FUJITSU INTEGRATES PHOENIX FIRSTWARE VAULT INTO PCS.

Phoenix Technologies Ltd. (NASDAQ:PTEC), a provider of global core system software for PC systems and connected digital devices for 25 years, has expanded its licensing agreement with Fujitsu Limited. Phoenix Core Managed Environment (cME) certified applications are being incorporated into Fujitsu's new spring PC and notebook models FMV-DESKPOWER C90GW/C and FMV-BIBLO MG70G/ST sold in Japan. These models, carrying Phoenix FirstWare Vault and other applications running on Phoenix cME Console, are available online and in stores now. The addition of Phoenix FirstWare Vault will allow users to reinstall factory-configured software programs without manufacturer-supplied CDs while saving Fujitsu from distributing installation CDs.

"Users expect much more from their PCs today," said Takashi Imamura, group senior vice president, Fujitsu Limited Personal Systems Business Group. "They want machines that are secure, simple to use and easy to maintain. We have partnered with Phoenix to help us deliver these essential requirements. With the addition of Phoenix FirstWare Vault, users can restore their Fujitsu PCs applications themselves, without technical support. It also helps us save materials because we are shipping fewer software CDs/DVDs with each PC. At the same time, we are enhancing ease of use for our customers."

Phoenix FirstWare Vault is a combination of a host protected area (HPA) -- a special, protected environment on the computer for storing data -- and a Windows application for accessing "virtual CD" data, placed by the manufacturer into the HPA. This "Phoenix cME environment" is created by intelligently combining advanced Phoenix Core System Software (CSS) capabilities with a special, protected area of the hard drive, enabling CD content and special applications to exist in a highly compressed form. The stored information is accessible as a virtual CD within Windows by using the special Phoenix FirstWare Vault software. However, the protected installation CD data is invisible to Windows and immune to disk formatting and partitioning software. Therefore, unlike competing solutions, it is protected from virus attacks, software corruption, and user errors.

Phoenix cME Console is a platform from which to launch and manage trusted Phoenix cME certified applications. It is a customizable product that is built into the heart of a digital device. The Phoenix cME ISV program allows third-party companies to secure their applications as part of the Phoenix cME environment.

"Our expanded agreement with Fujitsu continues the rapid adoption of Phoenix cME solutions among top PC manufacturers and OEMs," said Michael Goldgof, vice president of Corporate Marketing and Products Division for Phoenix. "Companies like Fujitsu can strengthen and differentiate their market positions with Phoenix cME and its built-in applications and technologies. Phoenix delivers secure software innovations to improve the user experience, increase productivity and reduce manufacturing and support costs."

About Phoenix

cME Phoenix cME is an open software platform, centered on Core System Software, that enables the management and integration of functionality into the heart of digital devices. Applications and technologies, such as utilities, productivity, security, and content delivery tools, can be accessed independently and in support of the operating system from the Phoenix cME platform. The platform is available for PCs, servers, embedded systems and information appliances.

About Phoenix

Founded in 1979, Phoenix Technologies helped launch the digital revolution when it created the machine-independent BIOS software, which ships in more than 100 million new systems each year. Phoenix leveraged that core-level experience to develop Core System Software, which moves beyond BIOS for the age of networked devices. Today, Phoenix solutions activate, secure, connect, and recover the world's best-known systems. These solutions operate from the Phoenix Core Managed Environment (cME), where they're built in and protected from viruses, user errors, hackers, and corruption. Phoenix is headquartered in Milpitas, Calif. USA (Silicon Valley), with offices in global business and technology centers.

Phoenix Technologies can be found on the World Wide Web at http://www.phoenix.com/.

For more information, call 415/392-8282.