Graphic with transparency in 10.1 layout odes not export properly in PDF Export

Good day. I am trying to export a pretty simple map to PDF and finding the results are not what I expect. I have inserted two graphics on top in Layout. One is just a rectangle that has a custom user style applied. The style uses a Picture Fill derived from a PNG file that has transparency set to 80% opacity in the original file.

The other graphic is a rectangle text box that has a similar Picture Fill Style applied, this one using a 20% grey fill and 80% opacity in the original PNG file. On screen, the boxes look fine. That is, I can see other layer information underneath that looks greyed out with a partially transparent box overlaying.

When I export to PDF, the boxes show up as empty of any fill at all. The sample text in the text box shows up, but not the transparency fill.

Resolution is set to 300 DPI, Resampling is set to best. Colour space is set to CMYK. There is no compression. Bitmap fills are set to vectorize. I have tried varying every setting that can be changed in Export to PDF and find that nothing really changes with regard to this transparency issue.

I have clipped a bit of the screen from both ArcGIS 10.1 and the resulting PDF file and attached both below.

Any ideas? I have scanned other forum posts and see that it is an issue from several versions back. Has it ever been solved?

Thanks,
Russell Collier

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