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Adobe Systems Reaffirms Q1 Financial Targets


Company to Outline Business Strategy at Financial Analyst Meeting.

SAN JOSE, Calif. — January 31, 2006 — Adobe Systems Incorporated (Nasdaq: ADBE) today is providing its regular intra-quarter business update for its first quarter of fiscal 2006, which ends March 3, 2006.

With approximately five weeks remaining in the quarter, Adobe announced it believes it will achieve quarterly results within the financial targets it provided on December 15, 2005. The Company’s Q1 FY2006 target ranges are the following: revenue of $630 to $660 million, GAAP earnings per share of $0.13 to $0.16, non-GAAP earnings per share of $0.28 to $0.30, a GAAP operating margin of 15 to 19 percent, and a non-GAAP operating margin of 35 to 36 percent.

In its update, the Company indicated it is experiencing solid demand in its major geographic markets.

The Company plans to report its first quarter fiscal 2006 results on March 22, 2006 after the market closes.

Adobe Reaffirms Fiscal 2006 Annual Financial Targets

Adobe also announced today it is reaffirming its financial targets for fiscal year 2006. The Company said it continues to target fiscal 2006 annual revenue of approximately $2.7 billion, with a GAAP annual operating margin target range of approximately 20 to 23 percent, and a non-GAAP annual operating margin target range of approximately 36 to 37 percent.

The Company’s fiscal 2006 financial targets assume a stable economic environment, as well as the retroactive extension of the research and development tax credit.

Company To Outline Business Strategy at Financial Analyst Meeting

Adobe’s management team plans to discuss its business strategy at its 2006 Financial Analyst Meeting, which will be held today in New York, NY. The meeting will be broadcast live from Adobe’s Website ( beginning at 10:00 a.m. Eastern Time. For those unable to attend the meeting or watch the Webcast, an archive of the event will be available on for a limited time.

Forward Looking Statements Disclosure

This press release contains forward looking statements, including those related to revenue, operating margin and earnings per share, which involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: adverse changes in general economic or political conditions in any of the major countries in which Adobe does business, delays in development or shipment of the Company’s new products or major new versions of existing products, introduction of new products by existing and new competitors, failure to successfully manage transitions to new business models and markets, difficulty in predicting revenue from new businesses, failure to anticipate and develop new products in response to changes in demand for application software, computers and printers, intellectual property disputes and litigation, inability to protect the Company’s intellectual property from unauthorized copying, use, disclosure or malicious attack, failure to realize the anticipated benefits of past or future acquisitions and difficulty in integrating such acquisitions, changes to the Company’s distribution channel, disruption of the Company’s business due to catastrophic events, interruptions or terminations in the Company’s relationships with turnkey assemblers, risks associated with international operations, fluctuations in foreign currency exchange rates, changes in accounting rules and regulations, impairment of the Company’s goodwill or intangible assets, unanticipated changes in tax rates, the Company’s inability to attract and retain key personnel, and market risks associated with the Company’s equity investments. For further discussion of these and other risks and uncertainties, individuals should refer to the Company’s SEC filings, including the 2004 annual report on Form 10-K and quarterly reports on Form 10-Q filed in 2005. The Company 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

First Quarter and Fiscal Year 2006 GAAP to Non-GAAP Reconciliation
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