- January: Co-founder Marc Canter is ousted from MacroMind-Paracomp.
- February 25: Incorporation forms are filed for Macromedia in the state of Delaware.
- March: MacroMind-Paracomp and Authorware Inc. reveal their plans to merge, forming Macromedia.
- May: Adobe Illustrator 4.0 is released solely for Windows by Adobe Systems.
- May 26: Adobe Systems co-founder Charles Geschke is kidnapped from the company's parking lot in Mountain View, California.
- July 10: Macromedia is formed through the completed merger of MacroMind-Paracomp and Authorware Inc.
- September 5: Adobe Systems engineer Laurie Houts is found murdered near the company's headquarters in Mountain View, California.
- November: Adobe Photoshop 2.5 is released by Adobe Systems for Macintosh, and for the first time for Windows.
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