Phoenix Technologies Announces Stock Buyback

Business Wire, August 21, 2000

Business Editors & High Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 21, 2000

Phoenix Technologies Ltd. (NASDAQ:PTEC) -- the global leader in system-enabling software solutions for PCs and connected digital devices -- today announced that its Board of Directors has authorized the repurchase of up to $30 million worth of the company's common stock over the next 24 months. The shares will be purchased on the open market and will be used to fund future stock option commitments and potential acquisitions yet to be identified.

"This decision reflects our confidence in Phoenix's direction and future, our belief that the company is significantly undervalued, and represents a tremendous investment opportunity" said Al Sisto, president and CEO, Phoenix Technologies.

About Phoenix

Phoenix is the global leader in system-enabling software solutions for PCs and connected devices. The Company's BIOS software has been sold to more than 600 customers worldwide and is designed into more than 70 million PCs sold annually, as well as embedded systems and information appliances. Products and services of the Platform Enabling Division play a critical role in linking computing and communication technologies for OEMs, and for Internet service and content providers benefiting the information consumer. The Internet Division, PhoenixNet, provides ongoing, customized services to individuals worldwide to maximize the potential of their Personal Computer. InSilicon, a majority owned subsidiary of Phoenix, provides communications and connectivity semiconductor intellectual property cores and protocol software. Founded in 1979, Phoenix is headquartered in San Jose, California. Information about Phoenix and its products is available at http://www.phoenix.com.

"Safe Harbor" Statement

The statements in this press release relating to matters that are not historical are forward-looking statements. Actual results could differ materially from these forward-looking statements. Readers are referred to the documents filed by Phoenix Technologies with the Securities and Exchange Commission, including its most recent filings on 10-Q, filed in July 2000, and form 10-K, filed December 22, 1999, which identify important risk factors.

Phoenix Technologies and PhoenixNet are trademarks and Phoenix is a registered trademark of Phoenix Technologies Ltd. All other trademarks are the property of their respective owners.