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, today confirmed the Microsoft Zune� 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� 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. 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. 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 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, June 30, 2006 and September 30, 2006, as well as other filings with the SEC. These statements are based on information as of November 16, 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, 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. 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. 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 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, June 30, 2006 and September 30, 2006, as well as other filings with the SEC. These statements are based on information as of November 16, 2006 and the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.