Exhibit 99-1

For Immediate Release

Adobe Systems Reports Record Revenue and Operating Profit for Third Quarter of Fiscal 1999

Company Announces Two-For-One Stock Split

San Jose, Calif., (September 16, 1999) (NASDAQ:ADBE) — Adobe Systems Incorporated today reported financial results for its third quarter ended September 3, 1999.

For the third quarter, Adobe achieved record revenue of $260.9 million, compared to $222.9 million reported for the third quarter of fiscal 1998 and $245.9 million reported in the second quarter of fiscal 1999. This represents a 20.6% increase in year over year revenue growth when taking into consideration revenue from businesses divested in fiscal 1998.

Operating profit for the third quarter was $72.0 million, compared to an operating loss of $6.1 million in the third quarter of fiscal 1998, and operating profit of $51.5 million in the second quarter of fiscal 1999.

Excluding restructuring and other charges, Adobe's record operating profit in the third quarter of fiscal 1999 was 29.3% of revenue, compared to 14.3% in the third quarter of fiscal 1998 and 27.2% last quarter.

Net income for the third quarter of fiscal 1999 was $57.2 million, compared to $152,000 reported in the same quarter of fiscal 1998 and $45.0 million in the second quarter of fiscal 1999.

Diluted earnings per share for the third quarter of fiscal 1999 were $0.88 based on 64.8 million weighted average shares. This compares with diluted earnings per share of $0.00 reported in the third quarter of fiscal 1998, based on 68.4 million weighted average shares and diluted earnings per share of $0.70 reported in the second quarter of fiscal 1999, based on 64.1 million weighted average shares. Excluding restructuring and other charges, and excluding investment gains and losses from the Company's venture programs, diluted earnings per share for the third quarter of fiscal 1999 were $0.80.

Application products revenue for the third quarter of fiscal 1999 was $230.7 million, compared to $182.1 million for the same quarter of fiscal 1998, and $209.7 million for the second quarter of fiscal 1999. Licensing revenue for the third quarter of fiscal 1999 was $30.2 million, compared to $40.8 million in the same quarter of fiscal 1998 and $36.2 million in the second quarter of fiscal 1999.

"Our third quarter was outstanding — one in which Adobe set a record for revenue and operating profit. This performance demonstrates that the company has exceeded its product and operational goals," said John E. Warnock, chairman and chief executive officer of Adobe.

The Company's record results continue to be attributed to its strong offering of Web publishing solutions, along with the shipment of Adobe Photoshop® 5.5 in the quarter, and the continued success of Adobe® Acrobat®. In addition, Adobe released its much anticipated professional page layout program, Adobe InDesign™. With the largest backlog for a new product in Adobe's history, the Company is now shipping the product in volume.

"Adobe InDesign, GoLive™, Photoshop and Illustrator®, combined with other Adobe products, provide a complete creative environment for the professional Web and print publisher. We have a strong product portfolio as we head into the next millenium," said Bruce R. Chizen, executive vice president of worldwide products and marketing.

In regard to next year, Warnock added, "Our preliminary business plan for fiscal year 2000 includes annual revenue growth of 20% over fiscal year 1999, with an annual operating margin of 30%."

The Company also announced that a two-for-one stock split, in the form of a stock dividend, will occur on October 26, 1999 for stockholders of record on October 4, 1999.

The Adobe Board of Directors declared this quarter's cash dividend of $0.05 per share, payable on October 12, 1999 to stockholders of record as of September 28, 1999.

This press release contains forward-looking statements that 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: lack of market acceptance of new products and upgrades; delays in shipment of the Company's new products and major new versions of existing products; introduction of new products by major competitors; ongoing weakness in the Company's printing business due to product transitions; industry transitions to new distribution, business and information delivery models; adverse economic conditions in any of the major countries in which the Company does business, and Year 2000 issues. For further discussion of the risks and uncertainties, readers should refer to the Company's SEC filings including the 1998 annual report on Form 10K and the quarterly reports on Form 10Q filed by the Company in 1999.

About Adobe Systems Incorporated

Founded in 1982, Adobe Systems is a leading provider of graphic design, publishing, and imaging software for Web and print production, and the fourth largest U.S. based personal software company with annual revenues approaching $1 billion. The Company builds award-winning software solutions for Web and graphic designers, professional publishers, document-intensive organizations, business users, and consumers. Adobe's products enable customers to create, publish and deliver visually-rich images and documents across all print and electronic media. Adobe's worldwide headquarters are in San Jose, California and its web site is located at www.adobe.com.

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(c) 1999 Adobe Systems Incorporated. All rights reserved. Adobe, Acrobat, GoLive, Illustrator, InDesign, Photoshop, and the Adobe logo are trademarks of Adobe Systems Incorporated. All other trademarks are properties of their respective owners.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except for per share data)

	Three Months Ended					Nine Months Ended
	Unaudited September 3 1999		Unaudited August 28 1998			Unaudited September 3 1999		Unaudited August 28 1998
Revenue:
Licensing	$	30,151	$	40,825		$	104,416	$	125,132
Application products		230,725		182,107			629,248		522,923
Total revenue		260,876		222,932			733,664		648,055
Direct costs		24,267		23,369			70,470		76,742
Gross profit		236,609		199,563			663,194		571,313
Operating expenses:
Research and development		48,023		48,979			140,550		141,731
Sales and marketing		84,864		84,125			242,826		240,749
General and administrative		27,354		34,619			82,136		97,512
Restructuring and other charges		4,417		37,940			19,757		38,505
Total operating expenses		164,658		205,663			485,269		518,497
Operating income (loss)		71,951		(6,100	)		177,925		52,816
Nonoperating income, net:
Investment gain		13,151		215			27,145		12,489
Interest and other income		4,926		6,127			16,065		22,217
Total nonoperating income, net		18,077		6,342			43,210		34,706
Income before income taxes		90,028		242			221,135		87,522
Provision for income taxes		32,873		90			80,743		32,646
Net income	$	57,155	$	152		$	140,392	$	54,876
Basic net income per share	$	.94	$	.00		$	2.31	$	.82
Shares used in computing basic net income per share		60,948		67,278			60,672		67,271
Diluted net income per share	$	.88	$	.00		$	2.18	$	.80
Shares used in computing diluted net income per share		64,829		68,412			64,479		68,850

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for per share data)

	Unaudited September 3 1999			Audited November 27 1998
ASSETS
Current assets:
Cash and cash equivalents	$	145,834		$	110,871
Short-term investments		335,133			161,676
Receivables		133,674			141,180
Deferred income taxes		20,567			32,028
Other current assets		12,052			10,190
Total current assets		647,260			455,945
Property and equipment		99,020			93,887
Deferred income taxes		—			16,647
Restricted funds and security deposits		—			130,260
Other assets		92,167			70,592
Total assets	$	838,447		$	767,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade and other payables	$	34,205		$	48,681
Accrued expenses		142,245			117,539
Accrued restructuring charges		12,112			8,867
Income taxes payable		43,316			64,546
Deferred revenue		19,216			11,333
Total current liabilities		251,094			250,966
Deferred income taxes		8,986			—
Stockholders' equity:
Common stock, $0.0001 par value, and additional paid-in capital		363,014			306,859
Retained earnings		804,981			732,730
Accumulated other comprehensive income		45,415			(1,879	)
Treasury stock at cost, net of reissuances		(635,043	)		(521,345	)
Total stockholders' equity		578,367			516,365
Total liabilities and stockholders' equity	$	838,447		$	767,331