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FOCUS Enhancements Receives Silicon for Industry's First 880 Megabit per Second Ultra Wideband Chip

30 September 2005

FOCUS Enhancements, Inc. (NASDAQ: FCSE), a
worldwide leader in video production and conversion technology, has
received first silicon for its industry-leading, high-performance 880
megabit per second (Mbps) wireless Ultra Wideband (UWB) chip. The FOCUS
Enhancements' analog/rf chip is the first chip of a two-part chipset
solution in FOCUS Enhancements' Talaria™ UWB technology and signifies
the company's leadership in delivering UWB solutions that will enable
wireless video distribution and high speed data transfer for home and
office applications. The company expects tape out of the second chip to
occur in October 2005 and receipt of silicon of this chip in December 2005.
Evaluation kits are anticipated to be shipped around the end of 2005.

"Receiving initial silicon is an important milestone in our strategy to
enable leading CE manufacturers, our current customer base, to rapidly
deploy wireless video products into the home," said Brett Moyer, FOCUS
Enhancements' president and chief executive officer. "We have consistently
demonstrated the best UWB performance in the industry and are maintaining a
unique leadership position in the race to deliver UWB. We are now
finalizing the digital/baseband companion chip and quickly progressing
toward the final chip-set that will ultimately provide a new generation of
wireless-enabled, video-based consumer electronics."

The high-performance radio frequency analog IC portion of the chipset was
manufactured by Jazz Semiconductor. The flip-chip ball grid array package
for the analog chip was produced by Fujitsu. Taiwan Semiconductor
Manufacturing Corporation, Ltd., the world's largest dedicated
semiconductor foundry, will produce the digital baseband/MAC application
specific integrated circuit (ASIC).

"First silicon of our analog UWB chip stands as the culmination of a
tremendous engineering effort," said Tom Hamilton, executive vice president
and general manager of FOCUS Enhancements Semiconductor Group. "Receiving
this chip on time for validation testing is a major step toward UWB
commercialization. We look forward to receiving our digital chip and
shipping evaluation kits to our customers."

Talaria UWB Technology

FOCUS Enhancements' industry leading technology allows wireless high
definition (HD) and standard definition (SD) video transmission at net data
rates up to 880 Mbps at distances of up to 8 meters and 37 Mbps at 40
meters. The company's innovative technology far exceeds existing published
competitive capabilities. The analog chip is an integral part of FOCUS
Enhancements' Talaria UWB technology which has been proven to effectively
transmit wireless video through a variety of typical in-home obstructions.
The company is now demonstrating multiple HD streams through various types
of walls and line-of-sight SD video streams up to 40 meters in its
Hillsboro, OR laboratory.

Talaria UWB technology uses both WiMedia MB-OFDM for UWB Standard
interoperability and FOCUS Enhancements DS-OFDM™ modulation techniques.
With DS-OFDM modulation, Talaria UWB technology generates more densely
packed signals that cover a wider swath of the available UWB spectrum. This
means that FOCUS UWB radios provide a more robust link that transfers data
at faster rates over longer distances, making them ideal for high-speed
wireless and video applications throughout a home or small office.

The Talaria UWB technology analog chip will operate between 3.2 gigahertz
(GHz) and 7.2 GHz. In addition to 880 Mbps, other selectable rate settings
include 110 Mbps, 440 Mbps and 660 Mbps. The analog chip uses 0.18 micron
silicon/germanium (SiGe) process technology to achieve the higher
signal-to-noise ratios required to supply reliable, consumer-friendly video
distribution.

About FOCUS Enhancements, Inc.

FOCUS Enhancements, Inc. (NASDAQ: FCSE) is a leading designer of
world-class solutions in advanced, proprietary video technology.
Headquartered in Campbell, CA, FOCUS Enhancements designs, develops, and
markets video solutions in two distinct markets: advanced proprietary video
conversion integrated circuits (ICs) and affordable, high-quality,
digital-video conversion and video production equipment. Semiconductor IC
products include designs for PCs, game cards, Internet, set-top boxes,
Internet appliances, and interactive TV applications, and they are sold
directly to original equipment manufacturers (OEMs). FOCUS Enhancements'
complete line of video presentation and video production devices are sold
globally through resellers and distributors to the broadcast, education,
cable, business, industrial, presentation, Internet, gaming, home video
production and home theater markets. More information on FOCUS Enhancements
may be obtained from the company's SEC filings, or by visiting the FOCUS
Enhancements home page at http://www.FOCUSinfo.com.

Safe Harbor Statement

Statements in this press release which are not historical including
statements regarding management's intentions, hopes, expectations,
representations, plans or predictions about the future are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Such statements include statements regarding management's
expectations of demand for FOCUS Enhancements' products, which impacts
revenue and the gross margin percentage, management's plans to complete its
Ultra Wideband (UWB) semiconductor chip designs, move UWB technology to
silicon, and the performance of its UWB technology in silicon. Because
these forward-looking statements involve risks and uncertainties, there are
important factors that could cause our actual results to differ materially
from those in the forward-looking statements. Factors that could cause
actual results to differ materially include customers' acceptance of
recently introduced products, changes in customer order patterns,
unforeseen increased costs in research and development, the company's
ability to maintain adequate funding to develop and implement UWB
technology, the ability of the company to migrate its UWB technology to
silicon in a timely manner, if at all, the performance and acceptance of
its UWB technology if and when successfully moved to silicon, and the risk
factors specified in the company's Form 10-K/A for the year ended December
31, 2004, Form 10-Q/A for the six months ended June 30, 2005 and other
filings with the SEC. These statements are based on information as of
September 30, 2005 and the company assumes no obligation to update any
forward-looking statements, whether as a result of new information, future
events, or otherwise.

FOCUS Enhancements:
Mike Kelly
Focus Enhancements, Inc.
503-615-7716
Email Contact
FOCUS Investors:
David Barnard
Lippert/Heilshorn & Assoc.
415.433.3777
Email Contact
FOCUS Press:
Joe Kilmer
FutureWorks, Inc.
408.428.0895 x113
Email Contact
SOURCE: FOCUS Enhancements