Phoenix Technologies to Acquire Touchstone Software, A Global Leader In Online PC...

Phoenix Technologies to Acquire Touchstone Software, A Global Leader In Online
PC Diagnostics and Software Update Technology
-Phoenix Extends Leadership in PC Industry; Continues to Build on its
Foundation for PC 3.0(TM)

MILPITAS, Calif., April 10 /PRNewswire-FirstCall/ -- Phoenix Technologies
(Nasdaq: PTEC), the global leader in core systems software, today announced
that it has signed a definitive agreement to acquire Touchstone Software
Corporation (OTC Bulletin Board: TSSW), a global leader in computer
diagnostics and PC update technology. By acquiring Touchstone, Phoenix is
positioned to deliver the most complete offering for the deployment and
management of PC-related products and services in the PC industry.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070410/SFTU048LOGO )
As part of its ongoing PC 3.0 strategy, Phoenix Technologies' acquisition
of Touchstone will enable Phoenix to develop a strong online presence and
infrastructure for web-based service delivery. Phoenix will offer services
based on Touchstone technology to PC OEMs/ODMs, SMBs and consumers, as well as
incorporate the technology into its own products.
"Following close on the heels of our BeInSync announcement, this
acquisition is yet another giant leap forward in our effort to simplify all
aspects of the PC user experience," said Woody Hobbs, President and CEO of
Phoenix Technologies. "Our PC 3.0 vision is all about simplifying PC users'
lives. With the acquisition of Touchstone, we are taking PC management
technology to the 'one-click' level as well as strengthening our ability to
support online delivery models. We are also broadening our opportunities for
new market share gains and new sources of revenue via the web.
"As the PC becomes more entrenched in everyday life, users need simple and
immediate access to web-based automated support services including software
updates and the analysis and optimization of device performance and security.
PC OEMs are facing increasing costs in order to adequately support their users
at a time when PC prices and margins are declining. We want to turn the OEM's
costs into profits while simultaneously delivering better service to the
consumer and business user. Touchstone provides us with the tools and platform
to build 'anytime anywhere' capabilities into a wide array of applications
that will enable our OEM customers to facilitate a simple and rewarding online
experience for their end users -- and generate a steady revenue stream for
themselves."
Jason Raza, President and CEO at Touchstone Software, said, "The
Touchstone team has always believed in improving and automating customer
support and software update delivery. As part of a customer-focused company
like Phoenix Technologies, we will now have the resources to not only unlock
that potential, but to leverage its OEM and ODM customer base to create truly
innovative real-world uses for our products and services online. We're very
excited about our future prospects."
The acquisition, which is expected to close in Q2 of calendar year 2008,
is subject to customary closing conditions, including approval by the
stockholders of Touchstone.
About Phoenix Technologies
Phoenix Technologies Ltd. (Nasdaq: PTEC) is 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
Phoenix, Phoenix Technologies, Phoenix FailSafe, HyperSpace, HyperCore, PC
3.0 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.
Safe Harbor
The statements in this release include forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, regarding, but
not limited to, the closing of the acquisition, our PC 3.0 vision, improving
and expanding Touchstone's products and solutions, the integration of
Touchstone's products and solutions into our offerings, and leveraging our
customer base. These statements involve risk and uncertainties, including:
our ability to close the transaction within the stated timeframe or adverse
circumstances that would prevent the consummation of the transaction;
technology and business integration challenges and delays; our ability to
innovate and develop new products and services in a timely manner; customer
demand for our products and solutions; the ability of our customers to
introduce and market new products that incorporate our products and solutions;
the product offerings of competitors, especially with respect to functionality
and time-to-market; our ability to retain key employees; and our ability to
adequately protect our intellectual property rights. For a further list and
description of risks and uncertainties that could cause actual results to
differ materially from those contained in the forward looking statements in
this release, we refer you to the Company's filings with the Securities and
Exchange Commission, including, but not limited to, its annual report on Form
10-K and quarterly reports on Form 10-Q. All forward-looking statements
included in this release are based upon assumptions, forecasts and information
available to the Company as of the date hereof, and the Company assumes no
obligation to update any such forward-looking statements.
Contacts:
Shauli Chaudhuri
Tel. +1 408-570-1060
E-mail: public_relations@phoenix.com

Cedric Vanhaver or Jeff Smith
Tel : +1 650-433-4154
Email : phoenix@globalfluency.com

SOURCE Phoenix Technologies Ltd.

Shauli Chaudhuri, +1-408-570-1060, public_relations@phoenix.com; or Cedric
Vanhaver or Jeff Smith, +1-650-433-4154, phoenix@globalfluency.com