Not according to the strict definition of adultery, but with all its provisions for extra marital relations and "temporary marriage" (e.g. http://en.wikipedia.org/wiki/Nikah_Mut%E2%80%98ah ) it certainly eliminates the need for adultery as we know it.
What they have done is incorporate what we would describe as adultery and prostitution in the West, and given it a "respectable" cover.
edit:
Here are a couple of verses from the Koran that I find relevant to this issue:
70:22-30
"Not so the worshippers, who are steadfast in prayer, who set aside a due portion of their wealth for the beggar and for the deprived, who truly believe in the Day of Reckoning and dread the punishment of their Lord (for none is secure from the punishment of their Lord); who restrain their carnal desire (save with their wives and their slave girls, for these are lawful to them: he that lusts after other than these is a transgressor..."
23:5,6
"...who restrain their carnal desires (except with their wives and slave girls, for these are lawful to them..."
4:24
"And all married women are forbidden unto you save those captives whom your right hand possess. It is a decree of Allah for you. (Muhammad Pickthall's English translation of the Quran).
33:50
"Prophet, We have made lawful to you the wives whom you have granted dowries and the slave girls whom God has given you as booty;..."