Avid Technology 2008 Investor Day

October 27th, 2008 Safe Harbor Statement

Please note that remarks made during this presentation may include forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements. There are a number of factors that could cause actual events or results to differ materially from those indicated by these forward- looking statements, such as competitive factors, including Avid’s ability to anticipate customer needs, pricing pressures, Avid’s ability to execute its strategic plan, and adverse changes in general economic or market conditions, particularly in the content-creation industry. Other important events and factors appear in Avid’s filings with the U.S. Securities and Exchange Commission. In addition, the forward-looking statements included in this presentation represent our estimates only as of today and should not be relied upon as representing our views as of any subsequent date. Avid undertakes no obligation to review or update these forward-looking statements.

, The Team • Gary Greenfield, CEO and Chairman • Kirk Arnold, EVP, Customer Operations • Martin Vann, VP, Worldwide Sales and Service • Dave Lebolt, VP, CTO • Tim Claman, Senior Director, Product Management • Paul Lypaczewski, VP, Video Business • Tex Schenkkan, VP, Audio Business • Beth Martinko, VP, Customer Success • Ken Sexton , CFO and Chief Administrative Officer • Glover Lawrence, Corporate Development • Joel Legon, VP, Finance • Jerry Kelly, VP, IT • Ed Raine, VP, HR • Paige Parisi, VP, General Counsel Vision, Strategy and Transformational Plans

Gary Greenfield CEO and Chairman Our Mission Inspire passion, unleash creativity, and realize dreams in a digital world Strategy Evolution

• Capitalize on our strengths

• Avid solutions play in strong, growing markets

• Adhere to customer-focused strategic principles

• Initiate a three phase transformation plan

• Leverage strengthened leadership team Avid Strengths

Leadership Positions & Passionate Customers, Respected Brands Employees & Partners

Deep Domain Expertise Innovative Products & Strong Product Portfolios Avid’s Five Strategic Principles

• Drive customer success – Avid is committed to making each and every individual customer successful. Period. It’s that simple. • From enthusiasts to the enterprise – Whether performing live or telling a story to sharing a vision or broadcasting the news – we create products to support our customers at all stages. • Fluid, dependable workflows – Reliability. Flexibility. Ease of use. High Performance. We provide best-in class solutions that make our customers more productive and competitive. • Collaborative support – For the individual user, the workgroup, a community or the enterprise, we enable a collaborative environment for success. • Avid optimized in an open ecosystem – Avid products are innovative, reliable, integrated and best of breed. We work in partnership with a 3rd party community resulting in superior interoperability. Transformation Plan

Phase 1 Phase 2 Phase 3

Build core Unlock new Get Healthy momentum and sources of growth expand margins

– Use our scale – Maximize profit – Expand into new – Become more from leadership product and efficient and positions customer streamlined – Expand number of adjacencies – Clear brand strategy products each – Revenue growth – Become more open customer uses in-line with markets we serve – Expand recurring – Leverage one face revenue streams to the customer – Invest for the future – Target healthy cash generation Drive Avid to Full Potential New Organization Provides Focus on Customer

• Enables the strategy - A single Avid go-to-market approach for high-end customers - Ties together video strategy from consumer to professional - Forces prioritization of strategic initiatives in a “One Avid” fashion

• Customer focused - New Customer Operations group aligned around customers/channels as the “front end” for each business segment - VP of Customer Success reporting to CEO with company-wide responsibility over customer support Avid: Leader in Market Solutions

Kirk Arnold EVP, Customer Operations Market Led Growth

Consumers

Video & Audio Professionals

Enterprise Customers Education customer segments customer segments From the Enthusiasts…. To Our Professional & Enterprise Customers Why this is exciting

• We now have an opportunity to bring the full strength of Avid to our customers – Audio, Video solutions – Rationalized channel efforts – Products & services • Customer segments are the cornerstone of new customer-focused processes and behaviors – Customer Advisory Board – Customer Success Model – Alliances and partnerships Media technology sector growing ahead of average technology spend

Sampling of Avid Segment Growth • Broadcast = 6% • Education = 10% • Creative Independents = 15%

Technology Industry Average Growth Rate = 7% Avid Market Growth Rate = 9%

Source: IABM / Screen Digest Broadcast customers likely impacted by the downturn given the cyclicality of advertising spend

20% US Advertising growth vs. US GDP growth GDP Advertising GDP/Advertising Correlation: 97%

