Press Release

FOCUS Enhancements Showcases Ultra Wideband Technology at International CES 2006

The Company Will Feature Validation Systems and Analog RF Chips With Leading TALARIA UWB Technology, Compatible by Design With the WiMedia UWB Standard

TALARIA UWB technology is ideal for computer, mobile communications, and consumer electronics manufacturers designing next generation wireless audio/video products. FOCUS Enhancements is currently taking orders for Validation Systems, which include all elements needed to test UWB radio performance in typical home and office user environments. Among the key elements of the Systems is the two-part chipset. Silicon of the first chip, the analog/rf chip, was received in September, and tape out of the digital/baseband companion chip is expected this month. The Systems will include silicon of the complete chipset and are expected to be available for shipment in March/April, 2006.

"UWB technology is rapidly emerging as a viable and innovative technology for use in commercial products," said Brett Moyer, FOCUS Enhancements' president and chief executive officer. "Our TALARIA UWB technology is engineered and designed to enable developers and manufacturers to use UWB in a wide range of physical environments. Our Validation Systems will demonstrate to developers and product managers real world delivery capabilities, which we believe outperform anything currently on the market or being demonstrated."

"The Validation System includes a TALARIA mini-PCI UWB radio module, a reference design that customers can start to use immediately to pursue UWB implementation in products and designs they already have in the works," said Tom Hamilton, executive vice president and general manager of FOCUS Enhancements' Semiconductor Group. "Our team will not only assist customers with the validation of our UWB wireless solution, but we can also help with the implementation of UWB technology to assure rapid time-to-market and an immediate competitive advantage."

About TALARIA UWB Technology

TALARIA is a total UWB wireless solution designed to provide interoperability with the WiMedia UWB Standard and the Wireless USB (Certified by the USB-IF) implementation of WiMedia UWB technology. It uses both WiMedia MB-OFDM and the company's DS-OFDM™ modulation techniques. With DS-OFDM modulation, TALARIA generates more densely packed signals that cover a wider segment of the available UWB spectrum. This means that FOCUS Enhancements' UWB radios provide a more robust link that increases transfer rates over longer distances, making TALARIA ideal for high-speed wireless and video applications throughout a home or small office. TALARIA provides an intelligent wireless platform designed to work with all standard WiMedia UWB products and provides additional performance and ultra high-speed data transfers required by most digital media files, including audio, photos, and high resolution video.

FOCUS Enhancements' UWB Validation System

FOCUS Enhancements' Validation System is easy to install and configure. Users can direct video or data using the Web-based interface from a selection of sources to the FOCUS UWB radio for wireless transmission. The Validation System contains two PCI slots, which house a mini-PCI UWB radio module and a FOCUS Enhancements Gemini MPEG decoder card. The integrated Gemini MPEG decoder card enables testers to render a compressed media stream in either standard definition (SD) or high definition (HD) video formats. Video outputs include IEEE-1394, component video, composite video, VGA and DVI. Audio outputs include 2-channel audio-out and S-PDIF.

The Web-based interface includes radio set-up, monitoring and control tools, enabling users to fully evaluate FOCUS Enhancements' UWB radio and its exclusive TALARIA UWB technology. The UWB radio can be configured and managed through the validation unit's user interface (UI), which provides the user with tools to control data input and output. Users can configure the radio to operate in standard WiMedia mode, FOCUS high-performance mode or to dynamically switch between the two. This allows users to test multiple combinations of media access controller (MAC) modes and PHY rates. The UWB Validation System provides detailed statistics including various throughput measures, error rates, signal quality and others to help monitor and evaluate UWB radio performance. It can also display additional details including net effective rate, throughput (physical rate) and packet error percentage.

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: semiconductor products targeting several video applications and affordable, high quality, digital-video conversion and video production equipment. Semiconductor IC products include video convergence chips designed for PCs, game cards, Internet, set-top boxes, Internet appliances, and interactive TV applications and Ultra Wideband wireless integrated circuits (ICs) which are based on the WiMedia UWB standard and are designed to be compatible with Wireless USB (Certified by the USB-IF) and are used in PC, CE and mobiles electronics applications. Semiconductor products 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, Forms 10-Q, 10-Q/A and 10-Q for the periods ending March 31, 2005, June 30, 2005 and September 30, 2005, as well as other filings with the SEC. These statements are based on information as of January 5, 2006 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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