SOURCE: Focus Enhancements

September 27, 2005 08:17 ET

TISNet/Tatung Using FOCUS Enhancements' FS-454 Chip to Power TV-Out for New Multimedia-On-Demand Set-Top Boxes

New Appliances Deliver Rich Media From Cable and Net Transforming the Living Room Into a Fully Interactive Digital Entertainment Center

CAMPBELL, CA -- (MARKET WIRE) -- September 27, 2005 -- FOCUS Enhancements, Inc. (NASDAQ: FCSE), today announced that TISNet, a subsidiary of Tatung Company, are in production with three set-top boxes, the PVR1000, the STB4000 and the STB5000 -- all featuring the FS-454 video convergence processor. FOCUS Enhancements' FS-454 chip provides both standard definition (SD) and high definition (HD) television in multiple international formats. TISNet is currently responsible for Tatung Company's worldwide set-top box (STB), and personal video recorder (PVR) digital home product sales, software development and technical support.

"Today's digital set-top boxes have to supply a perfect picture to the TV viewer as their expectations have increased with the advent of HD programming," said Luke Dang, President of TISNet. "FOCUS Enhancements allows us to provide excellent SDTV and HDTV quality at a low cost, adding value for our customers."

"Tatung brings tremendous market reach, high quality and high volume manufacturing to the IPTV (Internet Protocol television) industry," said Tom Hamilton, executive vice president and general manager for FOCUS Enhancements' semiconductor group. "We are excited to be working together with them on advanced set-top box solutions that are helping to redefine TV-based entertainment. The FS-454 series enables this new generation of STBs with high quality graphics, enriching the overall PC/TV experience."

Tatung introduced and announced availability of its full line of digital home products at the International Funkausstellung Association (IFA 2005), the number one worldwide consumer electronic exhibition for order volume, during the week of September 2. Included in these products were Tatung's Home Media Server, Entertainment Genie, and its IP-Based Set-Top Boxes.

The Entertainment Genie PVR1000 is designed to provide a full range of entertainment and interactive services to end users via a high-speed network. The Entertainment Genie provides an ideal home gateway capable of delivering Movie on demand (MOD) and Karaoke on demand (KOD). It features an integrated smart card reader enabling users to safely take advantage of home shopping, home banking and e-commerce. The PVR1000 also provides pausing live TV and all of the popular features of a video recorder, including a DVD burner. The STB4000 and STB5000 series provide dual broadband input through either cable or telecom delivery via DSL, offering a full range of services that are associated with interactive digital television. Both of these STB models fully support Microsoft TV IPTV Edition middleware and were announced by Microsoft at IBC 2005 in Amsterdam.

The STB4000 and STB5000 fall under the category of Internet Protocol Set-top boxes or IP/STB's. In-Stat/MDR has projected worldwide revenues in the IP/DSL STB market to approach $700 million by 2008, with the majority of the growth occurring in Europe and Asia. The Multimedia Research Group projects global IP-TV subscribers to grow to 25.3 million by 2008 at a compound annual growth rate of 79 percent.

The FS-453/FS-454 video processors provide conversion of digital PC graphics to virtually all standard definition television (SDTV) and high definition television (HDTV) formats. These chips accept resolutions ranging from 640x480 to 1280x1024 (SXGA) and can output virtually all NTSC, PAL or HDTV formats, on any size TV. The FS-453/FS-454 video processors provide glueless compatibility with most graphics controller chips (GCCs) and will deliver multiple display modes to PC monitors, SD and HD TV screens. These ICs consume less power and generate less heat than similar-purposed chips, plus they provide aggressive power control modes for use in notebook PCs and consumer electronics appliances. The FS-454 provides the globally implemented Macrovision 7.1 DVD anti-copy protection technology in the encoder for all TV outputs, including protection for 480p, progressive component output. These features provide stunning visual quality for games and text rendering, offering the highest quality text presentation available, regardless of the language rendered.

About TISNet Technology Inc.

TISNet is a subsidiary of Tatung Company, currently responsible for Tatung Company's worldwide DSTB, NPVR, digital home product sales, and software development and technical support. Established in 1918, Tatung Company currently owns 43 main subsidiary companies and reached $6.5 billion USD in sales in 2004 (including invested companies). Its main products include computers, consumer electronics, home appliances, telecommunication products, and heavy industrial products.

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, CA, 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

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. Such statements include statements regarding management's expectations of demand for FOCUS Enhancements' products, which impacts revenue and the gross margin percentage. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include customers' acceptance of recently introduced products, changes in customer order patterns, and the risk factors specified in the company's Form 10-K/A for the year ended December 31, 2004, Form 10-Q/A for the six months ended June 30, 2005 and other filings with the SEC. These statements are based on information as of September 27, 2005 and the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

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