Adobe Extends Video Software Offerings with Acquisition of Serious Magic

PRESS RELEASE

Future Adobe Products Set to Gain from Integration of Award-Winning Video Technologies

SAN JOSE, Calif. — Oct. 19, 2006 — Adobe Systems Incorporated (Nasdaq:ADBE) today announced it has acquired Serious Magic Inc.â„¢, mak­er of video soft­ware and com­mu­ni­ca­tions tools for cre­ative pro­fes­sion­al, busi­ness, con­sumer, and edu­ca­tion mar­kets. With Serious Magic solu­tions such as DV Rack extend­ing direct-to-disk record­ing and mon­i­tor­ing into the field and Visual Communicator and Vlog Itâ„¢ deliv­er­ing the pow­er of video com­mu­ni­ca­tion to gen­er­al busi­ness users and casu­al blog­gers, the acqui­si­tion strength­ens Adobe’s lead­er­ship posi­tion in video soft­ware – for both video pro­fes­sion­als and consumers.

“The huge momen­tum behind Flash® Video, which is pow­er­ing every­thing from online TV shows to YouTube and MySpace, is turbo-charging Adobe’s video business,” said John Loiacono, senior vice pres­i­dent of Creative Solutions Business Unit at Adobe. “The pur­chase of Serious Magic accel­er­ates our vision to make, not just video but all dynam­ic media, an even more ubiq­ui­tous com­mu­ni­ca­tions vehi­cle, whether you’re deliv­er­ing con­tent for the broad­cast mar­ket, over the web or on mobile devices.”

Adobe plans to con­tin­ue to sell Serious Magic’s prod­ucts and future ver­sions of Adobe’s video solu­tions will include Serious Magic tech­nolo­gies and soft­ware. Terms of the acqui­si­tion were not disclosed. 

“Adobe video prod­ucts and Flash Video are cre­at­ing new ways to inte­grate the mov­ing image into almost every imag­in­able com­mu­ni­ca­tion project,” said Mark Randall, CEO and Chief Magician at Serious Magic. “We’re proud of the cutting-edge work we’ve done at Serious Magic and believe that team­ing with Adobe will be a tru­ly mag­i­cal com­bi­na­tion enabling our award-winning tech­nolo­gies to have a last­ing impact on video communications.”

Randall, a twenty-year video indus­try vet­er­an, will join Adobe as chief strate­gist, Dynamic Media.

Serious Magic is a pri­vate­ly held com­pa­ny head­quar­tered in Folsom, California and cur­rent­ly ships sev­er­al widely-acclaimed prod­ucts, includ­ing DV Rack, ULTRAâ„¢ 2, Ovationâ„¢, Visual Communicator and Vlog It. Adobe believes this acqui­si­tion will not have a mate­r­i­al finan­cial impact on the company.

Forward Looking Statements Disclosure
This press release con­tains for­ward look­ing state­ments, includ­ing those relat­ed to future prod­uct devel­op­ment plans, which involve risks and uncer­tain­ties that could cause actu­al results to dif­fer mate­ri­al­ly. For a dis­cus­sion of these and oth­er risks and uncer­tain­ties, indi­vid­u­als should refer to Adobe’s SEC fil­ings. Adobe does not under­take an oblig­a­tion to update for­ward look­ing statements.

About Adobe Systems Incorporated
Adobe rev­o­lu­tion­izes how the world engages with ideas and infor­ma­tion – any­time, any­where and through any medi­um. For more infor­ma­tion, vis­it www​.adobe​.com .