New Firmware Upgrade Adds Support for Native 720/24p, 25p and 30p as Well as Native QuickTime Support for DVCPRO HD Recordings

CAMPBELL, CA -- (MARKET WIRE) -- September 09, 2006 -- Focus Enhancements, Inc. (NASDAQ: FCSE), a worldwide leader in video production and conversion technology, today announced the version 3.0 firmware upgrade for its popular FS-100 Portable Direct To Edit® (DTE) recorder enabling users to record native 720/24p, 25p and 30p in the MXF P2 or QuickTime file formats commonly used in Apple's Final Cut Pro. Version 3.0 is expected to be available in the middle of the fourth quarter, 2006.

Native file format support only records the required frames in a DVCPRO HD stream, eliminating the need to remove advanced pulldown or duplicate frames during import to the edit system. The new 3.0 software version also adds QuickTime support for native frame rates as well as other 720p and 1080i DVCPRO HD record modes for DTE workflow within Apple Final Cut Pro, bypassing the normal P2 import process thereby decreasing workflow.

"Focus Enhancements' unique DTE technology is continually evolving to streamline and improve professional video production workflow," said Matt McEwen, senior product manager for Focus Enhancements. "The addition of native frame rate support as well as QuickTime support to FS-100 saves a tremendous amount of time in DVCPRO HD workflow as well as offering extended record time."

Using native frame rate recording, users can more than double the record time on the FS-100 from 100 minutes to over 200 minutes. By recording only the required frames, the bit rate for DVCPRO HD recordings drops to as low as 40Mb/s. While camcorders such as the Panasonic AG-HVX200 P2 camera/recorder do not output a stream via FireWire when set to native frame modes (pN), the FS-100 processor is capable of achieving the same native support by only recording the required frames when set to regular 720/24p, 25p and 30p modes. QuickTime support also includes up to four channels of digital audio.

The FS-100 3.0 upgrade is expected to be available directly from Focus Enhancements for $39 by the middle of the fourth quarter this year.

Focus Enhancements will demonstrate a beta version of the 3.0 software during IBC Expo at the Amsterdam RAI from September 8 - 12 in stand number 9.431. IBC is the leading event for professionals involved in the creation, management and delivery of entertainment content.

For more information on Focus Enhancements and its products, please visit www.focusinfo.com.

About Focus Enhancements, Inc.

Focus Enhancements, Inc. (NASDAQ: FCSE), headquartered in Campbell, CA, is a leading designer of world-class solutions in advanced, proprietary video and wireless video technologies. The company's Semiconductor Group develops integrated circuits (ICs) for high-performance applications in the video convergence market, including IPTV set-top boxes and portable media players. Focus Enhancements is currently developing a wireless IC chip set based on the WiMedia UWB standard and designed to be compatible with Wireless USB and used in personal computer (PC), consumer electronics (CE), and mobile electronics applications. The company's System Group develops video products for the digital media markets, with customers in the broadcast, video production, digital signage and digital asset management 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 in this press release which are not historical including statements regarding management's intentions, hopes, expectations, representations, plans or predictions about the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ materially include the risk factors specified in the company's Form 10-K for the year ended December 31, 2005, Form 10-Q for the periods ended March 31, 2006 and June 30, 2006, as well as other filings with the SEC. These statements are based on information as of September 09, 2006 and the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

© 2006 Focus Enhancements, Inc. All Rights Reserved.

Focus Investors:

Kirsten Chapman Lippert/Heilshorn & Assoc. 415.433.3777 [email protected]

European Contact:

Frithjof Becker COMO Computer & Motion GmbH + 49-4307-8358 0 [email protected]

FOCUS Enhancements:

Shaun McTernan Focus Enhancements, Inc. 843.836.3627 [email protected]

Focus Public Relations:

Ramin Ekhtiar FutureWorks, Inc. 408.428.0895 ext 102 [email protected]