Macromedia Acquires Mobile Innovation

Macromedia to strengthen global mobile business

Bracknell – October 20, 2005 - Macromedia, Inc. (Nasdaq: MACR) today announced that it has completed the acquisition of Mobile Innovation, a leading user interface (UI) designer, developer, and integrator for mobile devices. With extensive relationships throughout the mobile industry and an impressive track record of innovation, Mobile Innovation has deep expertise in the world of mobile UI design and implementation. As a result of the acquisition, Macromedia will further its ability to innovate in the mobile domain, providing customers and partners with customizable world-class solutions for delivery of mobile applications and content built on the Flash Platform.

The acquisition will create a mobile consulting practice for Macromedia and will form part of the Macromedia Consulting team in EMEA. The acquisition follows a strategic partnership formalised in January, under which Mobile Innovation would create and develop a range of concept user interfaces for handset manufacturers and network operators that demonstrate the advantages of using Macromedia Flash Lite to create innovative mobile UI design.

Founded in 2002, Mobile Innovation brings significant experience in mobile software development to Macromedia through its work with the entire value chain and associated technology. Mobile Innovation customers include the world’s leading handset manufacturers, network operators, and semiconductor suppliers. The company has been instrumental in the creation of many devices based on Symbian OS (Series 60, Series 80, Series 90, and UIQ) that are shipping today. Mobile Innovation will integrate into the Macromedia Consulting team, led by Peter Lelliott. Matt Millar, Mobile Innovation co-founder and CTO, will lead the Mobile and Devices practice for Macromedia in EMEA. Mobile Innovation was advised in this transaction by Clarity Capital Partners.

Steve Miller, vice president of Macromedia EMEA, says, “We are thrilled to welcome Mobile Innovation to Macromedia, and we believe this will add tremendous value to our mobile business. Through Mobile Innovation’s solid background in creation and integration of custom UIs for operators and handset manufacturers alike, we can drive an even greater mobile ecosystem, as well as further enable our customers to build value and great digital experiences on the Flash Platform.”

Matt Millar of Mobile Innovation says, “We are extremely excited to be part of Macromedia. The combination of both companies ensures that all our customers can reap the benefits of leading technology, engineering, and UIs. Now, as part of Macromedia, we can continue to innovate and deliver next-generation solutions to meet our customers’ needs.”

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