Focus Enhancements Presenting at Today's Roth Capital Partners 18th Annual Growth Stock Conference

21 February 2006

Focus Enhancements, Inc. (NASDAQ: FCSE) todayannounced additional fourth quarter and full-year 2005 preliminary resultsand expanded on its financial outlook for the full-year 2006.

On January 30, 2006, the company announced it expects fourth quarter 2005revenue to be approximately $6.0 million and expects a loss per share ofapproximately $0.05; thereby expectingfull-year 2005 revenue of $24.5 million and a net loss of $0.25 per share.The company also expects gross margins for the year 2005 to approximate 36percent.

"In 2005, we laid the foundation for 30 percent-plus revenue growth in2006, with the expectation that our 2006 revenue would increase to over $32million," stated Brett Moyer, president and chief executive officer ofFocus Enhancements. "Our Semiconductor Business is poised to benefit fromthe growth opportunities in the portable media player (PMP) market withreference designs with AMD and Freescale as well as the internet protocoltelevision (IPTV) markets with reference designs with AMD and Intel. In theSystems Business, we continue to add to our list of our industry leadingcustomers such as Canon, JVC, and Panasonic. Our recently announced $10million in convertible debt funding positions us well as we near thecompletion of our Ultra Wideband (UWB) development effort. Currently,tape-out of the digital chip is expected in the first quarter 2006 andfirst silicon of the digital chip and the sampling of Evaluation Kits areexpected in the second quarter 2006. With revenue from other products inthe Semiconductor Business growing rapidly, we believe its revenuecontribution will increase from an expected 15 percent in 2005 toapproximately 20 percent in 2006."

These expected results are preliminary and unaudited. There can be noassurance that the company's final results for the fourth quarter andfull-year 2005 will be within the ranges specified above. Final resultsfor the fourth quarter and year ended December 31, 2005 are expected to bereported in early March, at which time management will conduct a conferencecall. The date and time of the conference call will be announced.

Focus Enhancements will present at the Roth Capital Partners 18th AnnualGrowth Stock Conference today, February 21, 2006, at 11:30 a.m. PT.Presenting from management will be Brett Moyer, president and chiefexecutive officer. The presentation will be webcast live and archived atthe company's web site, www.focusinfo.com.

About Focus Enhancements, Inc.

Focus Enhancements Inc. (NASDAQ: FCSE), headquartered in Campbell, CA, is aleading designer of world-class solutions in advanced, proprietary videoand wireless video technologies. The company's Semiconductor Group developsintegrated circuits (ICs) for high-performance applications in the videoconvergence market, including IPTV set-top boxes and portable mediaplayers. Focus Enhancements is currently developing a wireless IC chip setbased on the WiMedia UWB standard and designed to be compatible withWireless USB and used in personal computer (PC), consumer electronics (CE),and mobile electronics applications. The company's System Group developsvideo products for the digital media markets, with customers in thebroadcast, video production, digital signage and digital asset managementmarkets. More information on Focus Enhancements may be obtained from thecompany's SEC filings, or by visiting the Focus Enhancements home page athttp://www.Focusinfo.com.

Safe Harbor Statement

Statements in this press release which are not historical includingstatements regarding management's intentions, hopes, expectations,representations, plans or predictions about the future are forward-lookingstatements within the meaning of the Private Securities Litigation ReformAct of 1995. Such statements include statements regarding management'sexpectations of funding requirements in 2006, demand for FocusEnhancements' products, which impacts revenue and the gross marginpercentage, management's plans to complete its Ultra Wideband (UWB)semiconductor chip designs, move UWB technology to silicon, and theperformance of its UWB technology in silicon. Because these forward-lookingstatements involve risks and uncertainties, there are important factorsthat could cause our actual results to differ materially from those in theforward-looking statements. Factors that could cause actual results todiffer materially include customers' acceptance of recently introducedproducts, changes in customer order patterns, unforeseen increased costsand delays in research and development, the company's ability to maintainadequate funding to develop and implement UWB technology, the ability ofthe company to migrate its UWB technology to silicon in a timely manner, ifat all, the performance and acceptance of its UWB technology if and whensuccessfully moved to silicon, and the risk factors specified in thecompany's Form10-K/A for the year ended December 31, 2004, Forms10-Q, 10-Q/A and10-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 oninformation as of February 21, 2006 and the company assumes no obligationto update any forward-looking statements, whether as a result of newinformation, future events, or otherwise.

Focus Enhancements Investors:Kirsten Chapman / David Barnard, CFALippert/Heilshorn & Assoc.(415) 433-3777Email Contact

SOURCE: Focus Enhancements

Source: marketwire