to wear multiple hats, to deliver complex projects within tighter time frames, and to better leverage their existing investments," said Norm Meyrowitz, president of products, Macromedia. "This special edition of Macromedia Studio MX provides added value to help developers streamline their workflow so they can deliver great experiences more efficiently."

Since its introduction last June, more than 350,000 customers have purchased Macromedia Studio MX, making it the fastest adopted product in the company's history. Macromedia Studio MX includes Macromedia Dreamweaver, Macromedia Flash, Macromedia Fireworks, Macromedia FreeHand, and Macromedia ColdFusion MX Developer Edition.

Macromedia Studio MX Plus is a special commercial edition for Windows customers that also includes Macromedia Contribute, the easiest way to update content for any HTML website, and Macromedia DevNet Resource Kit Special Edition (which includes content from the previously-released Macromedia MX Developer Resource Kits Volume 1 and 2), containing extensions, components, and resources that make it easier to build web applications. For more information on Macromedia Studio MX Plus, visit www.macromedia.com/go/studiomxplus.

"The integration of Macromedia Flash and the entire Macromedia MX family means we at Sallie Mae can present our customers with single-view solutions," said Mark Overend, senior vice president, e-commerce, Sallie Mae. "This provides productivity gains—to both our development staff and our online customers—and translates into a win for everyone involved."

Macromedia Files Form 10-Q

San Francisco, CA—February 10, 2003—Macromedia, Inc. (Nasdaq: MACR) today filed its Form 10-Q with the Securities and Exchange Commission for the third quarter of fiscal year 2003. The Form 10-Q for the period ended December 31, 2002 reflects an adjustment to the company's financial results announced on January 22, 2003 resulting from a subsequent settlement of litigation with RLI Corporation pending since March, 2002. Consistent with Macromedia's policy of accounting for subsequent events, unaudited results of operations for the three-and-nine months ended December 31, 2002 reported on the company's Form 10-Q includes a litigation charge for this settlement of $2.5 million.

After reflecting this charge, net income reported on Form 10-Q for the three months ended December 31, 2002 was $8.3 million, or $0.14 per diluted share. For the nine months ended December 31, 2002, the company reported a net loss of $5.4 million, or $0.09 per share. Pro forma net income for the three- and nine-month periods ended December 31, 2003, previously announced by Macromedia on January 22, 2003, was unchanged as the settlement is classified as a one-time litigation charge.

MACROMEDIA DELIVERS FREEHAND MX

New version adopts streamlined user interface, increases Macromedia Flash MX integration

San Francisco–February 10, 2003–Macromedia, Inc. (Nasdaq: MACR) today announced the immediate availability of Macromedia FreeHand MX, the multi-publishing solution for conceptualizing and designing visually rich graphics for print, the Internet, and Macromedia Flash projects. FreeHand MX includes the streamlined Macromedia MX interface, new productivity tools and panels, improved Mac OS X performance, and increased integration with Macromedia Flash MX. Macromedia FreeHand MX is available for immediate download from the Macromedia Online Store at www.macromedia.com/go/buyfhmx.

"Macromedia FreeHand MX enables graphic designers to streamline their workflow and easily move from concept to design to production in a single file, multi-page environment, empowering them to meet today's needs of doing more with less," said Norm Meyrowitz, president of products, Macromedia. "Macromedia Freehand MX contains a powerful set of illustration and design tools to help users realize their creative vision, whether the end result is print, the web, or a Macromedia Flash MX project."

Macromedia FreeHand MX continues the product's rich heritage of solving design problems for graphic designers and illustrators by providing a streamlined workflow that enables users to create their artwork once and then easily repurpose it to work across multiple media. FreeHand MX provides everything necessary for storyboarding, creative design, multi-page document production, and editing.

"Working on deadline for a newspaper, we need to produce complex graphics quickly. The powerful new features of FreeHand MX make that task easier," said R. Scott Horner, assistant graphics director, South Florida Sun-Sentinel. "The live raster effects such as shadows on text and the support of transparent PNG images means our print graphics look even better—with little to no increase in our production time. This is a major upgrade."

