inSilicon Corporation Reports First Quarter Financial Results

Pro forma net loss excludes certain non-cash and other charges related to the amortization of purchased intangible assets, stock-related compensation and restructuring charges. In the first fiscal quarter these charges totaled approximately $3.1 million, and included approximately $0.9 million for severance and facilities shut-down costs, as well as the write-down of previously capitalized software and intangible assets totaling approximately $1.2 million. Including these charges, net loss was $4.1 million, or ($0.27) per basic share, in the first quarter of fiscal 2002 as compared to a net loss of $0.2 million, or ($0.01) per basic share, in the first quarter of fiscal 2001.

"We are encouraged by these first quarter results," said Wayne Cantwell, President and Chief Executive Officer. "Although the economic environment remains difficult, we have been working hard to deliver revenue growth coupled with improved performance on the bottom line.

"Our efforts in the quarter to realign our spending with the current levels of demand are intended to position us for a return to pro-forma profitability in the coming quarters," added Cantwell. "Continuing customer demand for our analog and mixed signal products, combined with our focus on digital communication products should provide us with revenue growth opportunities during fiscal 2002. We intend to continue our spending control measures as we work to bring inSilicon back to revenue growth and profitability."

About inSilicon
inSilicon Corporation is a leading provider of communications semiconductor intellectual property used by semiconductor and systems companies to design complex systems-on-chip (SOC) technologies that are critical components of innovative wired and wireless products. inSilicon's technology provides customers faster time-to-market and reduced risk and development costs. The Company's broad portfolio of analog and mixed-signal products and enabling communications technologies, including the JVX[tm] and JVXtreme[tm] Accelerators, Ethernet, USB, PCI, and IEEE-1394, are used in a wide variety of markets encompassing communications, consumer, computing, and office automation. inSilicon is a subsidiary of Phoenix Technologies Ltd. (Nasdaq: PTEC).

Conference Call Webcast
The Company will hold its quarterly conference call with the investment community today, January 15, 2002, at 1:30pm Pacific time. This call will be webcast live and a replay of the call will be available for a 90-day period at http://www.insilicon.com or http://www.broadcast.com.

inSilicon and JVX are trademarks of inSilicon Corporation. All other trademarks are the property of their respective owners.

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

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside inSilicon's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see inSilicon's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K. inSilicon disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of inSilicon.

The above pro forma statements have been adjusted to eliminate the following non-cash and other charges: