FOCUS Enhancements Announces Industry First Videonics FireStore Product Now Shipping; FireStore Makes Productivity Breakthrough for Video Producers.

Business Editors/High-Tech Writers

CAMPBELL, Calif.--(BUSINESS WIRE)--Aug. 27, 2001

FOCUS Enhancements (Nasdaq:FCSE) announced today the immediate availability of Videonics FireStore(TM), the first DV (digital video) product that allows direct camera-to-hard disk recording of edit-ready DV files without the use of a computer.

"With FireStore I will be able to begin editing immediately after shooting and save the time I would have used to capture the video," commented Fred Williams, owner of New Trend Media Sports in Charleston, S.C. New Trend specializes in creating sports shows for television and for coaching reviews where time is a valuable factor. "FireStore lets me get ahead of my competition." New Trend Media Sports produces numerous sports TV programs for FOX WTAT 24, the South Carolina Stingrays and several of the local collegiate and high school teams including the Citadel and Charleston Southern University.

"The feature set, practicality and price point make FireStore a very useful addition to any production environment," stated Matthew McEwen, FOCUS Enhancements product manager. "FireStore allows users to have their video clips immediately available for playback or editing. A video producer can go from shooting to editing in a matter of seconds. Being able to skip the capture stage of editing will significantly streamline the digital production process."

Videonics FireStore converts any IEEE-1394 (FireWire, i.Link) Hard Disk Drive (or drives) into a high performance digital disk recorder/player. It allows video production professionals to record directly to disk from a DV based camcorder, VTR or mixer without the need for a computer. Two identical copies of the footage can be recorded simultaneously -- to disk and to the camcorder's tape -- providing security and confidence to the videographer. DV streams are recorded to disk as edit-ready files that can be imported and used immediately by most DV based non-linear editing systems, eliminating the time consuming process of capturing. FireStore is compatible with FireWire disk drives that have FAT 32 disk volumes, a file format supported by Windows 98SE, Windows 2000, Windows ME and Mac OS 9 operating systems.

FireStore will slave to most FireWire based DV camcorders to allow its record and record pause modes to be triggered by the press of the camcorders Record Start/Stop button. Upon each Record Start, FireStore creates a new clip on the disk drive. FireStore also features many other VTR-like functions with the versatility of a digital video disk recorder. Operational functions include play, reverse play, stop, multi-speed fast forward and rewind, single frame forward and backward, next track/previous track and still record. Utility features include delete track, format disk and check disk. FireStore will also record 2-ch (16-bit, 48kHz) or 4-ch (12-bit, 32kHz) embedded DV audio. Input and output of 25Mb/s DV sources is through a 4-pin IEEE-1394 connector while the connection between FireStore and the Hard Disk Drive(s) is with a single 6-pin 1394 cable. To edit video clips, users can either cable their FireWire disk drive directly to their computer (via a standard OHCI complaint IEEE-1394 card) or alternatively use the convenient bypass mode, which allows the hard disk drive to mount to the computer through FireStore.

Videonics FireStore is available now through the FOCUS Enhancements worldwide reseller and distributor network for a US SRP of $995.00.

About FOCUS Enhancements, Inc.

FOCUS Enhancements, Inc. (Nasdaq:FCSE) and Videonics, Inc. (previously Nasdaq:VDNX), both formerly independent public companies, completed a merger on Jan. 16, 2001. The merged company, operating under the FOCUS Enhancements name, is a leading designer of world-class solutions in advanced, proprietary video scan conversion ASICs, and affordable, high quality, digital-video conversion and video production equipment. Semiconductor products include the FS400, and FS450 series ASICs for scaling, scan conversion, Internet TV and interactive TV applications. Commercial products for video presentation include desktop PC-to-TV scan converters, scalers, and line quadruplers. Video production products include application controllers, edit controllers, mixers, and character and effects generators. The company's products and technologies are sold globally through Original Equipment Manufacturers (OEMs) and resellers to the broadcast, education, cable, business, industrial, presentation, internet, gaming, home video production and home theater markets. FOCUS Enhancements stock is traded on the NASDAQ SmallCap Market under the symbol FCSE. 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.

Statements about future results made in the above referenced (press release/presentation/conference call) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. The Company cautions that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Such projections are based upon many estimates and are inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of FOCUS. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's Form 10-KSB for the year ended December 31, 2000 and other filings with the SEC by both FOCUS and Videonics.