Adobe Reaffirms Q4 FY2009 Financial Targets

Adobe Systems Incorporated (Nasdaq:ADBE) today provided an intra-quarter business update for its fourth quarter ending Nov. 27, 2009.

With approximately eight weeks remaining in the quarter, Adobe announced it believes it will achieve quarterly results within the revenue and earnings target ranges it provided on Sept. 15, 2009. The Company’s Q4 target ranges are the following: revenue of $690 to $740 million, GAAP diluted earnings per share of $0.23 to $0.29, non-GAAP diluted earnings per share of $0.33 to $0.39, a GAAP operating margin of 23 to 27 percent, and a non-GAAP operating margin of 33 to 36 percent.

A reconciliation between the Company’s GAAP and non-GAAP financial targets is provided at the end of this press release. The fourth quarter financial targets do not include the impact of Adobe’s acquisition of Omniture announced Sept. 15, 2009, which is expected to close in the fourth quarter of Adobe’s 2009 fiscal year.

Adobe plans to report its fourth quarter results on Dec. 15, 2009 after the market closes.

Company to Outline Business Strategy at Financial Analyst Meeting

Adobe’s management team will discuss its vision and business strategy at its 2009 Financial Analyst Meeting, which will be held today in Los Angeles, CA. The meeting will be broadcast live in Adobe Acrobat Connect Pro from Adobe’s Website (http://www.adobe.com/go/analystmeeting) beginning at 11:30 a.m. Eastern Time. For those unable to attend the meeting or watch the Webcast, an archive of the event will be available on Adobe’s investor relations Website 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, failure to develop, market and distribute new products or upgrades to existing products that meet customer requirements, introduction of new products and business models by existing and new competitors, failure to successfully manage transitions to new business models and markets, difficulty in predicting revenue from new businesses, costs related to intellectual property acquisitions, disputes and litigation, inability to protect Adobe’s intellectual property from third-party infringers, or unauthorized use, disclosure or malicious attack, failure to realize the anticipated benefits of past or future acquisitions and difficulty in integrating such acquisitions, failure to manage Adobe’s sales and distribution channels effectively, disruption of Adobe’s business due to catastrophic events, risks associated with international operations, fluctuations in foreign currency exchange rates, changes in, or interpretations of, accounting principles, impairment of Adobe’s goodwill or intangible assets, changes in, or interpretations of, tax rules and regulations, Adobe’s inability to attract and retain key personnel, impairment of Adobe’s investment portfolio due to deterioration of the capital markets, market risks associated with Adobe’s equity investments, and interruptions or terminations in Adobe’s relationships with turnkey assemblers. For further discussion of these and other risks and uncertainties, individuals should refer to Adobe’s SEC filings.

The financial information set forth in this press release reflects estimates based on information available at this time. 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.

© 2009 Adobe Systems Incorporated. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

The following tables show the Company’s fourth quarter fiscal year 2009 non-GAAP financial targets reconciled to GAAP financial targets included in this release.

Adobe continues to provide all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, Adobe uses non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. Adobe’s management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Adobe presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate Adobe’s operating results in a manner that focuses on what Adobe believes to be its ongoing business operations. Adobe’s management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes the stock-based and deferred compensation impact, restructuring charges, amortization of purchased intangibles and technology license arrangements, the resolution of an income tax audit, investment gains and losses, and the related tax impact of all of these items, the income tax effect of the non-GAAP pre-tax adjustments from the provision for income taxes, and the non-GAAP measures that exclude such information in order to assess the performance of Adobe’s business and for planning and forecasting in subsequent periods. Whenever Adobe uses such a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed above.