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Phoenix Technologies Announces Major Milestone – First Customers for Phoenix FailSafe(TM) and HyperCore(TM)

MILPITAS, Calif., July 2 /PRNewswire-FirstCall/ -- Phoenix Technologies Ltd. (Nasdaq: PTEC), the global leader in core systems firmware, today announced it has signed its first customers for the groundbreaking Phoenix FailSafe and HyperCore products. Two significant deals signal the market's acceptance of Phoenix's drive to enable PCs with new levels of security, performance and ease of use.

MILPITAS, Calif., July 2 /PRNewswire-FirstCall/ — Phoenix Technologies Ltd. (Nasdaq: PTEC), the global leader in core systems firmware, today announced it has signed its first customers for the groundbreaking Phoenix FailSafe and HyperCore products. Two significant deals signal the market's acceptance of Phoenix's drive to enable PCs with new levels of security, performance and ease of use.

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"We are two steps closer to realizing our vision for the future of personal computing with the most important endorsement a company can achieve on new products – significant customers," said Woody Hobbs, President and CEO of Phoenix Technologies. "We are very excited and look forward to working with our customers and partners to revolutionize the user experience with more security and data protection capabilities embedded into the very foundation of all mobile PCs. We want the PC to be as secure and easy-to-use as a mobile phone, delivering rich functionality and peace-of-mind for all mobile PC users."

Mr. Hobbs added, "Our pole position in the PC stack gives us a unique advantage over other companies in the virtualization space in that it enables us to embed functionality at the very core of personal computers and mobile internet devices. We are thus able to provide the most comprehensive firmware-based solution to all our hardware/device partners and to mobile PC users, raising the bar for any other solution in the industry today. Announcements of any details relating to our customers' deployments will occur when those customers are ready to make their plans known to the market."

Phoenix FailSafe is the only embedded PC data protection and theft-loss solution in the market today, given that it is tightly integrated with Phoenix's firmware products, which are at the foundation of more than 60% of mobile PCs in the world today. FailSafe location-based technology allows the owner to locate and recover lost or stolen laptops, remotely encrypt, retrieve or delete the data on the device or disable the unit to prevent potential misuse. Because FailSafe is embedded into the core firmware layer, it is constantly available and functioning. FailSafe is able to offer a superior level of protection due to its tight integration with the hardware security mechanisms in a system.

Phoenix HyperCore is an ultra-efficient embedded hypervisor which allows an independent Linux-based operating system called HyperSpace(TM) to run specialized core services side-by-side with Windows Vista. The HyperSpace platform provides a unique computing environment called ManageSpace that PC designers and security innovators can use to host remote management and security applications that are available before, during and after Windows boot up and shut down. Operating like self-contained appliances, these embedded applications such as anti-virus and secure browsing provide stronger protection than is currently available on PCs.

HyperCore doesn't compromise the functionality and performance of Windows. In fact, by allowing applications such as anti-virus and remote management to operate outside of Windows, it actually enables Windows Vista to function more efficiently and secures the system even when Vista may be compromised.

About Phoenix Technologies

Phoenix Technologies Ltd. (Nasdaq: PTEC) is the global market leader in system firmware that provides the most secure foundation for today's computing environments. The PC industry's top system builders and specifiers trust Phoenix to pioneer open standards and deliver innovative solutions that will help them differentiate their systems, reduce time-to-market and increase their revenues. The Company's flagship products and services — AwardCore, SecureCore, FailSafe, HyperSpace, BeInSync and eSupport — are revolutionizing the PC user experience by delivering unprecedented performance, security, reliability, continuity, and ease-of-use. The Company established industry leadership and created the PC clone industry with its original BIOS product in 1983. Phoenix has 155 technology patents and 139 pending applications, and has shipped in over one billion systems. Phoenix is headquartered in Milpitas, California with offices worldwide. For more information, visit http://www.phoenix.com

Phoenix, Phoenix Technologies, Phoenix FailSafe, HyperSpace, BeInSync, eSupport, PC 3.0 and the Phoenix Technologies logo are trademarks and/or registered trademarks of Phoenix Technologies Ltd. All other trademarks are the property of their respective owners.

Safe Harbor

The statements in this release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, but not limited to, our PC 3.0 vision and our customers' deployments of our FailSafe and HyperCore products. These statements involve risk and uncertainties, including: technical challenges and delays, including code bugs and glitches; end-user demand for products incorporating our products and solutions; unexpected challenges relating to the relationship between Phoenix and our announced customers; our ability to attract and retain key personnel; product and price competition in our industry and the markets in which we operate; our ability to successfully compete in new markets where we do not have significant prior experience; the ability of our customers to introduce and market new products that incorporate and leverage our products ; and our ability to protect our intellectual property rights. For a further list and description of risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements in this release, we refer you to the Company's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements included in this release are based upon assumptions, forecasts and information available to the Company as of the date hereof, and the Company assumes no obligation to update any such forward-looking statements.

Contact: Phoenix Technologies Ltd. Global Press Office Tel : +1 408 570 1060 public_relations@phoenix.com

SOURCE Phoenix Technologies Ltd.

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