Focus Enhancements Provides TV-Out Chip for Innovative New Digital Gateway Appliance From Beijing Sino-American Boyi Software Development Co.

Company's Video Encoder Chip Connects Video Telephone, Movies, Shows, Entertainment and Web Content to Televisions

Focus Enhancements, Inc. (NASDAQ: FCSE), a worldwide leader in Ultra Wideband (UWB) wireless technology, video conversion and digital media, announced Beijing Sino-American Boyi Software Development Co., Ltd., a provider of advanced audio-video, surveillance and communication technology for consumers, has selected the company's FS453 TV-out video encoder chip for its new ET Mini-station, My Magic Digital Box.

The ET Mini-station is a multi functional digital household appliance based on PC architecture. It integrates online multimedia functionality into televisions, enabling video telephone over IP, internet web browsing, web-based movies, video text messaging, digital video recording and playback of TV programs, smart home solutions, and a variety of surveillance and appliance control capabilities. The product is based on the Freescale i.MX21 processor and uses the FS453 to output video content to TV displays.

"Much of the content from this appliance will be viewed by customers on in their living rooms," said Mr. Wei Bingyu, general manager of Beijing Sino-American Boyi Software Development. "Focus' superior TV-out quality assures that viewer will receive a flawless viewing experience when watching content on their televisions."

"The selection of our TV-out chip in this innovative device underscores the world class quality of our video conversion technology," said David Huang, sales director for Focus Enhancements' semiconductor group - Asia pacific. "Focus, along with its China distributor, have worked closely with the team from Boyi to make sure the TV-out quality will not only be pleasing to customers and viewers, but also allow them to open the door to a new world of online multimedia entertainment, content, and communication."

Beijing Sino-American Boyi Software Development Co., Ltd., is a registered hi-tech enterprises funded by American Expressway International Ltd. Since its founding in June 2001, Boyi has dedicated itself to developing high quality JJeto communications software products such as Web Video Conferencing, EIM (Enterprise Instant Messenger), Digital Home, remote surveillance systems, and many others. Boyi is determined to provide advanced audio-video technology and communication technology for common families, helping to get every household onto the modern digital standard at a reasonable price. Boyi has also been involved in a variety of fields such as energy and petrochemical production, hospital management, telecommunication services, and government and public affairs. Boyi's staff is composed of leading edge talents, and the company maintains relationships with a number of renowned international enterprises. As a subsidiary of American Expressway International Ltd., Beijing Sino-American Boyi Software Development Co., Ltd. specializes in the research and development of computer software. Backed up by American Expressway's profound resources, Boyi has recruited a staff of the most talented, experienced and dedicated IT software engineers and management experts. Boyi leverages the expertise of cooperative, enterprising, and innovative IT professionals. As a foreign funded enterprise, Boyi has had access to advanced foreign management expertise, making it the leading company in its field. Now the company is applying a long-term strategy to cultivate a highly efficient management staff, produce OEM products, seek out new markets, and create opportunities for development and expansion. Shortly after it was accredited the title of "Hi-Tech Enterprises" by the Beijing Municipal Science & Technology Commission in November 2002, Boyi obtained ISO90001 certification in May 2003.

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. Many of the world's largest technology companies partner with Focus Enhancements for high performance TV encoder, UWB, and video convergence solutions. 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 Systems 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. Such statements include the risk factors specified in the company's Form 10-K for the year ended December 31, 2006, and Form 10-Q for the period ending March 31, 2007 as well as other filings with the SEC. These statements are based on information as of July 24, 2007 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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