Phoenix and Eltan Announce System-Enabling Software Agreement
Eltan to Target Integration Services and Distribution of PhoenixBIOS(TM) and AwardBIOS(TM) to European and Middle Eastern Small and Mid-Sized Industrial Appliance Manufacturers

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 23, 1999-- Phoenix Technologies Ltd. -- a worldwide leader in system-enabling software solutions for connected computers -- and Eltan B.V. -- a privately held Dutch PC and Communication Technology Engineering Company -- today announced that they are finalizing an agreement specially targeted to market high quality engineering services, combined with high quality system-enabling software, to the growing number of industrial ''appliance'' manufacturers in Europe and in the Middle East.

Eltan has been providing value-added engineering services to the embedded industry in this market for Phoenix for many years. Under the terms of this agreement, Eltan will become a value-added reseller of Phoenix's system-enabling software, also known as BIOS, to small to mid-sized manufacturers requiring x86 platform enabling software in binary form.

''Our system engineering expertise and the Phoenix software, combined with our one-stop shopping model, will enable Eltan to efficiently serve this market segment,'' said Gerard Duynisveld, president, Eltan B.V. ''This agreement allows us to offer customers access to the best system-level software available, in combination with all standard support tools, at an affordable price. We take care of the technology, providing our customers with complete platform-enabling solutions.''

''As our system-enabling software continues to be popular in the industrial and embedded systems market, we are pleased to be extending our long-standing and close relationship with Eltan and include them as a value-added reseller,'' said David Everett, senior vice president of Phoenix. ''Our experience with Eltan confirms their reputation for quality BIOS integration services, system level engineering and timely delivery of services. With this agreement, we will continue broadening our reach within the embedded systems industry and see Eltan being come an extension of our own engineering, sales and support organizations.''

About Eltan
Eltan specializes in providing enabling solutions in (embedded) PC and Communication Technology and provides engineering services from its offices in The Netherlands. Eltan services include hardware design, firmware (BIOS), drivers, testing, qualification, (RT) Operating systems, project management, consultancy, etc.

Eltan maintains technical relations with all major vendors. Eltan B.V. has offices in Den Dungen ('s-Hertogenbosch), The Netherlands and information about Eltan and its services/products is available at www.eltan.com

About Phoenix
Phoenix is a worldwide leader in BIOS software designed into more than 70 million PCs sold annually and in millions of other digital devices.

Phoenix products and services play a critical role in linking computing and communication technologies for OEMs and for Internet service and content providers benefiting the information consumer. Phoenix is also the recognized industry leader in connectivity semiconductor software intellectual property (IP) cores and other connectivity standards.

Phoenix's ebetween division's Internet strategy enables Internet service and content providers to better serve their customers. Founded in 1979, the international company is headquartered in San Jose. Information about Phoenix and its products is available at www.phoenix.com.

Note to Editors: Phoenix Technologies is a trademark and Phoenix is a registered trademark of Phoenix Technologies. All other trademarks are the property of their respective owners.

''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995:

With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. These forward-looking statements include, but are not limited to, references regarding the contemplated agreement. The Company cautions readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the following: the uncertain performance, user adoption, and financial results from integrating products currently in development into existing ROM technology; protection of the Company's intellectual property rights and risk of infringement claims against the Company's intellectual property; the size and timing of and fluctuations in end-user demand for the products and services described above; the response of third parties, including those with significantly greater resources than Phoenix, to the contemplated joint development; the fact that the Company's markets are characterized by rapidly changing technology, evolving industry standards and frequent introductions of new products and enhancements, and the Company's ability to respond to such changes; difficulties which the Company and its development partner may experience in completing the development of products, services and technologies called for in the contemplated business model; the highly competitive nature of the markets for the Company's products; the phase-out or early termination of the Phoenix's products on PC systems; the Company's ability to attract and retain skilled personnel; and the Company's reliance on certain third-party suppliers. These and other factors that could cause actual results to differ materially from those in the forward-looking statements are also discussed in the Company's filings with the Securities and Exchange Commission, including its recent filings on Form 10-K and Form 10-Q.

Contact:

Eltan
Gerard  Duynisveld, +31-(0)73-5944662
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or

Phoenix Technologies
Toni Goodrich, 408/570-1000
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or

Walt & Company
George Millington or Arlene Lim, 408/496-0900
(Media Relations for Phoenix Technologies)
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or

Morgen-Walke Associates
Erica Mannion or Alicia Nieva Woodgate, 415/296-7383
(Investor Relations for Phoenix Technologies)