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Adobe,the software company best known for Photoshop and Acrobat, may sue Microsoft if it is not satisfied with the outcome of EU attempts to ensure Microsoft's new operating system does not shut out rivals.

Bruce Chizen, Adobe's chief executive, told Germany's Euro am Sonntag newspaper there were two options: to sue Microsoft directly or to work with the authorities and provide them with the necessary information.

'We're doing the latter. Then we'll see,' Chizen said.

Microsoft's new Vista software, due to be released early next year, contains a version of fixed document formats, which would compete with Adobe's PDF format. Microsoft has pledged to make changes to its version.

Chizen added that Adobe, known for its popular Acrobat document reader, was considering offering some of its more sophisticated software for photo and video editing over the Internet, financed by advertising.

'It would be a shame if we could not fit this into our business model,' Chizen said.