PHOENIX TEAMS WITH CYBERLINK FOR MULTIMEDIA SUITE.

Phoenix Technologies Ltd. (NASDAQ:PTEC), Milpitas, Calif., has announced a partnership with CyberLink Corp., a world leader in digital home solutions, to produce a multimedia suite optimized for the Phoenix HyperSpace(TM) platform. Operating within the secure, instant-on parallel O/S environment, the platform will provide instant access to a DVD player and other multimedia capabilities within seconds of turning on a mobile PC.

The multimedia suite from CyberLink will be built on the Phoenix HyperSpace platform, a secure and compact environment that hosts instant-on applications available before, during and after Windows boots up and shuts down. HyperSpace is enabled by an efficient firmware or BIOS-based hypervisor from Phoenix called HyperCore(TM).

"Phoenix Technologies is transforming the mobile computing experience with HyperSpace innovation," said Woody Hobbs, president and CEO of Phoenix Technologies. "Our partnership with CyberLink will allow people to see videos or play music or other multimedia content within seconds of turning on their laptop. At the same time, they can easily click back and forth to applications running on the primary operating system, without rebooting their PC. This collaboration illustrates how Phoenix HyperSpace is introducing a new world of possibilities, allowing people to use their mobile computer as a purpose-built multimedia appliance and as a full-featured PC."

HyperSpace will include a wide range of multimedia capabilities from CyberLink, allowing users to view high-definition movie content on Blu-ray. Users will gain the productivity of one-key toggle between the DVD application and Windows, while minimizing power requirements by keeping Windows on suspend (sleep) mode when viewing a video. PC battery life is dramatically increased, allowing people to operate their PC and view content for a longer time when needed, for instance, throughout long airline flights.

"CyberLink has a long history of delivering a powerful digital media experience on the PC," said Alice H. Chang, CEO of CyberLink Corp. "Our partnership with Phoenix to leverage the HyperSpace platform makes it possible to offer digital media entertainment for laptop users while conserving valuable battery power."

The Phoenix HyperSpace platform provides a unique computing environment that PC designers, security innovators and content providers can use to create instant-on compact and secure applications that are available before, during and after Windows boot up and shut down. Operating like self-contained appliances, these purpose-built applications will be embedded into new computers by PC system vendors. Next-generation PC users will benefit from one-click remote system management, lower battery consumption and embedded security providing stronger protection than is currently available. At the same time, users will have access to a host of possible instant-on applications and content including multi-media players, IP soft phones, email, instant messaging, Web 2.0 browsing, safe shopping (secure checkout) and more.

About CyberLink

CyberLink Corp is the leader and pioneer in enabling digital multimedia on PCs and CEs. Backed by a group of high-caliber software engineers, CyberLink owns its core codec and a number of patented technologies. CyberLink has built a solid reputation for delivering high-quality, interoperable, and fast time-to-market solutions that keep our OEM partners on the leading edge. Our business partners include leaders in the PC industry: drive manufacturers, graphics-card makers, and top-5 desktop and notebook brands. Today, CyberLink's software solutions include: complete applications for Blu-ray Discs and HD DVDs, Digital Home entertainment, Mobile TV and human resource development. With customers spanning from multi-national corporations to small/medium-sized businesses, and from power users to home users, CyberLink has enjoyed rapid and consistent growth leading to a record breaking IPO in 2000 on the Taiwan Over The Counter Exchange . Currently, CyberLink is listed on the Taiwan Stock Exchange (ticker symbol: 5203.TW). CyberLink's worldwide headquarters is in Taipei. To keep up with market demands, CyberLink has operations in North America, Europe and the Asia Pacific region, including Japan.

For more information, visit http://www.cyberlink.com.

About Phoenix Technologies

Phoenix Technologies Ltd. (NASDAQ:PTEC) the global market leader in system firmware that provides the most secure foundation for today's computing environments. The PC industry's top 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, AwardCore, SecureCore, FailSafe and HyperSpace, are revolutionizing the PC user experience by delivering unprecedented security, reliability and ease-of-use. The company established industry leadership with its original BIOS product in 1983, 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 or call 408/570-1060.