-10 0 1 5 6 8 8 2 3 0 0 7 9 9 8 8 4 5 0 0 0 1 1 9 9 8 8 6 7 2 0 1 1 9 9 8 8 8 9 2 1 1 9 9 8 8 0 1 1 1 9 9 9 9 2 3 1 1 9 9 9 9 4 5 1 1 9 9 9 9 6 7 1 1 9 9 9 9 8 9 Note: All data is US only; CAPEX on both new and used equipment1 counted1 9 9 9 9 0 1 1 1 9 9 0 0 2 3 1 1 0 0 0 0 4 2 2 0 0 0 Source: Veronis Suhler Stevenson, US Economic Bureau 2 2 0 2 2 But broadcast spend also positively impacted by business and technology trends

• Major increases in broadcast CAPEX occurred in 1997, 1999, and 2003, ahead of major multi-day broadcast events occurring in 1998, 2000, 2004 – sporting events, elections • Government edict • Move to digital workflows •HD transition Global Sales and Distribution Dynamics

Avid Customer Base Installed Key Product Base • 270,000 Businesses • 60,500 MC Adrenaline & Meridien Systems • 5,000 Broadcast & Post • 725,000 Legacy Pro Tools Systems • 10M Registered Consumers

Channel Partners Emerging Markets • 926 Distributors • Russia, Saudi Arabia and Ukraine • 22,400 Retail Outlets • Argentina and Brazil • China and India One Avid

Delivering end to end solutions to our customers

Driving effectiveness & efficiencies

Leveraging powerful brands Emerson Tour

Martin Vann VP, Worldwide Sales and Service Avid Video

Paul Lypaczewski Vice President and General Manager What is Avid’s Video business?

Avid is dedicated to delivering scalable, collaborative workflow solutions for media enthusiasts and professionals, from content creation to multiple distribution Avid’s Video Market Position • We are the market leader in professional editorial solutions • We provide the most purchased consumer editorial solution • We are the largest provider of real-time data storage & workflow solutions for media • We are the market leader for Production Content management • We are a major player in On-Air and Broadcast solutions and the leader in newsroom production, communication, and newscast control

Source IABM 2006, extrapolated to 2007 and Avid estimates. Avid’s Advantage

Avid‘s differentiation is the productivity and workflows that we provide to groups of editors, sharing and managing media and metadata, from content creation to multiple distribution

• Editors are differentiated because they manage production process within workgroups, capturing media and metadata and creating content for multiple distribution. • Production asset management and workflow tools like Interplay and iNews coordinate activity of workgroups and manage metadata. • Shared storage makes media sharing possible within workgroups. • Knowledge of production workflows, software integration and making systems work sets us apart from packaged software vendors. Stand Alone Editor • Editing can be accomplished on a laptop • Offline editing or compressed formats • Ingest & Output via IT interconnect & files

1394/Ethernet Small Post Workgroup • Collaborators share “workspaces” on Unity

Editing (Media Composer) Avid Unity MediaNetwork Audio (Pro Tools)

Finishing (DS Nitris) Large Post Workgroup • Logging on Assist

Editing (Media Composer) ISIS

Audio (Pro Tools)

Finishing (DS, Symphony) Logging (Assist)

Interplay Live Show • Live Ingest & Logging; Graphics

Logging Editing (MC) ISIS (Assist)

Audio (Pro Tools)

Finishing (Symphony)

Interplay Graphics Ingest (AirSpeed) (Photoshop, After Effects) Large News Production • Integration with iNEWS and Play-to-Air

Logging Editing (NewsCutter) ISIS (Assist) Journalists (iNEWS/Instinct)

Play-to-Air Command, Sundance

Interplay Ingest (AirSpeed) AirSpeed Deko On-air Workflow - Acquisition

CaptureManager ISIS / Interplay Command

Satellite Feeds AirSpeed AirSpeed Broadcast

Deko

iNEWS Servers

ACM

Web & Other Channels

Camera Crews

iNEWS Clients NewsCutters Instinct Clients On-air Workflow - Editing

CaptureManager ISIS / Interplay Command

Satellite Feeds AirSpeed AirSpeed Broadcast

Deko

iNEWS Servers

ACM

Web & Other Channels

Camera Crews

iNEWS Clients NewsCutters Instinct Clients On-air Workflow - Distribution

CaptureManager ISIS / Interplay Command

Satellite Feeds AirSpeed AirSpeed Broadcast

Deko

iNEWS Servers

ACM

Web & Other Channels

Camera Crews

iNEWS Clients NewsCutters Instinct Clients The Future

• SD and HD capture from consumer “still” cameras is driving consumer demand for approachable content creation, to multiple media. • File-based workflow. From camera, through post production, to distribution. • Web and Mobile Consumption. Emergence of new, distribution channels with profitable business models. • Customization/Personalization of Content. Enables precise targeting of viewers in narrow demographics. The Future

