FCSE Focus Enhancements (MM)

Focus Enhancements, Inc. (NASDAQ:FCSE), a worldwide leader in video production, PC-to-TV conversion and Ultra Wideband (UWB) wireless, announced it filed its 10-K for the fiscal year-ended December 31, 2006 today, in which Burr, Pilger & Mayer LLP, the company�s independent registered public accounting firm, included an explanatory paragraph in its 2006 audit report on the company�s financial statements relating to the uncertainty of the company's ability to continue as a going concern. Burr, Pilger & Mayer LLP included a similar explanatory paragraph in its 2005 report. At December 31, 2006, Focus Enhancements reported cash equivalents plus available credit facilities of approximately $6.5 million. As previously announced, on February 21, 2007, Focus Enhancements received gross proceeds of $6.3 million in an offering of its registered common stock. 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.