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Macromedia Posts Positive Results

Macromedia Inc. today disclosed first quarter 1999 financial results reporting income and earnings of $2.95 million or $0.07 per share, compared to a net loss of $1.2 million or $0.03 per share for the same period last year.

Revenues for the first quarter ended June 30, 1998 equaled $32.3 million, an 18% gain from year-ago revenues of $27.3 million. Gross profits grew 28% to $29,216,000 compared to $22,761,000 in last year's first quarter.

The San Francisco-based software developer received a major boost when it announced during the quarter that both Netscape and Microsoft licensed its Macromedia Flash technology. Netscape will bundle the Flash player with its Netscape Navigator browser, while Microsoft is pre-installing both Flash and Shockwave players in Windows 98.

"Our improved financials reflect the early results of our new Web products," said Rob Burgess, Macromedia's chief executive officer. "During the quarter, we shipped Dreamweaver 1.2, Flash 3, Fireworks, Director 6.5, and the beta release of our newest server-based product, Macromedia Generator. "We are pleased with how our new Web products have been received by customers as new workflows and products emerge, designed specifically to add life to the Web."

Wall Street reacted favorably to the positive quarterly financials with Macromedia (MACR:Nasdaq) showing a 1 3/8 gain, trading at 15 11/16 in mid-morning trading.