• Increased Demand for Storage. Driven by file-based workflow and customization of programming. • Media Asset Management. Organizes and exposes the growing library of file-based content, enabling optimal monetization. • Workflow Automation. Increased efficiency is required to cost- effectively create and distribute customized content for more outlets. What customers and industry experts say: "Avid was once again able to deliver a "Interplay combined with the ISIS [shared workflow to help us meet these storage solution] radically changed our rigorous demands. We have installed entire workflow. What used to take hours the largest and most integrated Avid to produce now takes minutes.” environment to date for NBC Olympics, particularly with the addition of the Avid Paul Koopmann, Director of Engineering, VERSUS Unity ISIS and Interplay systems.“

Dave Mazza, Senior VP, NBC Olympics

"It's like driving a really responsive German sport car. The system goes wherever I point it, and it can stop on a dime. It's a dream.“

Walt Leiding, Tech Supervisor and editor for CBS News Avid Audio

Tex Schenkkan Vice President and General Manager What is Avid’s Audio business?

A wide range of tools and systems, for creating, editing, and mixing sound, for music, television, film and broadcast and live performance, for enthusiasts, professionals and enterprise Avid Audio’s Market Position • We are the market leader in software – Digital Audio Workstations – Pro Tools is #1 – Notation applications – Sibelius is #1 • We are the market leader in hardware: – Computer Audio Interfaces – M-Audio and Digi together are #1 – MIDI Keyboards and controllers – M-Audio is #1 – Mixing consoles - ICON is #1 • We are a major player in – Live sound mixing – our fastest growing market – Desktop and home studio monitors Sources of Leadership

• Innovation, quality and performance – Best sounding, most reliable – Focused on user workflows – Winner of multiple awards • Integrated systems – Core applications, I/O, acceleration hardware, control surfaces and more – Hardware and software built to work together seamlessly • Platform for third parties – Rich ecosystem, providing choices for customers • Employees who know the business – Musicians, recording engineers, live sound mixers Pro Tools – A rich platform

Pro Tools Enhanced Interoperability and Scalability

Satellite Link

Video Satellite

Media Composer Pro Tools Leader in mixing control surfaces

D-Control

D-Command

New: C|24 Extending the Venue product family in Live Sound

D-Show system

Profile system

New: Profile with Mix Rack system Enhancing leadership in I/O

003 family

Mbox2 family

FastTrack family Expanding leadership

Speakers

Keyboards and controllers The Future – Music Creation, New Markets The Future – Upgrades and Enhancements The Future – Product Line Extensions What customers say: “The system ran like a champ, even in “As we all know, the music industry is the face of 100-degree heat and changing. Digital technology has blowing sand. Digidesign’s stuff is the become the great enabler, allowing us to most robust and dependable create our content as we choose—a equipment ever. I’m fearless on this song at a time, or a whole concept system.” album—and put it all online. And no company has contributed to that Gary Lux, Operation MySpace:"The Live MicroTrack from Kuwait has been an amazing creative control more than Digidesign.” tool—I never leave home without one." Dave Navarro, Red Hot Chili Peppers and Jane’s Addiction “What initially Richarddrew meDevine, towards Artist, Produ M-Audiocer, Sound gearDesigner, was Remixer portability and affordability but after several years, I’m still “I think Sibelius is a really using my M-Audio gear on stage in high-pressure fantastic program. I haven’t found situations because it’s reliable and intuitively designed for anything that I can’t do with it yet. live use.” Kristopher Pooley, Keyboardist for Gwen Stefani, Jane’s Addiction,And Liz Phair I don’t think I ever will.” Dario Marianelli, composer of the Golden Globe- winning and Oscar and Bafta-nominated score for Atonement Avid’s Next Steps – Future Vision

Dave Lebolt, CTO Presented by Tim Claman Senior Director, Product Management Recent growth fueled by…

