MSU Devices Selects Focus FS450 Video Processor for Next Generation Internet Access Device; MSU V5 Brings State-Of-The-Art Internet Viewing Options To Consumers.

Business/Technology Editors

COMDEX Fall 2001

CAMPBELL, Calif.--(BUSINESS WIRE)--Nov. 8, 2001

FOCUS Enhancements (NASDAQ: FCSE) today announced that MSU Devices, Inc. (NASDAQ: MUCP.OB) has selected the FOCUS FS450, TV Interface Video Processor, in its next generation Internet Access Device, the MSU Devices V5. The product is expected to be available in the fourth quarter and will be on display at FOCUS' Comdex Tradeshow booth #L1829 and at the MSU booth #L1709-97AP, located in the Comdex Internet Appliance Pavilion, November 12-16, 2001 in Las Vegas, Nevada.

FOCUS' FS450 provides the MSU Devices V5 with superior image quality allowing consumers to experience PC-to-TV convergence with versatility, ease-of-use and enhanced viewing. The PC-TV convergence market continues to expand as more consumers require devices such as set-top boxes that can serve as an Internet and television access device, Internet appliance or as a thin client. The MSU Devices V5 combined with the FS450 is able to provide consumers with all these versatile capabilities. MSU Devices recently announced a marketing agreement with EarthLink to include EarthLink's Internet access services on all shipments of its V5 product in the United States and Canada.

"MSU Devices V5 enables the convergence of Web and TV, allowing easy access to the Internet from any TV. By combining flexible viewing options, including TVs, and absolute ease-of-use, we can ensure a friendly, PC-like experience for our customers," said Ray Dittrich, VP Sales and Market Development of MSU Devices. "FOCUS' unsurpassed image quality, and its TV-designed FS450 are essential ingredients to offering a low-cost Internet appliance that can deliver a dynamic and interactive Web experience on any TV."

"The technology in the FS450 was specifically designed to meet the difficult challenges in displaying computer text on a TV screen," said Thomas Hamilton, FOCUS Enhancements Executive VP and General Manager of the Semiconductor Division. "MSU Devices V5 can vividly display the World Wide Web on any TV. It also runs a robust set of applications on the Microsoft Windows CE operating system, and is highly programmable. These demanding tasks require the patented approach we take to solving the convergence issues that will help expand the market for PC-to-TV applications."

As market demand increases for broadband multimedia applications, the FOCUS FS450 is ready to meet the demand and challenges in providing the best quality viewing of multimedia content on either a television or PC. High quality PC-to-TV convergence will continue to be a major factor in offering consumers a better Web viewing and multimedia experience. Whether consumers want to view multimedia content, spreadsheets, PDF files or Word documents, the FOCUS FS450 provides products such as the MSU Devices V5 the ability to access and view such content with a clear, crisp and clean image on either their PC or television.

About the FS450

The FOCUS Enhancements FS450 family of ASICs is composed of the highest quality NTSC/PAL digital video processors on the market. The FS450 features advanced video processing technology, allowing a seamless conversion from progressive to interlaced video. The FS450 accepts digital input resolutions up to 1024x768 and converts them into NTSC or PAL standards compliant with SMPTE-170M and CCIR-656. Unlike other PC-to-TV video conversion chips, the FS450 supports true broadcast quality video. It has a flexible input/output structure allowing it to be compatible with many non-traditional applications. The FS450 converts digital progressive RGB inputs to the CCIR 656 video format. The FS450 has a set of CCIR 656 input/output ports to allow an external interface to a CCIR 656 video MUX (for video overlay). The FS450 incorporates a 2-Dimensional Flicker Filter that significantly enhances readability for small text and fine detailed fonts such as Kanji, Arabic and Hindi. A programmable down scaler precisely fits the input image to the output display format. The FS450 supports genlocking for studio broadcast sync, studio-grade timing and encoding, S-video, CVBS, and component RGB or YUV outputs. It supports a variety of output signal formats including all variants of interlaced NTSC and PAL, as well as CCIR 656 video. Users have full control over video quality with programmable brightness, contrast, saturation, flicker filtering (w/ sharpness control), and composite Y-notch and C bandpass filtering to prevent image artifacts associated with composite video on a television. Required external components are minimal: a single 27 MHz oscillator or crystal and passive elements. Additional information about the FS450 can be found on the FOCUS website at: http://www.focusinfo.com/products/b_asics.htm

About MSU Devices Inc.

MSU Devices Inc. designs, manufactures, markets and sells affordable and intuitive Internet access devices that enable end-users to communicate simply and easily using e-mail and by browsing the World Wide Web via the Internet. MSU Devices launched in the fourth calendar quarter of 2001, its new Internet access device, the MSU Devices V5. MSU Devices has designed and sold Internet access devices distributed in six countries.

The MSU Devices V5 can output WWW data and e-mail to a TV, computer monitor and flat panel LCD. With Java virtual machine support for displaying Java applets found on WWW sites, the MSU Devices V5 can also be programmed using Java programming tools. The MSU Devices V5 is powered by National Semiconductor's Geode GX1 processor and the Windows CE operating system. The MSU Devices V5 was designed to feature a full range of software and connectivity options and comes fully featured to be used as a set-top box, an Internet appliance and network computer (thin client).

About FOCUS Enhancements, Inc.

FOCUS Enhancements, Inc. (NASDAQ: FCSE) and Videonics, Inc. (previously NASDAQ: VDNX), both formerly independent public companies, completed a merger on January 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, FS450 and FS460 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.