STOCKREPORTS

Macromedia, Inc.

NASDAQ Symbol MACR

Recent Price 8.63 52 Wk Range 22.63 - 7.06

Yield Nil 12-Mo. P/E NM

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk HIGH Earn/Div Rank NR
Technical Evaluation: BULLISH since 05/97 Rel. Strength Rank (1 Lowest - 99 Highest) 28 Insider Activity NA

Business Profile 24-MAR-97

In March 1997, Macromedia said that revenues for the fourth quarter of FY 97 (Mar.) would be substantially lower than expected, and it would sustain a substantial loss for that period as a result of a delay in the release of its recently announced Director 6 Multimedia Studio product to the June 1997 quarter rather than in March 1997. The decision to delay release of the product was made following a technical review in which management determined that the company's normal quality assurance process had not satisfactorily resolved technical errors. Macromedia's shares are trading at about 80% below their 52-week high.

Operation Review 24-MAR-97

Revenues for the nine months ended December 31, 1996, rose 15%, year to year, but the gain was smaller than anticipated mainly reflecting lower than planned sales for both Authorware and Director in the third quarter, and lower demand mainly in Europe. Profitability was penalized by the greater proportion of lower margin products in the sales mix, and by a 55% increase in research and development expenses. Pretax income fell 37%. After taxes at 36.4%, versus 27.3%, net income was down 45%, to $9,371,000 ($0.23 a share, based on 11% more average shares) from $16,992,000 ($0.46).

Stock Performance 18-JUL-97n

In the past 30 trading days, MACR's shares have declined 5%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 373,900 shares, compared with the 40-day moving average of 335,153 shares.

Key Stock Statistics

Fiscal Year Ending Mar. 31

Dividend Data: No cash dividends have been paid and the company does not plan to pay dividends for the foreseeable future.

Business Summary 24-MAR-97

Macromedia, Inc. has the goal of becoming the preferred, high-volume supplier of software tools for graphics, multimedia, video and Web publishing. It develops, markets and supports an integrated line of graphics, multimedia and online publishing software for both Windows and Macintosh platforms; about 40% of revenues in the third quarter of FY 97 Mar.) was Windows-based and 60% was Macintosh-based.

The company's products are used to create interactive multimedia applications and printed materials for business communicatons, the arts and entertainment, and education. They are used by multimedia, graphic arts, Web, and learning professionals working independently or in organizations ranging from large corporations to small companies, as well as in educational institutions.

The Macromedia Studios, each consisting of a suite of Macromedia products, meet the needs of individuals who develop and deliver multimedia and graphics content by providing a complete, integrated set of tools. The company's Director Multimedia Studio gives developers the capability to create visuals, animation and interactivity all within a single working environment. MACR's design and illustration FreeHand Graphics Studio software package provides a complete set of tools for graphic arts and design. The company provides software tools for building Websites through its Backstage Internet Studio. The Authorware Interactive Studio consists of software authoring tools for creating interactive information applications.

With Micromedia's Shockwave technology (which celebrated its one year anniversary n FY 97's third quarter), users of the company's products are adapting and developing interactive content for use on Websites. Authorware, Director, and FreeHand files can be translated or "shocked" for use on Websites as well as corporate intranets, and other networks.

The company sells and distributes its products mainly through large national software distributors which in turn, distribute them through large retail chains, mail order, National corporate resellers and small independent dealers. With over 80 distributors in more than 50 countries worldwide, international sales accounted for 42% of total revenues in FY 96, and management is committed to increasing that percentage to 50%.

Research and development expenditures are continuing to grow substantially and totaled $20.1 million through the first nine months of FY 97, exceeding the $20 million spent in all of FY 96. Macromedia is continuing to invest in digital media and Internet technologies and products.

Capitalization

Long Term Liabilities: $20,000 (12/96).

Curr. Ratio	6.4	3.7	NA	NA	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	Nil	Nil	NA	NA	NA	NA	NA	NA	NA	NA
% Net Inc.of Revs.	19.7	12.2	10.4	NM	NM	NM	NA	NA	NA	NA
% Ret. on Assets	22.2	NA	NA	NA	NA	NA	NA	NA	NA	NA
% Ret. on Equity	26.6	NA	NA	NA	NA	NA	NA	NA	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--600 Townsend St., San Francisco, CA 94103 Tel--(415) 252-2000. Fax--(415) 626-0554. E-Mail--ir@macromedia.com Website--http://www.macromedia.com Chrmn & CEO--J. C. Colligan. VP-Fin & CFO--J. C. Parsons Jr. Dirs--J. C. Colligan, K. F. Crowder, I. J. Doerr, C. R. Kramlich, J. C. Laing, D. L. Lucas, J. R. Von Ehr II, W. B. Welty. Transfer Agent--Chemical Mellon Shareholder Services, San Francisco, CA Incorporated--in Delaware in 1992. Empl-- 0. S&P Analyst: J. J. Schemitsch

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997