FOCUS Enhancements Unveils New Digital Video Mixer Line with Internal Graphics Store.

CAMPBELL, Calif. -- FOCUS Enhancements Inc. (Nasdaq:FCSE), a worldwide leader in video production and conversion technology, today announced the release of two new mixer models: the MX-4 and the MX-4 DV.

"The MX-1 virtually created the affordable digital video mixer market in 1994. Our mixer line was further strengthened in 1997 with the introduction of MXPro and again in 1999 with the introduction of MXProDV, the first mixer to incorporate a FireWire/i.Link I/O," commented Michael Conway, senior vice president of Marketing. "Our mixer team continues to proactively address customer desires and has added a graphics store, Ethernet, two additional DV inputs and numerous other features to these mixers."

The FOCUS Enhancements MX-4 Digital Video Mixer offers a host of features including:

--10 bit 4:2:2 video processing with superior input comb filter circuitry

--Four times faster processor with flash-upgradeable memory

--Integral graphics store

--Ethernet for computer and network connectivity

--Four-layer video effects, including foreground graphics

--700+ transitions, including cuts, fades, wipes, zooms, edges, shapes and trailing effects

--Two channel TBC (Time Base Corrector)

--Faster cuts and transition speeds

--Input effects with preview, including brightness, contrast, saturation, hue, posterization B&W, B&W Negative, Horizontal or Vertical Flip, Mosaic, Color Negative, Color Correction, Strobe and Chroma Key

--PiPs (picture-in-picture), which can be enhanced with soft edges, colored borders and drop shadows for 3D-like impact

In addition to the above features, the MX-4 DV model includes four FireWire/i.Link (IEEE 1394) inputs and one FireWire/i.Link output to enable videographers to mix DV video and 10-bit analog video in real time with fast cuts. Another advantage of using DV is its full support for up to four channels of embedded digital audio with CD-quality audio performance. The MX-4 DV is ideal as a production mixer or video processor upstream to an NLE or encoding station.

The MX-4 and MX-4 DV are expected to be available in the fourth quarter of 2004. The suggested retail price of the MX-4 is $2,195. The suggested retail price of the MX-4 DV will be announced at a later date. The MX-4 and MX-4 DV are designed for live event productions in the education, business, multimedia and the broadcast markets.

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, Calif., FOCUS Enhancements designs, develops, and markets video solutions in two distinct markets: advanced proprietary video conversion integrated circuits (ICs) and affordable, high quality, digital-video conversion and video production equipment. Semiconductor IC products include designs for PCs, game cards, internet, set-top boxes, Internet appliances, and interactive TV applications, and they 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 about future results and other expectations 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. A number of factors in addition to those discussed herein could cause actual results to differ materially from expectations. Demand for FOCUS Enhancements' products, which impacts revenue and the gross margin percentage, is affected by business and economic conditions and changes in customer order patterns. Any projections are inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of FOCUS Enhancements. Important assumptions and other important factors, including risk factors, which could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's Form 10-K for the year ended December 31, 2003 and other filings with the SEC. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events, or otherwise.