SOURCE: Focus Enhancements

August 04, 2005 08:32 ET

FOCUS Enhancements Partners With Premier Distributor EDOM Technology, Preparing for UWB Launch and to Expand Video Convergence Processors in Growing Asian Market

Alliance Significantly Strengthens Customer Focus, and Design-win Capabilities in Key Electronics Manufacturing Region

CAMPBELL, CA and TAIPEI, TAIWAN -- (MARKET WIRE) -- August 4, 2005 -- FOCUS Enhancements, Inc. (NASDAQ: FCSE) has signed a new distribution agreement with EDOM Technology to market, sell, and support its complete line of video convergence and Ultra Wideband (UWB) semiconductor products in Taiwan, China and Singapore.

EDOM will distribute new Ultra Wideband (UWB) chipsets, modules, and evaluation products, targeting high quality-of-service (QOS) video distribution in CE, PC, and cell phone markets. FOCUS Enhancements' UWB technology supports a fully compliant and interoperable WiMedia Standard UWB radio, plus an extended mode that will produce much higher data rates which are designed for wireless video distribution and fast data transfers. The company's FS-1100 (analog) & FS-1200 (digital/baseband) UWB chipsets will operate between 3.2 gigahertz (GHz) and 7.2 GHz and is expected to provide transmission rates up to 880 Mbps at ranges up to 8 meters and 37 Mbps at a range of 40 meters. Both specifications exceed existing published competitive capabilities. FOCUS Enhancements' extended-mode solution utilizes a Direct Sequence-OFDM modulation scheme (DS-OFDM™) to achieve industry-leading data rates and ranges. Other selectable rate settings include: 110 Mbps at 30 meters and 440 Mbps at 14 meters.

"FOCUS Enhancements is a leading supplier of TV-out chip solutions and an innovator in the development of UWB chipsets. EDOM is honored to partner with FOCUS Enhancements and we look forward to enabling the next generation of SD and HD video products and consumer electronics as well as some of the industry's first wireless UWB solutions," said Wayne Tseng, EDOM Technology's CEO and Chairman.

Additionally, EDOM will distribute video convergence processors targeting PC, set-top box and consumer electronics markets and are designed to meet the demanding needs of markets requiring high quality conversion of video for display on both Standard Definition (SD) and High Definition (HD) television. Among the video convergence products EDOM will represent are:

--  FS-453 HDTV Family tailored for CE, gaming and mobile/hand-held
    applications

--  FS-460 Video Blending Family for set-top box applications where
    multiple video formats are destined to occupy the same video display

--  FS-400 Scan Converter Family for perfect conversion of analog computer
    graphics to analog TV video
    
"Digitalization is an inevitable trend in the consumer electronics market, and the conversion between digital and analog images has become a driving technology. FOCUS Enhancements' unique TV-out chips combined with our extensive channel will enable the creation and expansion of new convergence solutions within the consumer electronics market," said Jack Lin, vice president of marketing at EDOM Technology. "This strategic alliance will drive EDOM's platform solutions for notebook computers, PCs, PMP, IP-STB, DVD players, and gaming consoles."

"Taiwan represents one of the fastest growing and most dynamic markets for video-centric consumer electronics in the world," said Mark Zadeh, vice president of worldwide sales for FOCUS Enhancements' semiconductor group. "EDOM is a premier distributor and will enable us to offer an extremely high level of technical, marketing, and sales support to companies throughout Taiwan, China and Singapore. EDOM's extensive experience, reach, technical support, and distribution services complement our capabilities, and will help us meet the increasing demand for innovative semiconductor solutions throughout the region."

About EDOM Technology

Founded in July 1996, EDOM Technology is a professional IC agent and distributor based in Taiwan, with subsidiaries in Beijing, Shanghai, Xiamen, Shenzhen, Hong Kong and Singapore. EDOM is a distributor for more than thirty fabless IC design companies who specialize in IC designs with advanced technologies such as the following: AMD, AuthenTec, BroadLight, EPO, F3, FOCUS Enhancements, Global Locate, Greenfield, Helicomm, IC Media, IDT, Ikanos, InterVideo, Marvell, Motorola S/W Modem, NeoMagic, NuCore, NVIDIA, OKI, Opcom, PMC, Ritek, Spansion, Silicon Labs., Sunext, Sunplus, Trident, Wavesat, WIS, and Zarlink. Applications of our distributed products include multimedia, portable, wire and wireless communications, opto-electronics and consumer electronics, involving both digital and analog fields. For more information, visit www.edom.com.tw, send email to marcom@edom.com.tw, or call 886-2-2657-8811.

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 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. Such statements include statements regarding management's expectations of demand for FOCUS Enhancements' products, which impacts revenue and the gross margin percentage, management's plans to complete its Ultra Wideband (UWB) semiconductor chip designs, move UWB technology to silicon, and the performance of its UWB technology in silicon. 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, unforeseen increased costs in research and development, the company's ability to maintain adequate funding to develop and implement UWB technology, the ability of the company to migrate its UWB technology to silicon in a timely manner, if at all, the performance and acceptance of its UWB technology if and when successfully moved to silicon, and the risk factors specified in the company's Form 10-K/A for the year ended December 31, 2004, Form 10-Q for the three months ended March 31, 2005, and other filings with the SEC. These statements are based on information as of August 4, 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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