CORRECTING and REPLACING Phoenix Technologies Initiates New Revenue Op

    Business Editors/High-Tech Editors
    CORRECTION by...Phoenix Technologies Ltd.

    MILPITAS, Calif.--(BUSINESS WIRE)--May 10, 2005--In BW6313 issued May 9, 2005: Please replace the release with the following corrected version due to multiple revisions.

    The corrected release reads:

    PHOENIX TECHNOLOGIES INITIATES NEW REVENUE OPPORTUNITIES TO WORLDWIDE CHANNEL; PROVIDING YAHOO! PRODUCTS TO ELEVEN EARLY PARTNERS WORLDWIDE INCLUDING GIGABYTE, OLIDATA, SYSTEMAX, ECS, ARIMA, BIOSTAR AND MORE

    Phoenix Technologies(R) Ltd. (Nasdaq:PTEC) today announced the roll-out of a new value-building program that will initially distribute Yahoo! products through Phoenix's channel base, which ships over 100 million units per year. Through the new program, Phoenix will offer OEMs and system builders the Yahoo! toolbar and start page, providing them new ways to differentiate their products.
    "We are very pleased to combine the strength of our channel with Yahoo!'s industry-leading products and services," said Michael D. Goldgof, senior vice president and general manager of the Corporate Marketing and Products Division at Phoenix Technologies. "Our customer relationships offer Yahoo! prominence on millions of desktops and non-PC devices while offering the system builder a unique means of differentiation."
    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 Quanta, Biostar, Arima and Gigabyte. This demonstrates how Phoenix has a unique ability to provide aggregated services and revenue sharing opportunities through the channel.
    "Phoenix Technologies has deep relationships with OEMs and system builders, built from their 25 year legacy in the PC technology industry," said Laurence Marks, senior director of Business Development at Yahoo! Inc. "We see this as the first of several agreements that will extend the Yahoo! brand to system builders and OEMs worldwide."
    "Working with Phoenix 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 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 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 Edith Bollich, 49-898940638018 ebollich@hoffman.com

KEYWORD: CALIFORNIA INTERNATIONAL EUROPE INDUSTRY KEYWORD: SOFTWARE INTERNET E-COMMERCE COMPUTERS/ELECTRONICS PRODUCT MARKETING AGREEMENTS SOURCE: Phoenix Technologies Ltd.

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