Focus Enhancements Supplies TV-Out Chips for Microsoft's Zune Portable Media Players

Business Wire, Nov 16, 2006

CAMPBELL, Calif. -- Focus Enhancements, Inc. (NASDAQ:FCSE), a worldwide leader in video production, PC-to-TV conversion and Ultra Wideband (UWB) wireless technology, today confirmed the Microsoft Zune[TM] portable media player (PMP) features the company's FS456 TV-out encoder. This discovery was revealed by Wall Street analysts as a result of a tear-down analysis done on a commercially purchased Zune PMP.

The Zune is powered by Freescale[TM] multimedia technology and uses the FS456 chip to display video from the PMP to a TV through standard video connectors.

"Zune is a strong and serious entry into the PMP market and will compete with iPod. More importantly, it will drive the overall market opportunity for portable media in general," said Brett Moyer, president and CEO of Focus Enhancements. Moyer continued, "PMPs are entertainment-driven consumer products which require high quality video to enhance their multimedia experience. The FS456 was integrated into Zune because the industry-leading video quality and small size make it ideal for this application."

"Our path to success supplying high-quality TV-out to the emerging PMP market is based on our strong relationships with world class development teams such as Freescale and Toshiba," said Tom Hamilton, executive VP and general manager of Focus Enhancements' semiconductor group.

In addition to the Zune, the FS456 also powers the Toshiba Gigabeat PMP.

About Focus Enhancements, Inc.

Focus Enhancements Inc. (NASDAQ CM: FCSE), headquartered in Campbell, CA, is a leading designer of world-class solutions in advanced, proprietary video and wireless video technologies. The company's Semiconductor Group develops integrated circuits (ICs) for high-performance applications in the video convergence market, including IPTV set-top boxes and portable media players. Focus Enhancements is currently developing a wireless IC chip set based on the WiMedia UWB standard and designed to be compatible with Wireless USB, and used in personal computer (PC), consumer electronics (CE), and mobile electronics applications. The company's Systems Group develops video products for the digital media markets, with customers in the broadcast, video production, digital signage and digital asset management 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.

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