FCSE Focus Enhancements (MM)

Focus Enhancements, Inc. (Nasdaq:FCSE), a worldwide leader in video production, PC-to-TV conversion and Ultra Wideband (UWB) wireless technology, announced completion a three-pronged sales tour of Asia demonstrating Ultra Wideband (UWB) streaming video during the week of October 23rd. Spear-headed by senior management, each with a UWB demonstration kit, the company visited customers in Taiwan, Korea and Japan. Customers included original equipment manufacturers and original design manufacturers who are key customers in both PC and consumer electronics� markets. Video streaming at distances exceeding 10 meters and, in several cases, through walls, was shown to a variety of engineers and product managers from several companies in all three country locations. The demonstrations were run using commercially available TALARIA� UWB evaluation hardware. Several experiments were run, including transmitting video from room-to-room through a concrete wall and passing the signal through more than a dozen observers standing in between the transceiver pairs. �Our performance was very impressive to the audiences, with several observers mentioning that this was the best UWB performance they had seen to date,� said Tom Hamilton, executive vice president and general manger of Focus Enhancements� semiconductor group. �The performance in Asia was consistent with the performance we have seen in our offices in Hillsboro, where we have been able to successfully transmit in excess of 30 meters in line-of-sight demonstrations,� Hamilton continued. �In almost all cases the packet error rates, (a measure of wireless signal integrity), for transmission were much less than 10 percent and in many cases less than one percent, even with people standing in the path of the radios,� said Valerio Filauro, product marketing manager for the semiconductor group. One product manager in Taiwan stated, �I didn�t believe UWB could go from room to room until I saw it myself,� commenting on an experiment sending HD video from a conference room into an adjacent closed room, through the concrete structure with ceramic tiles on the wall. �Many of the customers we visited were current customers with whom we have existing relationships with because of our ongoing TV encoder business,� said Mark Zadeh, vice president of sales for the semiconductor group. Zadeh went on to say, �UWB is bringing more technology options to our existing customer base and this helps us expand our relationships with customers throughout Asia.� TALARIA UWB Technology Focus Enhancements' industry leading UWB technology allows wireless high definition (HD) and standard definition (SD) video transmission at data rates from 37 Mbps to 880 Mbps with distances sufficient for whole house wireless video coverage. TALARIA is also ideal for wireless USB applications and is based on the WiMedia and Wireless USB-IF Standards specifications. The digital/baseband/MAC chip is an integral part of TALARIA UWB technology which is already proven to effectively transmit wireless video through a variety of typical in-home obstructions. TALARIA uses both WiMedia MB-OFDM and Focus Enhancements DS-OFDM modulation techniques. Designed to be interoperable with the WiMedia UWB Standard, TALARIA generates more densely packed signals that cover a wider swath of the available UWB spectrum. This means that Focus Enhancements' 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 operates 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 digital chip uses a cost effective 0.13 micron CMOS process technology to supply reliable, consumer-friendly video distribution. To learn more about TALARIA UWB technology go to http://www.focussemi.com. About Focus Enhancements, Inc. Focus Enhancements Inc. (Nasdaq: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. Such statements include statements regarding management�s plans to complete its Ultra Wideband (UWB) semiconductor chip designs, 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 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, the performance and acceptance of its UWB technology when successfully moved to silicon and the risk factors specified in the company's Form 10-K for the year ended December 31, 2005, Form 10-Q for the periods ended March 31, 2006 and June 30, 2006, as well as other filings with the SEC. These statements are based on information as of November 2, 2006 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, Inc. (Nasdaq:FCSE), a worldwide leader in video production, PC-to-TV conversion and Ultra Wideband (UWB) wireless technology, announced completion a three-pronged sales tour of Asia demonstrating Ultra Wideband (UWB) streaming video during the week of October 23rd. Spear-headed by senior management, each with a UWB demonstration kit, the company visited customers in Taiwan, Korea and Japan. Customers included original equipment manufacturers and original design manufacturers who are key customers in both PC and consumer electronics' markets. Video streaming at distances exceeding 10 meters and, in several cases, through walls, was shown to a variety of engineers and product managers from several companies in all three country locations. The demonstrations were run using commercially available TALARIA(TM) UWB evaluation hardware. Several experiments were run, including transmitting video from room-to-room through a concrete wall and passing the signal through more than a dozen observers standing in between the transceiver pairs. "Our performance was very impressive to the audiences, with several observers mentioning that this was the best UWB performance they had seen to date," said Tom Hamilton, executive vice president and general manger of Focus Enhancements' semiconductor group. "The performance in Asia was consistent with the performance we have seen in our offices in Hillsboro, where we have been able to successfully transmit in excess of 30 meters in line-of-sight demonstrations," Hamilton continued. "In almost all cases the packet error rates, (a measure of wireless signal integrity), for transmission were much less than 10 percent and in many cases less than one percent, even with people standing in the path of the radios," said Valerio Filauro, product marketing manager for the semiconductor group. One product manager in Taiwan stated, "I didn't believe UWB could go from room to room until I saw it myself," commenting on an experiment sending HD video from a conference room into an adjacent closed room, through the concrete structure with ceramic tiles on the wall. "Many of the customers we visited were current customers with whom we have existing relationships with because of our ongoing TV encoder business," said Mark Zadeh, vice president of sales for the semiconductor group. Zadeh went on to say, "UWB is bringing more technology options to our existing customer base and this helps us expand our relationships with customers throughout Asia." TALARIA UWB Technology Focus Enhancements' industry leading UWB technology allows wireless high definition (HD) and standard definition (SD) video transmission at data rates from 37 Mbps to 880 Mbps with distances sufficient for whole house wireless video coverage. TALARIA is also ideal for wireless USB applications and is based on the WiMedia and Wireless USB-IF Standards specifications. The digital/baseband/MAC chip is an integral part of TALARIA UWB technology which is already proven to effectively transmit wireless video through a variety of typical in-home obstructions. TALARIA uses both WiMedia MB-OFDM and Focus Enhancements DS-OFDM modulation techniques. Designed to be interoperable with the WiMedia UWB Standard, TALARIA generates more densely packed signals that cover a wider swath of the available UWB spectrum. This means that Focus Enhancements' 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 operates 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 digital chip uses a cost effective 0.13 micron CMOS process technology to supply reliable, consumer-friendly video distribution. To learn more about TALARIA UWB technology go to http://www.focussemi.com. About Focus Enhancements, Inc. Focus Enhancements Inc. (Nasdaq: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. Such statements include statements regarding management's plans to complete its Ultra Wideband (UWB) semiconductor chip designs, 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 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, the performance and acceptance of its UWB technology when successfully moved to silicon and the risk factors specified in the company's Form 10-K for the year ended December 31, 2005, Form 10-Q for the periods ended March 31, 2006 and June 30, 2006, as well as other filings with the SEC. These statements are based on information as of November 2, 2006 and the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.