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SAN JOSE, CA – December 11, 2009 – DeviceVM, a privately held software company offering Splashtop™, an award-winning instant-on software platform, today announced that it has filed a cross-complaint against Phoenix Technologies Ltd. (Nasdaq: PTEC) in the United States District Court for the Northern District of California. The suit alleges that Phoenix has engaged in a pattern of unfair competition and false advertising that has misled the industry and investors, and violated the Lanham Act. DeviceVM seeks an injunction against Phoenix, as well as compensatory and punitive damages.

The cross-complaint alleges that, facing mounting financial losses, unable to attract customers, and finding itself lagging behind its competition in the market, Phoenix embarked on a campaign to mislead the media, computer manufacturers, and investors regarding the poor adoption of its own instant-on product in the PC industry. Phoenix created the false impression that computer manufacturers such as Acer, ASUS, and Lenovo had agreed to ship its HyperSpace™ product, when, in reality, none of these computer manufacturers has shipped a product with HyperSpace™ installed to date.  In stark contrast, at the time of this false advertising campaign by Phoenix, DeviceVM’s Splashtop™ product had already been shipping on Asus, Hewlett Packard, Lenovo and LG PCs, and had secured shipment commitments with Acer and Sony.

In addition, the cross-complaint alleges that Phoenix made false assertions regarding the performance and features of its products at investor presentations and to the public in an attempt to damage the considerable reputation, brand, and customer momentum that Splashtop™ already built in the marketplace.

“Unable to gain inroads on DeviceVM in the marketplace, Phoenix embarked on a lawsuit in a desperate attempt to stake a claim to DeviceVM’s strong patent portfolio and to disparage DeviceVM to its customers. Phoenix’s claims are premised on a baseless assertion that a former employee misappropriated trade secrets from Phoenix for use at DeviceVM. It is unfortunate that Phoenix chose to take advantage of a former employee five years after the employee’s departure to try to accomplish in court what they could not do in the marketplace,” said Mark Lee, co-founder and CEO of DeviceVM.  “In fact, the fundamental technology underlying Splashtop™ had been invented before the employee joined DeviceVM.”
 
About Splashtop
Splashtop is the award-winning instant-on platform that improves the personal computing experience. Splashtop enables users to search and surf the Web, access e-mail, and chat with friends seconds after turning on their PC. Splashtop for Business is the first instant-on solution designed for business – enabling companies to increase employee productivity while lowering the total cost of PC ownership. Splashtop is currently available on more than 15 million PCs across 200 models of netbooks, notebooks, motherboards, and desktops from leading manufacturers including Acer, ASUS, HP, Lenovo, LG and Sony. Since its debut in October 2007, Splashtop has received numerous awards, including the prestigious “Most Innovative Product” award from PC World, and the “Best of What’s New” award from Popular Science. For more information, visit http://www.splashtop.com

About DeviceVM
DeviceVM, Inc. is a privately held software company, selected by Dow Jones as one of the top 50 companies to watch. With its instant-on Splashtop product, DeviceVM is improving the every-day experience of computer users. Founded in 2006, DeviceVM is headquartered in Silicon Valley with offices in Beijing, Hangzhou, Shanghai, and Taipei.

Useful Links:
More about Splashtop: http://www.splashtop.com
Splashtop-enabled products: http://splashtop.com/os/showcase

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Press contact:
Catherine Burke
Sparkpr for DeviceVM
cburke@sparkpr.com
415.321.1882