In 1987,Thomas Knoll, a PhD student at the University of Michigan began writing a program on his Macintosh Plus to display grayscale images on a monochrome display. This program, called Display, caught the attention of his brother Jhon Knoll , an Industrial Light & Magic
employee, who recommended that Thomas turn it into a full-fledged image
editing program. Thomas took a six-month break from his studies in 1988
to collaborate with his brother on the program. Thomas renamed the
program ImagePro, but the name was already taken. Later that year, Thomas renamed his program Photoshop and worked out a
short-term deal with scanner manufacturer Barneyscan to distribute
copies of the program with a slide scanner ; a "total of about 200 copies of Photoshop were shipped" this way.
During this time, John traveled to Silicon Valley and gave a demonstration of the program to engineers at Apple and Russell Brown , art director at Adobe . Both showings were successful, and Adobe decided to purchase the license to distribute in September 1988. While John worked on plug-ins in California, Thomas remained in Ann Arbor writing code. Photoshop 1.0 was released on February 19, 1990 for Macintosh exclusively.The Barneyscan version included advanced color editing features that
were stripped from the first Adobe shipped version. The handling of
color slowly improved with each release from Adobe and Photoshop quickly
became the industry standard in digital color editing. At the time
Photoshop 1.0 was released, digital retouching on dedicated high end
systems, such as the SciTex, cost around $300 an hour for basic photo retouching.
Source : www.wikipedia.com
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