MagicBox Inc. Gets Aavelin Digital Signage Message To The World With FOCUS Enhancements FS450 Video Processor

December 15, 2001

FOCUS FS450 Provides Highest Quality Video To Digital Signage And Messaging Markets

CAMPBELL, CA—December 19, 2001-- FOCUS Enhancements, Inc. (NASDAQ: FCSE), today announced that the FS450 video processor is an integral component of the MagicBox Aavelin Digital Signage and Video Messaging System. The FS450’s unmatched ability to display text on a television provides the Aavelin with the quality necessary in the digital signage and messaging markets.

"The architecture of Aavelin is completely focused on video quality," commented MagicBox Inc. Production Manager, Karl Frederick. "Aavelin utilizes a custom multi-threaded media operating system with hardware built for maximum performance. We could only consider using an equally capable video encoding ASIC. The FS450 with TV out was the superior choice."

"MagicBox wanted the TV output of the Aavelin to look like a VGA image, with sharp text, excellent flicker filter reduction, artifact free scaled graphics and perfect TV sizing," stated William Schillhammer, FOCUS Enhancements Vice President of OEM Sales. "MagicBox was able to meet this goal by using the FS450 in the Aavelin, and embedding FS450 support in their multi-media centric OS."

About the FS450

The FOCUS Enhancements FS450 family of ASICs contains the highest quality NTSC/PAL digital video processors on the market. Unlike other PC-to-TV video conversion chips, the FS450 supports true broadcast quality video. It also has a flexible input/output structure allowing it to be compatible with many non-traditional applications.

In addition to its superior video quality, the FOCUS FS450 features advanced video processing technology, allowing a seamless conversion from progressive to interlaced video. The FS450 incorporates a 2D Flicker Filter that significantly enhances small text readability as well as fine detailed graphical fonts such as Kanji, Arabic and Hindi.

The FS450 is a fourth generation video scan converter family that accepts input resolutions up to 1024x768 resolution and formats and converts them to NTSC or PAL standards compliant with SMPTE-170M and CCIR-656. A programmable down scaler fits the incoming resolution to the output display format. The CCIR 656 ports allow external interface to other video chips. The sync control block generates frame reset for genlocking other video components. Required external components are minimal: a single 27 MHz oscillator or crystal and passive parts. Digital progressive RGB inputs are downscaled or upscaled to the CCIR-656 horizontal pixel count and converted to the 656 format.

Additional information about the FS450 technology can be found on the FOCUS website at: http://www.focusinfo.com/products/b_asics.htm

About Aavelin

Aavelin is the newest video messaging system designed for businesses that need impressive Digital Signage solutions. Systems are easy to operate. All you need is the remotely controlled Aavelin hardware unit and a modern PC for content creation. Aavelin features VGA and TV outputs incorporating 24/7 playback, dramatic transitions, multiple video crawl lines, and wide screen Plasma Support.

Types of customers include television studios, cable TV, hotels, manufacturing facilities, casinos, schools, sporting venues, etc. Additional information about Aavelin can be found at: http://www.magicboxinc.com/products/aavelin.html

About FOCUS Enhancements, Inc.

FOCUS Enhancements, Inc. (NASDAQ: FCSE) and Videonics, Inc. (previously NASDAQ: VDNX), both formerly independent public companies, completed a merger on January 16, 2001. The merged company, operating under the FOCUS Enhancements name, is a leading designer of world-class solutions in advanced, proprietary video scan conversion ASICs, and affordable, high quality, digital-video conversion and video production equipment. Semiconductor products include the FS400, FS450 and FS460 series ASICs for scaling, scan conversion, Internet TV and interactive TV applications. Commercial products for video presentation include desktop PC-to-TV scan converters, scalers, and line quadruplers. Video production products include application controllers, edit controllers, mixers, and character and effects generators. The company's products and technologies are sold globally through Original Equipment Manufacturers (OEMs) and resellers to the broadcast, education, cable, business, industrial, presentation, internet, gaming, home video production and home theater markets. FOCUS Enhancements stock is traded on the NASDAQ SmallCap Market under the symbol FCSE. 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.

About MagicBox Inc.

MagicBox Inc. is privately held manufacturer of Character Generators and video messaging systems used in Cable Television and Digital Signage Applications. More information about the MagicBox Aavelin can be obtained from http://www.magicboxinc.com

Statements about future results made in the above referenced (press release/presentation/conference call) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. The Company cautions that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Such projections are based upon many estimates and are inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of FOCUS. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's Form 10-KSB for the year ended December 31, 2000 and other filings with the SEC by both FOCUS and Videonics.

About MagicBox

MagicBox, Inc. has been manufacturing Character Generators and Video Messaging Systems, for CATV, CCTV, Satellite and Digital Signage applications since 1992. Customers have expanded from cable to include education, government, hospitality, medical, and corporate applications. Product development is focused on ease of use and integration with other systems. For more information, visit www.magicboxinc.com.

MagicBox-Making Digital Signage Simple.