The inclusion of the Macromedia MX user interface increases efficiency and productivity, by enabling users to work smoothly across Macromedia Studio MX applications. The new Object panel automatically shows all properties that can be inspected and changed for a selected object. Multiple Attributes enables users to apply and order an unlimited number of strokes, fills, and effects to a single vector or text object, which can also be used across multiple copies of an object. Users can also apply live vector and raster effects like bevel, blur, and transparency to objects, as well as quickly reshape graphic primitives while still maintaining their editability. Drag and drop ActionScript navigation commands with the Action tool simplify the creation of hot-linked graphics. Macromedia FreeHand MX is also optimized for Mac OS X to take advantage of the latest features and enhancements to Apple's operating system. For information on the new features in FreeHand MX, visit www.macromedia.com/go/fhmxnew.

In addition to the user interface enhancements, Macromedia FreeHand MX is tightly integrated with other Macromedia MX products. Users can import, place, and preview Macromedia Flash (SWF) files within a FreeHand document, and can edit the file in Macromedia Flash MX using the Object panel. FreeHand also imports Macromedia Fireworks MX PNG files and keeps the objects and text editable. Both Macromedia Flash MX and Fireworks MX can also directly open FreeHand MX files.

MACROMEDIA MX CUSTOMERS REALIZE BENEFITS OF INTEGRATED PRODUCT FAMILY

Circle, IOKIO, and Webvertising among leading developers using Macromedia MX to do more in less time

San Francisco—February 10, 2003—Macromedia, Inc. (Nasdaq: MACR) today announced that developers are creating groundbreaking customer, partner, and employee experiences with the Macromedia MX product family. Rich Internet applications from developers such as Circle, IOKIO, and Webvertising illustrate the business imperative that great experiences build great businesses.

Circle, a Macromedia Alliance partner, is a digital marketing agency that helps customers like IBM, Microsoft, MINI, and Volkswagen create ROI-driven online campaigns. For MINI (www.miniusa.com), Circle enables users to configure a custom car and then send their "personalized MINI" to the dealer network for delivery, using Macromedia Flash MX to update their choices in real-time.

"We wanted to convey the embodiment of the brand, unique design features, and motoring spirit to our technologically advanced users through a simple and engaging user experience," said Cyril Lemaire, consulting director, Circle. "We selected Macromedia Flash because we felt it was the best tool to achieve our objectives and effectively deliver deep information about the product substance, a sense of exploration, and the articulation of MINI's heritage in a fun and intuitive manner."

To further provide developers with the tools they need to create great experiences, Macromedia today shipped both Macromedia FreeHand MX (see separate release) and a special Windows edition of Macromedia Studio MX (see separate release), and announced Macromedia DevNet (see separate release), a new subscription service for developers.

"Macromedia is focusing its effort on helping people of all technical skill levels create great experiences," said Norm Meyrowitz, president of products, Macromedia. "With new products and a new subscription service, we are ensuring that everything we do makes our customer's lives easier and gives them more time to focus on their core development work."

BlueGreen Rentals (www.bluegreenrentals.com) is using Macromedia MX technologies to deliver a better experience for its vacation rental and hotel properties. Users can search the rental database for what type of vacation property interests them, and then complete the reservation using Webvertising's OneScreen technology.

"Once again, we used Macromedia Flash MX and ColdFusion MX to create a rich Internet application that dramatically improves the online reservations experience," said Jim Whitney, CTO, Webvertising, a Macromedia Alliance partner. "Visitors to Bluegreenrentals.com can now find and book a hotel room in six fewer screens than its HTML counterpart. Less waiting is a better experience, which means the guest is more likely to finish the reservation."

"We feel this new search and reservations system will help to significantly improve our conversion ratio," said Lani Liber, vice president of resort services, BlueGreen. "By presenting the user with alternative properties, if what they have selected is not available, we can replicate the cross-selling style used in our call center and deliver it to our users on the web. In combination with the OneScreen calendar that clearly shows what is available, we feel we will be able to convert visitors to sales much more quickly and frequently."

IOKIO built its digital camera finder (www.iokio.com/demos/camerafinder/) to showcase its Macromedia Flash development work. The application provides a simple one-page interface to quickly find digital cameras based on multiple criteria.

"We built the camera finder application to showcase the power of using Macromedia Flash MX to deliver intuitive new ways to view and compare products" said Edward Forbes, managing director, IOKIO. "Compared with the web forms and tables used by many commerce sites, this visual, intuitive application clearly provides a better experience."

