U.S. District Court Rejects Motion To Dismiss In Phoenix Technologies' Lawsuit Against DeviceVM

PRESS RELEASE

MILPITAS, Calif., Dec. 8 /PRNewswire/ -- Phoenix Technologies (Nasdaq: PTEC), a global leader in core systems software, security solutions and instant-on operating systems environments, today announced that a U.S. Federal District Court in Oakland has denied DeviceVM's motion to dismiss claims of interference of contract, unfair business practices and conversion of intellectual property assets in Phoenix's lawsuit against DeviceVM.

The Court rejected DeviceVM's California Uniform Trade Secret Acts pre-emption defense and ruled that Phoenix's lawsuit can move forward. Based on the decision, filed today in the United States District Court for the Northern District of California, Phoenix will be permitted to present evidence supporting their claims to the court.

"We applaud the decision and the judicial process can now move toward a resolution of the substantive issues," said Timothy Chu, Phoenix's Vice President, General Counsel and Secretary. "We look forward to addressing the merits of this case in federal court."

Phoenix filed an amended complaint in September 2009 alleging trade secret theft and conversion of intellectual property assets by DeviceVM and a former Phoenix employee. Phoenix is seeking restitution, compensatory and punitive damages, as well as a constructive trust.

A copy of the amended complaint can be found at: www.phoenix.com/devicevmlawsuit

About Phoenix Technologies Ltd.

Phoenix Technologies Ltd. (Nasdaq: PTEC), the leader in PC 3.0(TM) products, services and embedded technologies, pioneers open standards and delivers innovative solutions that enable the PC industry's top system builders and specifiers to differentiate their systems, reduce time-to-market and increase their revenues. The Company's flagship products and services -- SecureCore Tiano, Embedded BIOS, Phoenix Freeze, FailSafe, HyperSpace, and eSupport.com -- are revolutionizing the PC user experience by delivering unprecedented performance, security, reliability, continuity, and ease-of-use. The Company established industry leadership and created the PC clone industry with its original BIOS product in 1983. Phoenix has over 210 technology patents issued and pending, and has shipped firmware in over one billion systems. Phoenix is headquartered in Milpitas, California with offices worldwide. For more information, visit http://www.phoenix.com.

Phoenix, Phoenix Technologies, Phoenix SecureCore, SecureCore Tiano, Embedded BIOS, Phoenix Freeze, FailSafe, HyperSpace, PC 3.0, eSupport.com and the Phoenix Technologies logo are trademarks and/or registered trademarks of Phoenix Technologies Ltd. All other marks are the marks of their respective owners.

Contact: Shauli Chaudhuri Phoenix Technologies Global Press Office Tel. +1-408-887-3548 Email: [email protected]