Phoenix Technologies and SanDisk Partner

Phoenix Technologies Ltd. announced a partnership with SanDisk Corporation to drive
innovation for next-generation mobile computers. The companies will
collaborate to optimize Phoenix core system firmware for SanDisk’s
solid state drives (SSDs) and Vaulter Disk to enable seamless
operation, high performance and reduced power consumption for the
rapidly growing mobile computing segment.

Additionally, the companies will collaborate to offer Phoenix
HyperSpace combined with SanDisk’s Vaulter Disk to offer a
reliable, always-available, power efficient and secure instant-on
environment to run purpose-built OEM applications such as multi-media
players and Internet browsers, alongside the full power of Windows
Vista. Vaulter Disk is a flash-based module that works side-by-side
with a PC’s hard drive to store and launch the computer’s operating
system and software applications. This solution protects the OS from
HDD mechanical failures and provides enhanced performance over a PC
that has only a hard drive.

"The Phoenix-SanDisk partnership paves the way for OEMs to rapidly
ship new ultra-light, high-performance notebooks and Mobile Internet
Devices (MIDs)," said Woody Hobbs, President and CEO of Phoenix
Technologies. "In addition, with the one-two punch of HyperSpace and
Vaulter Disk, OEMs can now innovate and create entirely new highly
differentiated notebooks that delight the mobile user and improve OEM
profitability."

"The combination of these technologies enhances the performance
advantages of SSDs over typical hard disk drives (HDDs)," said Rich
Heye, Senior Vice President and General Manager for SanDisk’s Solid
State Drives (SSD) Business Unit. "As a result of the better user
experience and improved performance enabled by this collaboration,"
Heye added, "OEMs are apt to accelerate the market trend of SSD
adoption."

Phoenix Hyperspace is a compact and secure application environment
on the PC that runs side-by-side with an OS such as Windows Vista. This
new environment gives PC users the benefit of having key productivity
applications available ‘instant-on’ in a very predictable fashion,
while at the same time being able to run all of their Windows
applications at full performance. Phoenix’s vision for PC 3.0,
which includes ease-of-use, virtualization and mobile data security as
key features, is based on the HyperSpace platform.

Vaulter Disk combined with Phoenix HyperSpace technology will
deliver unmatched speed while providing instant-on applications that
allow users to watch DVDs, surf the Web or access email in seconds
after turning on their laptops. This solution has the added benefit of
significantly lower battery power consumption and higher reliability
and ruggedness than what users are familiar with in the traditional
Windows environment.

Phoenix Technologies Ltd.

SanDisk Corp.