"With its MX products, Macromedia is enabling developers to create highly interactive, communicative, and refreshingly distinctive web experiences that allow a company to use the web to serve its customers in new or greatly enhanced ways," said Joshua Duhl, contributing analyst, IDC.

MACROMEDIA UNVEILS MACROMEDIA DEVNET, NEW SOFTWARE SUBSCRIPTION SERVICE

Top-tier developers benefit from constant connection to Macromedia software and resources

San Francisco–February 10, 2003–Macromedia, Inc. (Nasdaq: MACR) today announced Macromedia DevNet Subscriptions, bringing developers and enterprises an easy way to get the technologies and resources they need to create and deliver great digital experiences. DevNet Subscriptions is strategic as it builds on the strong existing relationships Macromedia has with its key developers and provides them with additional administrative and development value. Macromedia DevNet offers a comprehensive set of tools, servers, extensions, components, and other resources over a one-year annual subscription period. Leading developers and companies including OgilvyInteractive, Molecular, and Werner Enterprises are among the first DevNet subscribers. For more information, visit www.macromedia.com/devnet/subscriptions/.

The subscription service enables companies to more easily predict the cost of equipping developers with the technology and resources they need. The service also features a personalized subscriber portal that helps reduce administrative overhead and manage software licenses. Subscribers can download their products, upgrades, extensions, and components through the portal and have them mailed on CD.

"DevNet Subscriptions is an important step for Macromedia, because it enables us to have a more substantive relationship with our top developers," said Norm Meyrowitz, president of products, Macromedia. "DevNet gives developers access to software, upgrades, and resources that saves them time by removing the barriers to purchasing, upgrading, and maintaining software."

The subscriptions service is available in two levels, Professional and Essentials.

Macromedia Devnet Professional is the premium subscription level that provides developers with the ideal way to realize the benefits of Macromedia Studio MX and the new Macromedia Studio MX Plus (announced today, see separate release) by providing the same software products, as well as additional resources and upgrades delivered throughout the subscription. DevNet Professional includes single-user perpetual licenses to Macromedia Dreamweaver, Macromedia Contribute (Windows only), Macromedia Flash, Macromedia Fireworks, Macromedia FreeHand, and fully-functional, development-only licenses of all Macromedia server products. This service also includes two technical support incidents per subscription term.

"We help clients such as Fleet Boston, Yankee Candle, and Showtime Networks optimize their businesses through the innovative use of Internet technology. Our mission is to provide our clients with measurable benefits that we can help them forecast and realize, and the more productive measures we can bring to the picture, the better," said Darryl Gehly, vice president of corporate development, Molecular, a Macromedia Alliance partner. "Macromedia DevNet Professional gives us a constant connection to Macromedia for the latest products, components, extensions, and sample applications. It not only reduces the need for purchasing approval for each subsequent product and upgrade, but also gives us a constant lifeline to resources to help deliver applications more efficiently."

"We are committed to delivering the best of our global network to the brands of our clients across all media," said Mel Bellar, chief technology officer, OgilvyInteractive. "We are enthusiastic about Macromedia DevNet Professional as it provides us with a simple, convenient, and economical mechanism to keep current with the latest software and upgrades from Macromedia. It will also allow us to maintain our edge in applying breakthrough solutions as soon as they are available. We are very excited about the Macromedia MX family in general as an overall development environment and solution for effective interfaces and applications on the web."

Subscribers also get three months advance access to the quarterly DevNet Resource Kits (DRKs), which bundle components and extensions to make development with Macromedia products easier and more efficient. Macromedia DRKs, introduced as Macromedia MX Developer Resource Kits, have been extremely successful, with developers noting the value of the content including the Macromedia Flash Datagrid, usability components, Dreamweaver extensions, and sample application code.

Macromedia DevNet Essentials complements a developer's existing Macromedia Studio MX tools with an annual subscription that provides advance access to the quarterly DevNet Resource Kits (DRKs).

The DevNet website rounds out the service. Formerly known as the Designer & Developer Center, this free site is designed to help Macromedia professionals increase their technical proficiency and features more than 400 articles, sample applications, tips, tricks, and tutorials, with 20-30 new pieces of content added each month. The site also hosts an active community where developers trade tips and tricks of the trade.