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Phoenix Technologies Ltd. and Arcot Systems Team to Deliver Hardware-Strength, Layered Authentication; Strong User Authentication Now Fortified with Trusted Device Authentication.

SAN JOSE, Calif. -- Phoenix Technologies, Ltd. (Nasdaq:PTEC), the global market leader in device-defining technologies, and Arcot Systems, Inc., a leading provider of multi-factor authentication and digital signature solutions, today announced at RSA Conference 2006 a combined solution that allows organizations to provide hardware-strength, layered authentication without hardware tokens. Financial institutions and enterprises can now effectively and economically deploy robust, multi-factor user authentication combined with strong device authentication -- completely in software.

Arcot provides powerful multi-factor user authentication based on its ArcotID. By combining with Phoenix's TrustConnector(TM) 2 application for device identification, the joint solution enables an additional level of device access control. Administrators can now prevent unauthorized access to their networks, and lost or stolen software credentials are no longer an issue.

"Strong layered authentication is rapidly becoming an enterprise requirement," observed Albert E. Sisto, president, and CEO of Phoenix Technologies, Ltd. "Customers can now benefit from Phoenix's device authentication, which, when fully integrated with Arcot System's multi-factor user authentication system, provides a transparent endpoint security solution."

Strong Layered Authentication

Network access involves two factors at the endpoint: the user and the device. As a requirement for authentication to a network, ArcotID requires that users possess a secure, encrypted software token that can either reside protected on the device, or in a standard USB token. TrustConnector 2 creates a unique device identity that is locked to the device. Together, the applications create a robust multifactor authentication solution that limits access to authorized users and devices. This highly secure joint software offering safeguards business applications against such threats as brute force, phishing, pharming, trojan, and man-in-the-middle attacks, and credential sharing or stealing.

"Arcot's partnership with Phoenix offers our customers the next level of multifactor authentication," observed Ram Varadarajan, president and CEO of Arcot Systems. "The Arcot-Phoenix layered authentication system provides a software alternative that can work well in tandem with existing hardware authentication infrastructures, and more importantly, position enterprises for the next wave of online application functionality."

Availability

The combined solution is being demonstrated at RSA Conference 2006 this week at the Arcot Booth #2209. Product is expected to be widely available through resellers in the second quarter of this calendar year.

About Phoenix TrustConnector

TrustConnector(TM) is easy-to-install device identity software that enables seamless, built-in identification of x86 devices to IP networks while enhancing the protection of digital credentials for Windows applications. This device authentication software ensures that only PCs or other devices belonging to, or trusted by the organization, can connect to the network. The TrustConnector software securely and uniquely identifies individual devices as they attempt to authenticate and prevents unauthorized access -- even if the attacker has managed to steal or capture valid user IDs, passwords, one-time pass-codes, or digital certificates and keys.

About Phoenix Security SDK

The Phoenix Security Software Development Kit (SDK) was created so software application developers can take advantage of Phoenix FirstBIOS(TM) ROM-based secure storage features. The SDK allows application vendors to integrate Phoenix security technology into their software applications seamlessly to perform a wide array of security functions.

About ArcotID

The ArcotID is a patented technology that acts like a virtual smartcard, providing strong authentication and digital signature capabilities with the convenience of passwords. Whether used as a robust standalone solution or in tandem with other access control and hardware systems, Arcot's products meet the need for strong authentication while providing customers with a seamless, user-friendly experience.

About Phoenix Technologies Ltd.

Phoenix Technologies Ltd. (Nasdaq:PTEC) is a global market leader in device-defining software that assures endpoint confidence, from the start. The company first established dominant industry leadership 26 years ago with BIOS software, currently has over one billion products deployed and continues to ship in over 100 million new systems each year. From this unique foundation of core system level expertise and firmware offering the highest levels of reliability, Phoenix has created a portfolio of innovative software products that simply and easily identify and restore devices, thereby ensuring unparalleled endpoint security and availability.

With a focused commitment to the highest levels of customer confidence and satisfaction, Phoenix serves enterprise and government channel partners, ODMs, OEMs, system builders and ISVs by enabling them to decrease time to market, differentiate their products, create value, increase profits and lower cost of ownership. Phoenix is headquartered in Milpitas, California with offices worldwide in global business and technology centers. For more information, visit www.phoenix.com.

About Arcot Systems

Arcot is a leading provider of secure e-payment, digital signature, and strong authentication software solutions. The company's cost-effective and highly scalable software-based authentication products limit online transaction fraud and enable advanced functionality such as the turn-key issuance of roaming credentials and secure electronic document exchange. Arcot's products meet the need for strong, multi-layered transactional security while providing customers with a seamless, user-friendly experience. The company's offerings are compliant with U.S. and international standards including 3-D Secure, Identrus, and FFIEC Internet Banking Authentication recommendations in the financial services realm, and with SAFE (Secure Access for Everyone) in the bio-pharmaceutical industry. Enterprises also work with Arcot to meet legislative requirements such as Sarbanes-Oxley and HIPAA.

Arcot is a private company headquartered in California's Silicon Valley, with offices in the United Kingdom, Germany, and India. For more information visit www.arcot.com.

http://www.arcot.com/releases.html

Arcot Systems, ArcotID and all associated marks are the property of Arcot Systems, Inc. Phoenix, Phoenix Technologies and the Phoenix Technologies logo, TrustedCore, First BIOS, Security SDK and TrustConnector are trademarks and/or registered trademarks of Phoenix Technologies Ltd. All other trademarks are the property of their respective owners.
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Date:Feb 15, 2006
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