Phoenix Celebrates 25th Anniversary; Over 1 Billion Copies of Our Software Delivered.

MILPITAS, Calif. -- Phoenix Looks Forward to 25 More Years of Enabling, Protecting and Recovering Connected Digital Devices

Phoenix Technologies Ltd. (Nasdaq:PTEC) today announced that the company is celebrating its quarter-century of conducting business as a leader in Core System Software and enabling, protecting and recovering PCs and x86-based digital devices.

Phoenix, recognized as one of the key technology catalysts driving the adoption of the PC compatible architecture, celebrates its 25-year milestone serving the PC and digital device BIOS market. As the PC and device market evolves in the age of global e-business and e-commerce to reflect the growing demand for built-in device authentication and security, Phoenix is committed now and in the next 25 years to delivering new architectural innovation as follows:

--Advanced device-defining technology with integrated cryptography and firmware-advantaged device defense that re-invents the core of the x86 PC in the internet age (the Phoenix TrustedCore Family);

--Intelligent Pre-OS Application Environment for delivering an entirely new class of pre-OS applications to business users and consumers (the Phoenix cME Platform, Console and FirstWare family of systems recovery applications, Recover Pro);

--Firmware, pre-OS device and network security capabilities.

"For 25 years Phoenix has been an industry leader in providing firmware and software that delivers better security, recoverability and data protection to PC and consumer devices running Microsoft Windows platforms," said Tom Phillips, General Manager of Windows Hardware at Microsoft Corp. "We congratulate Phoenix and look forward to continuing our work with the company as it continues to bring unparalleled levels of both innovation and customer value."

The Phoenix Journey

The Phoenix journey began 25 years ago, when a small group of engineers first met the demanding architectural challenge of IBM PC compatibility and helped unleash a 'clone' market tornado that made the x86 personal computer ubiquitous. Phoenix didn't simply witness Moore's Law from a distance. The company helped it take root, as new generations of more powerful, more flexible and more affordable x86 architecture PCs came to life, four out of five of them were booted, tested and authenticated by Phoenix BIOS.

In the course of these past 25 years, the company has been awarded over 120 patents and has another 160 patents in process for the kinds of breakthrough capabilities PC users take for granted today. The PC has become the principal 'endpoint' of a global network enabling a revolution in business productivity and consumer commerce. For the next 25 years, the Phoenix mission is to make all x86 devices more secure, more reliable and more adaptive than ever before.

"Phoenix will be at the center of the movement to pervasive 64-bit computing, enabling AMD's partners, OEMs, ODMs and system builders to deliver highly differentiated systems to users," said Henri Richard, AMD's executive vice president, worldwide sales and marketing. "Like AMD, Phoenix has been a key innovator in the technology industry, and we expect that Phoenix will continue to create unique security, device-defining technology and advancements over the next quarter-century."

At Phoenix, the company is committed to making all x86 devices 'secure from the start' by providing the next generation of core system software with built-in 'device authentication' and OS-independent 'device defense' so that IT professionals will know 'who is on the network.' And when hostile network attacks do happen, and worms and viruses spread to end-user systems, the Phoenix vision provides for a new 'core managed environment' where protected 'pre-OS' recovery applications deliver on the promise of self-healing systems.

"As the PC and consumer device market has emerged and evolved over the past 25 years, Phoenix has been at the foundation of both product and technology innovation, and has been the leader in delivering increased security and device ease-of-use for businesses and users alike. As desktops became more powerful, and portables morphed into laptops and then into notebooks, Phoenix was there -- providing brand name PC manufacturers with the Core System Software integrity needed to transform generations of silicon components from hundreds of providers into industry standard devices," said Albert Sisto, Phoenix Chairman, President and CEO.

"For the next 25 years, the Phoenix vision is to have our unique software play a vital role in adding differentiated value to our customers as the x86 architecture brings price/performance benefits beyond the PC category, from a person's car to their kitchen to the hundreds of new device types that will define the industry in coming decades," Mr. Sisto added.

Free Limited Edition Technology Innovation Timeline Poster

Over the past 25 years, Phoenix produced innovative technologies that helped the PC and digital device industry develop new products that were tremendously influential in the global economy. These Phoenix software innovations and software standards that led to the creation of milestone products also led to the streamlining of customer service, process development, faster time to market and market innovation by many leading global corporations.

Phoenix has captured many of the company's 25 years of technology innovations and mapped them to some resulting milestone product development by global technology companies such as Sun, Apple, Disney, Toshiba, Acer, Adobe, IBM, Intel, Microsoft, Motorola, H-P, Dell, and others, in a free, limited edition Innovation at the Core Timeline poster. The poster can be obtained at www.phoenix.com through the 25 Years of Innovation homepage banner.

About Phoenix Technologies

Phoenix Technologies Ltd. develops a complete product suite of Core System Software, tools and applications to deliver trusted, seamless computing to smart devices for an Internet-connected world. Phoenix Technologies helped launch the PC industry nearly 25 years ago. Today we are extending our leadership and knowledge at the core of machines, beyond the PC to a wide range of platforms and devices.

Phoenix Core System Software has set the standard for the world's leading branded PC OEMs and their global network of supply chain and software partners. Today, Phoenix solutions enable, secure, connect and recover the world's best-known systems. These solutions are built into the device core, where they are protected from viruses, user errors, hackers and corruption. Phoenix Technologies is headquartered in Milpitas, Calif. (Silicon Valley), with offices in global business and technology centers. For more information, visit www.phoenix.com/.

Phoenix, Phoenix Technologies and the Phoenix Technologies logo, FirstWare Recover Pro, TrustedCore, Console Platform and Vault are trademarks and/or registered trademarks of Phoenix Technologies Ltd. All other trademarks are the property of their respective owners.