Press Release: February 15, 2001

WR Hambrecht + Co Initiates Coverage of Macromedia (MACR) with a Neutral Rating

San Francisco, CA, February 15, 2001—WR Hambrecht + Co today initiated research coverage on Macromedia, Inc. (MACR) with a Neutral rating. WR Hambrecht’s eMedia analyst Bill Lennan cites Macromedia’s de facto leadership in web authoring as a strength, however Lennan believes the company faces soft product demand in the near term and a high valuation relative to its EPS. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“We estimate Macromedia’s addressable market will grow 23 percent from 2000 to 2005, from $3.0 billion to $8.4 billion. However, Macromedia faces a number of significant challenges, including flat sequential revenue growth, lack of significant product upgrades, and the integration of Allaire Corporation,” Lennan said.

Lennan projects Macromedia’s FY2001 revenue at $387 million and EPS of $1.32 and a FY2002 revenues of $467 million and EPS of $1.67, an increase from FY2000 revenues of $256 million and EPS of $0.80. (Estimates do not include results for shockwave.com and the pending acquisition of Allaire Corporation [ALLR].)

Macromedia, Inc. develops, markets and supports software products, technologies and services for the Web.