PHOENIX TECHNOLOGIES AND M-SYSTEMS TEAM TO DELIVER FLASH DATA MANAGEMENT
SOLUTION TO PC CARD USERS

Phoenix PicoCard and PhoenixCard Manager to Include M-Systems TrueFFS For
PC Card and Miniature Flash Cards

Santa Clara, CA (April 24, 1996) -- Phoenix Technologies Ltd., (NASDAQ:
PTEC), the world's leading supplier of system-level firmware and M-Systems
Inc. (NASDAQ: FLSHF), the world's leading Flash File System provider,
today announced a collaborative agreement to include Flash Translation
Layer (FTL) technology in Phoenix software for PC cards. Phoenix PicoCard,
new software designed for the emerging embedded and appliance PC markets,
will include M-Systems TrueFFS technology to support the new FTL standard
for FLASH PC Cards as well as new Miniature FLASH cards. PhoenixCard
Manager, designed for notebook and desktop PCs, will now support FTL Flash
Cards as a standard feature worldwide.

The FTL standard, recently adopted by the Personal Computer Memory Card
International Association (PCMCIA), specifies the way data is stored on
FLASH memory cards, and makes them appear as ordinary disk drives to
notebooks and other PC-based systems. This allows data collected from
devices such as digital cameras, cellular phones, or other hand held
appliances to be fully compatible with PCs.

"The PhoenixPICO and M-Systems collaboration opens the door for new
consumer electronic devices to use Intel's Miniature Cards as a portable
storage medium and seamlessly transport data back to the PC," said Gary
Forni, software marketing manager, Intel Corporation. "PhoenixPICO in
PCMCIA software and M-Systems' flash translation layer software will
significantly speed the adoption of the new miniature card standard."

In this agreement, M-Systems is providing a special version of their
industry leading TFFS FLASH technology that utilizes Phoenix PicoCard's
patent pending software architecture. This enables developers of Special
Purpose PCs to use the new Miniature FLASH cards - even in systems with
limited memory. Special Purpose PCs are an emerging segment of the
industry that includes industrial appliances, hand-held devices such as
Smart Phones and Personal Digital Assistants (PDAs), and home appliances,
such as set-top boxes, network computers, and the proposed $500 Internet
terminal.

TrueFFS, a patented technology of M-Systems, was developed to provide full
disk emulation to the sector level using standard flash components.
TrueFFS provides high reliability, high performance and full
interoperability and runs under a wide range of Operating Systems
including: DOS, Windows, Windows-95, QNX, pSOS, GEOS and many others.

"Flash memory is a critical component in the next wave of appliance-like PC
based devices," said Dana Gross, President of M-Systems, Inc. "Adding
TrueFFS to Phoenix PicoCard and PhoenixCard Manager will speed the OEMs
ability to provide this important memory option in their products and will
increase M-Systems' FlashDisk products compatibility over a wider range of
systems."

Phoenix PicoCard was introduced in February as the first PCMCIA software
designed for Special Purpose PCs. It's patent pending software
architecture provides full PCMCIA functionality in a very small memory
environment, including program execution directly from ROM (Read Only
Memory). PhoenixCard Manager, shipped in millions of notebook PCs
worldwide, will now provide FTL support for PC FLASH Cards by using the
M-Systems TrueFFS technology.

"Phoenix has a dedicated engineering team addressing the unique
requirements of the emerging Special Purpose PC and PC Card markets," said
Gayn Winters, Chief Technology Officer at Phoenix. "By supporting the new
FTL flash standard, Phoenix will enable OEMs to make low cost flash-based
devices that are successful in both traditional PC and Special Purpose PC
markets."

Phoenix Technologies Ltd. is a worldwide leader supplying essential
software to PC manufacturers. System-level software products, such as
PhoenixBIOS, NoteBIOS, PhoenixPICO, and PhoenixCard Manager, allow PC
manufacturers to increase product differentiation, reduce product cycle
time to market and reduce internal engineering costs. Phoenix is
developing an expanding family of software products, including Phoenix
Telephony Suite and Phoenix MUSE, that increase personal computer
functionality and make PCs easier to use. Information on all Phoenix
Technologies products is available on the Worldwide Web at:
http://www.ptltd.com.

M-Systems Flash Disk Pioneers (NASDAQ: FLSHF) develops, manufactures, and
markets flash data storage solutions utilizing TrueFFS, including a range
of PCMCIA flash cards, PC Flash Disks, and DiskOnChip devices. M-Systems,
Inc. is the U.S. subsidiary handling all sales and marketing activities in
North America. For more information, contact M-Systems at 4655 Old
Ironsides Drive, Suite 290, Santa Clara, CA 95054; telephone 408-654-5820,
fax 408-654-9107.
 
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