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

Significant Milestone in Drive to Enable Consumer Electronics Manufacturers to Wirelessly Transmit Standard and High Definition Video/Audio Throughout the Home

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(TM) 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(TM) 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.

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