Phoenix Technologies' OEMs say ``Yahoo!'', Initiate New Revenue Opp

    Business Editors/Technology Editors/Internet Writers

    MILPITAS, Calif.--(BUSINESS WIRE)--May 10, 2005--Phoenix Technologies(R) Ltd. (Nasdaq: PTEC) today announced the roll-out of a new revenue and value building distribution program that will initially distribute the tool bar and start page for Yahoo!(R) Inc. (Nasdaq: YHOO) through Phoenix's channel base that ships over 100 million units per year. Both companies called the announcement "the first of several" agreements that could revolutionize the relationship between the portal and the OEMs and system builders.
    "Phoenix Technologies has deep relationships with OEMs and system builders, built from their 25 year legacy in the PC technology industry," said Laurence Marks, director of Business Development at Yahoo! Inc. "We see this as the first of several agreements that will extend the Yahoo! franchise into an un-served market and drive a new value layer for system builders and OEMs."
    This announcement has already garnered interest from seven of the largest system builders in Europe and North America including iQon, Olidata, Evesham, Max Group, ECS and Systemax. Added to the list are four of the world's best known ODMs in Taiwan including Arima, Quanta, Biostar and Gigabyte. Phoenix has a unique ability to provide aggregated services and revenue sharing opportunities through the channel.
    "Working with Phoenix and Yahoo! will enable us to provide additional value and competitive differentiation to our mutual customers," said customer Tammy Thompson, general manager, Systemax Manufacturing. "We look forward to building these types of value-added products and services as market requirements expand."
    "We believe this partnership with Yahoo! leverages the strengths of both companies into a win-win across the business ecosystem," said Michael D. Goldgof, senior vice president and general manager of the Corporate Marketing and Products Division at Phoenix Technologies. "The agreement gives Yahoo! instant prominence on millions of desktops and non-PC devices while offering the system builder a unique means of revenue generation."
    "We are excited to enter this strategic relationship with Phoenix Technologies as it underscores our commitment to providing our customers with products and services that enrich their online computing experience," said Tony Liao, associate vice president, Product Marketing Division, Gigabyte Technology. "Additionally, this will increase our ability to competitively differentiate our products with value-added products and services."

    About Yahoo!

    Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 world properties and is available in 13 languages.

    About Phoenix Technologies

    Phoenix Technologies develops a complete product suite of Core System Software, tools and applications to deliver trusted, seamless computing to digital devices for an Internet-connected world. Phoenix Technologies helped launch the PC industry nearly 25 years ago. Today the company is extending its 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 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 are trademarks and/or registered trademarks of Phoenix Technologies Ltd. All other trademarks are the property of their respective owners.

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CONTACT: Phoenix Technologies Ltd. Suzy Bauter, 408-570-1252 suzy_bauter@phoenix.com or The Hoffman Agency Rob Carpio, 408-975-3071 rcarpio@hoffman.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: SOFTWARE INTERNET E-COMMERCE MARKETING AGREEMENTS SOURCE: Phoenix Technologies Ltd.

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