Media 100 Reports First Quarter 2003 Financial Results, 844/X End-User Unit Shipments Increase 48% Sequentially

Business Wire, April 3, 2003

Business Editors/High-Tech Writers

MARLBORO, Mass.--(BUSINESS WIRE)--April 3, 2003

Media 100 Inc. (NASDAQ: MDEA), a leading developer of advanced media systems, today reported financial results for its first quarter ending February 28, 2003.

Net sales for the first quarter increased 6.6% to $4.8 million, versus $4.5 million in the first quarter of fiscal 2002, and increased 82% versus the $2.6 million reported in the fourth quarter of fiscal 2002.

On a generally accepted accounting principles (GAAP) basis, the Company reported a net loss of $1.4 million, or $0.10 per share in the first quarter, versus a net loss of $5.9 million, or $0.46 per share, in the first quarter of 2002.

During the first quarter the Company increased end-user unit shipments of 844/X--the award-winning editing system for lightning-fast compositing of unlimited layers--by 48% over the fourth quarter of fiscal 2002. In addition, in January the Company announced three major new 844/X product advancements--The Version 2.0 Finishing Release, XBLUR, and HDX Technology--that it expects will contribute to further growth in fiscal 2003.

"We are pleased we exceeded our revenue guidance by 20% and continued our progress toward profitability by increasing our sales of 844/X in the first quarter," said John Molinari, president and chief executive officer for Media 100. "We are excited about our announcement in January of the Version 2.0 software expansion and the incorporation of new visual effects and support for HD. These advanced developments are leading-edge technically and important to customers; they will help us increase our market penetration in key segments, including independent content design, regional over-the-air and cable broadcasting, and Fortune 500 and higher-education video."

In the first quarter, Media 100 made inroads with 844/X in every key market segment where the compositing of layers is a growing requirement. Customers purchasing 844/X in the quarter included: regional broadcasters like NBC affiliate KRNV in Reno, ABC affiliate WABC TV in New York, MSNBC affiliate WKTV in New York, and Playboy TV in the UK; cable operators Time Warner Cable and Charter Communications; corporations such as BAE Systems, General Dynamics, Honda Research and Development, and John Hancock Financial Services; educational institutions like Kent State University; and a multitude of post-production companies and creative agencies.

First Quarter 2003 Highlights

-- 844/X end-user unit shipments increased 48% over the fourth

quarter;

-- The Company began shipments in December of the affordable

844/Xi that targets current users of dual-stream editing

systems;

-- The Company announced in January:

- The Finishing Release--Version 2.0 software for 844/Xe and

844/Xi for expected shipment in May 2003;

- XBLUR--the first-ever incorporation of real-time Gaussian Blur

effects in a nonlinear editing system for expected shipment in

June 2003;

- HDX Technology--expansion of the GenesisEngine media processor

providing support for HD and SD applications in a single 844/X

system, expected for delivery in the second half of 2003;

-- The Company began shipments in February of The

Interoperability Release--Version 1.5 software for 844/X--that

includes OMF compatibility with Avid, Digidesign and Media 100

i systems plus tighter integration with Adobe After Effects

and Photoshop;

-- The installed base of 844/X increased 59% to over 190 systems

installed.

Forward Looking Guidance

For the second quarter of fiscal 2003, Media 100 anticipates net sales to be in the range of $4.5 million to $5.0 million, based on increased shipments of 844/X products to end users. The Company anticipates its net loss in the second quarter of fiscal 2003 to be between $0.09 and $0.11 per share.

Conference Call Information:

The Company will host a conference call today at 11:00 a.m. EST to highlight details of its financial results.

Date:

Thursday, April 3, 2003

Time:

11:00 a.m. Eastern Standard Time

10:00 a.m. Central Standard Time

9:00 a.m. Mountain Standard Time

8:00 a.m. Pacific Standard Time

Dial-In Number:

800-473-6123 (Domestic)

973-582-2706 (International)

Additionally, a live Webcast of the conference call will be available at www.media100.com or www.kcsa.com.

For those unable to participate, there will be an audio replay available from April 3, 2003 at 1:00 p.m. EST, through April 16, 2003 at 11:59 p.m. EDT.

To listen to the audio replay, please dial:

Domestic: 877-519-4471

International: 973-341-3080

Replay Pin code: 3822320

A replay of the live Webcast will also be available through May 2, 2003 at www.media100.com or www.kcsa.com.

About Media 100

Media 100 develops advanced media systems for content design, enabling creative professionals to design highly evocative effects-intensive work all on a personal computer. Creative artists and content design teams around the world use the Company's Emmy Award-winning solutions. Media 100 is headquartered in Marlboro, Massachusetts. For more information, please visit www.media100.com.