Avid Announces Receipt of Anticipated NASDAQ Letter

  Avid Announces Receipt of Anticipated NASDAQ Letter

Business Wire

BURLINGTON, Mass. -- March 21, 2013

Avid Technology, Inc. (NASDAQ:AVID), announced today that, due to the
previously disclosed delay in the filing of its annual report on Form 10-K for
the year ended December31, 2012 (the “Form 10-K”), the Company has, as
expected, received on March 19, 2013 a notification letter from staff of the
NASDAQ Listing Qualifications Department (the “Staff”). The notification
states that the Company is no longer in compliance with NASDAQ Marketplace
Rule 5250(c)(1), which requires timely filing of periodic reports with the
Securities and Exchange Commission (SEC). The NASDAQ letter was issued in
accordance with standard NASDAQ procedure, which provides that failure to
timely file the Company's Form 10-K could serve as a basis for the delisting
of the Company's stock from the NASDAQ Global Select Market. The Company
intends to submit to the Staff a plan as to how it plans to regain compliance
with NASDAQ's continued listing requirements. The NASDAQ notice specifies that
this plan has to be submitted by May 20, 2013. If the Staff accepts the
Company's plan, the Company expects to have up to 180 calendar days from the
initial due date for the Form 10-K, or until September16, 2013, to regain
compliance. If the Staff does not accept Avid's plan, Avid will have the
opportunity to appeal that decision to a NASDAQ Hearings Panel. The NASDAQ
notice has no immediate effect on the listing of Avid's common stock on the
NASDAQ Global Select Market.

On March19, 2013, the Company filed a Form 12b-25 with the SEC stating that
it was unable to file the Form 10-K with the SEC on or before March 18, 2013,
the prescribed due date, because it is continuing to evaluate the accounting
treatment related to bug fixes, upgrades and enhancements in certain of the
Company's customer arrangements (collectively, “Software Updates”). The
primary focus of the Company's evaluation to date has been to determine
whether certain Software Updates previously thought to be only bug fixes met
the definition of post-contract customer support under U.S. Generally Accepted
Accounting Principles. The Company is working diligently to complete the
review and continues to focus its efforts on completing the Form10-K filing
as soon as possible.

During this evaluation, the Company plans to continue to invest in its product
innovation and execute on its growth strategy. The company has no debt and
ample cash to support it in these efforts and believes it is well positioned
to support its customers’ ongoing success.

Cautionary Note regarding Forward-Looking Statements

Statements made in this release that express Avid's or its management's
intentions, indications, beliefs, expectations, guidance, estimates, forecasts
or predictions of the future constitute forward-looking statements, as defined
by the Private Securities Litigation Reform Act of 1995, and relate to matters
that are not historical facts. They include, without limitation, statements
relating to Avid's plans for regaining and submitting a plan of compliance
with NASDAQ's continued listing requirements within the prescribed period;
whether or not NASDAQ will accept the plan of compliance; the extension time,
if any, granted by NASDAQ for the filing of the Form 10-K; the ongoing
evaluation of Avid's current and historical accounting treatment and the
scope, outcome and timing of such evaluation; the impact on its financial
results for 2012 and any prior periods; the anticipated filing date of Avid's
Form 10-K; the company’s ability to execute on its growth strategy and product
innovation and its cash position and liquidity. These forward-looking
statements are based on current expectations as of the date of this filing and
subject to known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such
statements, including but not limited to: the Company's ability to regain
compliance with NASDAQ's continued listing requirements; whether NASDAQ will
accept the Company's plan of compliance and grant an extension; the impact of
the delay in Avid's completion of its financial statements and the filing of
its Annual Report on Form10-K; the impact of the ongoing evaluation of
accounting treatment on financial results for 2012 and prior periods; the
material weakness in Avid's internal control; recent changes in Avid's
leadership team; Avid's ability to execute its strategic plan and meet
customer needs; its ability to produce innovative products in response to
changing market demand, particularly in the media industry; risks related to
litigation; competitive factors; history of losses; fluctuations in its
revenue, based on, among other things, Avid's performance in particular
geographies or markets, fluctuations in foreign currency exchange rates, and
seasonal factors; adverse changes in economic conditions; and Avid's
liquidity.

Moreover, the business may be adversely affected by future legislative,
regulatory, or tax changes as well as other economic, business and/or
competitive factors. The risks included above are not exhaustive. Other
factors that could adversely affect Avid's business and prospects are
described in the filings made by the Company with the SEC.

Avid expressly disclaims any obligation or undertaking to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise.

About Avid

Avid creates the digital audio and video technology used to make the most
listened to, most watched and most loved media in the world - from the most
prestigious and award-winning feature films, music recordings, television
shows, to live concert tours and news broadcasts.Some of Avid's most
influential and pioneering solutions include Media Composer®, Pro Tools®,
Interplay®, ISIS®, VENUE, Sibelius®, and System 5. For more information about
Avid solutions and services, visit www.avid.com, connect with Avid on
Facebook, Twitter, YouTube, LinkedIn, Google+; or subscribe to Avid Buzz.

© 2013 Avid Technology, Inc. All rights reserved. Avid, the Avid logo, Media
Composer, Pro Tools, Interplay, ISIS, and Sibelius are trademarks or
registered trademarks of Avid Technology, Inc. or its subsidiaries in the
United States and/or other countries. The Interplay name is used with the
permission of the Interplay Entertainment Corp. which bears no responsibility
for Avid products. All other trademarks are the property of their respective
owners.

Contact:

Media Contact
Avid
Lisa Kilborn, 978-640-3230
lisa.kilborn@avid.com
or
Investor Contact
Avid
Tom Fitzsimmons, 978-640-3346
tom.fitzsimmons@avid.com