Dec. 18, 2002

Pinnacle Systems, Inc. (NASDAQ: PCLE), announced today that it has entered into a definitive agreement to acquire all of the stock of Steinberg Media Technologies AG based in Hamburg, Germany. Steinberg specializes in digital audio software solutions for consumers and professionals. The companies expect to close the transaction in early January 2003 and have agreed on a total purchase price of approximately $24 million, consisting of $8.2 million in cash and $15.8 million of Pinnacle Systems common stock. At closing, Pinnacle Systems will acquire all products, software, and intellectual property rights, along with all other assets and liabilities of the company. Pinnacle will account for this transaction as a purchase in Pinnacle Systems’ fiscal Q3, ending March 31, 2003. The Company will host a conference call at 2:00 p.m. (Pacific Time) on December 18, 2002. The call in number is 800-634-1569, no password required.

J. Kim Fennell, President and CEO at Pinnacle Systems said, “We are delighted to welcome Steinberg’s customers and employees into the Pinnacle family. Steinberg is a recognized industry leader in digital audio and this transaction significantly broadens Pinnacle’s digital media offerings. By adding the talent and technology of Steinberg to our company, we believe we can bring our customers an even stronger solutions portfolio.”

About Steinberg Media Technologies AG
Steinberg Media Technologies AG is known the world over for its professional audio software. The company has been developing, manufacturing and selling software products for professional musicians and producers in the music, video and film industry since 1984. Steinberg products are also enjoying success in the fast-growing consumer market with music creation and other multimedia applications. Steinberg is today one of the world's largest audio software houses. www.steinberg.net

About Pinnacle Systems, Inc.
Pinnacle Systems provides broadcasters and consumers with cutting-edge digital media creation, storage, and play-back solutions for use at Home, in the Studio and on the Air. Pinnacle Systems' award winning digital media solutions are in use around the world for broadcast, cable and satellite television, video editing, DVD and CDR authoring, and the Internet. A recognized industry leader, the company has received eight prestigious Emmy Awards for its technical innovations and carries this commitment throughout all of its product lines. Pinnacle Systems may be reached at (650) 526-1600 or at www.pinnaclesys.com

More Info about Steinberg acquisition by Pinnacle Systems

Pinnacle Systems is the leading supplier of video editing solutions delivering high quality, real-time video content creation and distribution tools to customers worldwide. Pinnacle Systems is known for its focus on innovative, reliable products and the investment protection provided by interoperable and scaleable designs, in both the broadcast and consumer markets.

Pinnacle Systems has won eight Emmy Awards for its work in leading the video transition from traditional to computer-based video productions, with products that range from consumer home video editing and DVD-authoring software to broadcast servers and Internet streaming solutions. The company's products are known for delivering cost-effective solutions for consumer, business and broadcast applications. Whether it is a video editing software package for a home PC or a high-end video server for the professional broadcaster, Pinnacle Systems offers a breadth of solutions to meet the specific needs of the individual customers.

Founded in Mountain View, Calif., in 1986, Pinnacle Systems is a $270 million company with offices around the world, and product distribution through retailers, distributors and the Internet. Adding innovative and complementary technologies to its product portfolio, while further strengthening its position in the marketplace, Pinnacle Systems has successfully acquired and integrated more than 15 companies in the last decade.