• Broadcast’s move to digital

• Video industry transition to HD

• LAN-based workgroup/Production asset management – Intelligent multi-res workflows, metadata management, shared storage

• Audio Home Studio, ICON mixing, start in Live Sound …But meaningful strategic gaps

• Acquisition integration; brand leverage neglected

• Eyes off the ball on our Video Editor product line – Missing opportunity to exploit “Aspirational” ladder within Video – Aging SW not strongly connected to next gen customers

• Systems too closed in Video – Missing market growth that can come from a vibrant 3P ecosystem

• Commitment/execution challenges; product complexity

As a customer, I would like to… • Feel as if the creative tools I use are so truly groundbreaking that they inspire me to my best work every day while never “getting in my way”

• Have the technology always be one step ahead of me — almost a part of me — solving problems so I don’t have to

• Be able to use a single platform for many creative tasks, but not be locked in to just one company’s products As a customer, I would like to…

• Work fluidly with any project type/format, anywhere I am

• Not worry about what where my data is, how to find it or back it up, but be able to get to it quickly

• Work on the Web with others in my creative sphere — collaborating, promoting and selling my work — without having to make it all happen myself Unlocking Dreams…

• WAN/Internet collaboration – Satellite contributors integrated with centralized production hubs – True ecosystem for collaboration — tied in with 3rd parties

• Big opportunity: multi-format delivery – Advertising $$ moving – File-based future — differentiation via true production asset management

• Post workgroups, mid-range pro collaboration, tying individuals to group advantages Unlocking Dreams…

• Audio — Live Sound adjacency – Healthy growth – Digital transition underway in $1Bn segment Unlocking Dreams…

• Integration and simplicity – Next-gen Video editor family — align with next-gen creatives – Product suites at major price points — Education also key – Interoperability

• Create anywhere, multi-format data handling, archiving, end-to-end workflows – From multi-media live performance to Enterprise Broadcast/Post Unlocking Dreams…

• Creative Web “sandboxes” — sharing, cross-selling in an amazing creative community — huge talent pool Summary • Integration & Simplicity — Expand to creative mid-mkt. “Integrated Media Solutions” and grow the high-end • Take advantage of the “aspirational ladder” in video – Project exchange, unified user experience, marketing vision • Avid optimized open ecosystem that exploits “3P goodness” • Big opportunities: WAN/Web collaboration & multi-format delivery • Audio: adjacencies like Live Sound ($1Bn) – Exploit digital transitions and unique integration advantages Customer Success

Beth Martinko VP, Customer Success What is a “Customer Success” Organization?

• Focus on the customer not the product

• Accountability for success

• Support business model

• Customer success framework

Strong focus on customer needs Consumer & Professional

• Improved knowledge • Easy self-service • Assisted service options • Going the extra mile to ensure the customer is successful Enterprise Customers

• Mission critical response • Escalation process • Executive interactions • Customer Advisory Board • Going the extra mile to ensure the customer is successful

Demonstrating the New Avid Summary • Focus on the customer not the products • Support for each rung of the aspirational ladder • Value = Value • Leverage all of Avid resources • Financial and business best practices to achieve results

Strong focus on customer needs Avid Business Model

Ken Sexton CFO and Chief Administrative Officer Safe Harbor Statement

A historical reconciliation of the GAAP to non GAAP reconciliation is available on www.avid.com in our quarterly earning press releases. For purposes of understanding our future business model, we are providing some forward-looking analysis on a non-GAAP basis. Our GAAP financial measures are not, however, accessible on a forward-looking basis and the differences between our future GAAP and non-GAAP financial measures could be substantial. Overview of Major Transformational Steps • Mid-year accomplishments – Outlined our strategy – Established a new leadership team – Took 1st steps to create an customer centric organization • Recent steps – Q3 & Oct 2008 – Agreed to divest of non-core product lines – Significant progress in next level down towards one Avid – Took action to reset our cost base for 2009 & beyond • Target is to complete these activities in 2008 Planned Divestitures • Sale of Softimage 3D animation – Agreement with Autodesk signed Oct 23, 2008, expected to close in 2008 – Sale proceeds = $35 million, subject to certain closing adjustments – Escrow = 20% of sales price – Treated as discontinued product line – included in results up to close date • Sale of Pinnacle PCTV – Agreement with Hauppauge signed Oct 26, 2008, expected to close in 2008 – Sale proceeds = $5 million at closing – Additional proceeds contingent upon sell-off of PCTV inventory over 18 months – Proceeds may approximate recovery of cost in most cases – PCTV net inventory at end of Q3 = $14 million – Q4 charges for closing down operations which had supported PCTV – Treated as discontinued product line – included in results up to close Overview Restructuring • Reduction in Force – Move to a customer centric organization – Announced plan in Oct to eliminate 500 positions – Reduction includes employees from divestitures – Reductions in all areas – About 85% of reductions completed by January 1st 2009 – Remainder completed in 1st half of 2009 – Full savings begin to be realized in Q2 2009 – Restructuring charge estimated to be about $21 to $24 million – Sale proceeds more than cover cost restructuring New Revenue Base

