FCSE Focus Enhancements (MM)

Focus Enhancements, Inc. (NASDAQ CAPITAL:FCSE) announced today its semiconductor group has opened offices in Japan and Korea. The Focus Enhancements Japan K. K., a Japanese corporation, and Focus Enhancements Korea Co., Ltd., a Korean corporation, offices will be headed by semiconductor group country managers Brian Willis and Harry Cho, respectively. "With our semiconductor revenue expected to increase more than 200 percent in 2006 versus 2005, and Ultra Wideband (UWB) semiconductor sales expected to start in 2007, now is the time to expand our Asian operations beyond Taiwan to the critical markets of Japan and Korea," stated Brett Moyer, president and chief executive officer. "We will be able to work directly and more effectively with our customers to help them design, manufacture, and market new products. Opening these offices and staffing them with seasoned sales and application engineering professionals solidifies our dedication to being a global leader supplying the highest quality TV encoder and UWB chips." "We have been very active with Focus Enhancements in the last year, designing our NEC Personal Media Player 'VoToL' with the Focus FS455LF PC-to-TV Converter chip," said Mr. Takao Omachi, General Manager of NEC Personal Media Products. "The opening of this Focus Enhancements office in Shinjuku shows a high level of commitment to expanding business in Japan. We see this as a significant effort to better support customers like us and comprehensively serve the Japanese market." "Focus Enhancements is committed to help Korean companies develop new and exciting consumer electronics and multimedia products," said Mr. Suncheol Shin, vice president and general manager, new business & strategy development center, Reigncom, a major MP3 player manufacturer world famous for its well known 'iRiver' brand. "With local sales and support, we can develop leading-edge products and get them to market much faster." Focus Enhancements Japan is located at No.2 Yamaguchi Building, 10F, 6-20-12 Nishi-Shinjuku, Shinjuku-Ku, Tokyo 160-0023 Japan. Focus Enhancements Korea is located at Suite 759 TRAPALACE, 10-1, Sunae-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, 463-825 Korea. Additional information is available at www.focusinfo.com. About Focus Enhancements, Inc. Focus Enhancements Inc. (NASDAQ CAPITAL: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. 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. Factors that could cause actual results to differ materially include the risk factors specified in the company's Form 10-K for the year ended December 31, 2005, Form 10-Q for the period ended March 31, 2006, as well as other filings with the SEC. These statements are based on information as of August 9, 2006 and the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.