Intel and FOCUS Enhancements Sign Chip Design and License Agreements.

WILMINGTON, Mass.--(BUSINESS WIRE)--Dec. 3, 1999--

FOCUS Enhancements, Inc. (NASDAQ:FCSE) announced today that Intel Corporation (NASDAQ:INTC) has agreed to license the Company's proprietary FS450 i-Net TV video conversion ASIC for use in future Intel product designs. The FS450 chip has been selected by Intel to work with the Intel 810 graphics chip set and Intel processors to provide high quality TV compatibility for low-cost applications such as personal computers, Internet set-top boxes, web terminals, and information appliances that need to use televisions as displays.

The custom designed FS450 i-Net TV chip will bring a number of innovative features to Intel's product designs. The i-Net TV chip uses patented variable scaling to exactly fit PC or website images to any TV screen including independent horizontal and vertical scaling to support both 16:9 and 4:3 TVs. The i-Net TV chip includes built-in interfaces that allow standard TV broadcasts or a DVD Macrovision movie to be inexpensively, digitally switched through the chip for very high video quality. Unlike previous TV encoders, the i-Net TV chip can support any incoming computer resolution up to XGA (1024x768). In addition, the i-Net TV also incorporates the 2D flicker filter contained in previously announced FS400 video conversion chips which enhances text readability while eliminating flicker from the image. The i-Net TV chip provides underscaling, compression, sharpness, and video quality at levels exceeding all other competitive products.

"As Intel continues to drive new standards in the industry, we believe that the FS450 technology will play an important role in bringing superior video quality to future Intel products, making digital computer images look outstanding on any television," said Thomas Massie, President and CEO of FOCUS. "Any Internet appliance utilizing an i-Net TV chip rivals monitor quality allowing a significant cost reduction and market expansion for such applications."

FOCUS Enhancements, Inc. is an industry leader in the development and marketing of advanced, proprietary video conversion ASICs for the rapidly converging, multi-billion dollar Internet, computer, and television industries. The Company's technology, which is sold globally through Original Equipment Manufacturers (OEMs) and resellers, merges computer-generated graphics and television displays for Internet viewing, presentations, training, education, video teleconferencing, and home gaming markets.

FOCUS Enhancements, [phone], 600 Research Dr., Wilmington, Mass. 01887, www.focusinfo.com

Investors: Please contact Steve Sheldon, FOCUS Enhancements: [phone], e-mail: [e-mail].

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this release which are not historical facts are forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company; new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. Readers are cautioned not to put undue reliance on any forward-looking statements contained herein, which speak only as of the date hereof. The Company undertakes no obligation to release publicly any revisions to forward- looking statements that may be made to reflect events after the date hereof or to reflect the occurrence of unanticipated events. In addition, the forward-looking statements contained herein are subject to risks and uncertainties, including fluctuations in operating results, the timely development and acceptance of new products, product availability from suppliers, the impact of competitive products and pricing, changing TV standards and other risks set forth under the caption "Certain Factors That May Affect Future Results" in Focus' Annual Report on Form 10-K for the year ended December 31,1998, in its quarterly reports on Form 10-Q for the quarters ended March 31,1999 and June 30,1999, and other filings with the SEC.