• Major product rationalization complete $930 – Sale of non-core products – End-of-life other minor products $865 • Non-core product revenue – Included in P&L until closing – 2008 YTD = $45 million – 2007 = $65 million • Transformation efforts impact core – Realignment completed in 2008 – Shared channels • Somewhat cautious about economic conditions • Q4 2008 expected to increase sequentially Cost Reductions • Cost savings driven by less personnel = $50m+/year – 500 positions in Q4 restructuring – 100 contractors also terminated – 2,250 heads in 2009 (2,711 in Q3) • New baseline includes cost for offshore partners as we move to a global workforce • Additional savings in facilities consolidation – ongoing • YTD 2008 includes $7 million of transformational cost • Transformational cost coming to an end • Cost base is reset • Q4 2008 operating cost should decrease New Baseline sequentially Operating Expense Bridge

Operating Expense$500M Run-Rate Bridge (non-GAAP ) Millions of Dollars $436

$400 $4 $5 $8 ($58) ($10) ($3) $376 ($6) $300

$200

$100

$0 BeginningPersonnel Transf. Non- Other, Personnel New Off-shore Run rate of 2008 savings cost personnel net savings in adds partnership in (inc. savings cost of goods cost inc. mid-2009 non-core) in non-core

* Note: The GAAP to non GAAP reconciliation is available on www.avid.com in our quarterly earning press releases Gross Margin Trends (Non GAAP) Non GAAP Trends • Target is to improve 2% / yr. 60% • Focus on higher margin products • Consolidation of operations: 50% – Reduction in fixed O/H

40% – Leverage global purchasing power

Gross Margin – Improved inventory turns 30% OPEX • Focus on customer support Op Inc % Revenue – Support + sales focus 20% – Increased revenue + margin – Strengthen recurring base 10% • Optimize professional services: – Improved utilization 0% 2004 2006 1st 9 mos '08 2010 Target – Increased focus GAAP gross margins are generally lower than non-GAAP gross margins by about 1% point, because GAAP margins include amortization of intangibles and stock-based compensation Note: The GAAP to non GAAP reconciliation is available on www.avid.com in our quarterly earning press releases Operating Margin Trends (Non-GAAP) Non GAAP Trends 60% • Target is 10% in 2010

50% • Improved gross margin % • Cost control 40% – Personnel cost is #1 Gross Margin – Leverage shared services 30% OPEX – Increase off-shore resources Op Inc % Revenue – Less products, more leverage 20% – Less layers, span-of-control – Eliminate BU redundancies, such as 10% back-office, sales admin, WEB infrastructure, and R&D efforts 0% 2004 2006 1st 9 mos '08 2010 Target GAAP operating expenses are generally higher than non-GAAP operating expenses by about $15 million to $25 million per year, because GAAP operating expenses include amortization of intangibles and stock-based compensation. GAAP operating expenses also include impairment and restructuring charges, which are excluded. The GAAP to non GAAP reconciliation is available on www.avid.com in our quarterly press releases. P&L Trends (Non GAAP)

2006 2007 1st 9 mos '08 2009 Target 2010 Target 60% 50% 40% 30% 20% 10% 0% ‐10% Gross Margin Expenses Op Inc

* Note: The GAAP to non GAAP reconciliation is available on www.avid.com in our quarterly earning press releases Business Model (Non-GAAP)

* Note: The GAAP to non GAAP reconciliation is available on www.avid.com in our quarterly earning press releases Summary

• Restructuring resets cost base, but work remains

• New organization will be fully operational by January 1st

• Major product rationalization complete

• New baseline positions us well for long term financial health