Focus Enhancements- (FCSE)

[Paule]

FOCUS' FS450 ASIC Chosen by Kreatel For Digital Interactive Services; Leading Supplier of Gateway Solutions in Sweden


CAMPBELL, Calif., Feb 12, 2001 (BUSINESS WIRE) -- FOCUS Enhancements, Inc.
(NASDAQ: FCSE) announced today that a leading supplier of intelligent service
gateway solutions in Sweden, Kreatel Communications, is in full production with
their Tornado/K5 digital set-top box that uses the FS450 to produce the highest
quality TV-out available on the market for their set-top boxes.

Kreatel is the first company to deliver an IP-based Broadband terminal, the
Tornado-K5 service gateway, which enables the TV to become a two-way
communication console for digital interactive services, such as Video-On-Demand,
Music-On-Demand, and home shopping. Kreatel is targeting IP-Based broadband
service providers through this gateway for interactive multimedia and
entertainment broadband services. The Tornado/K5 runs on a Linux operating
system and Mozilla Web browser. All communication is IP based, allowing
operators to develop services using standard Internet tools such as HTML and
Javascript.

"Kreatel has launched an Internet set-top box using the FS450 and a National
Semiconductor architecture in Europe. The video quality produced on this
low-cost Internet set-top box is unsurpassed by any other in the market," said
Bill Schillhammer, Vice President of OEM Sales for FOCUS. "Additionally, this is
the first product in the world to launch using FOCUS Enhanced digital
Picture-In-Picture technology producing full digital broadcast quality DVD and
digital cable viewing while sharing the TV with the computer desktop,"
Schillhammer continued.

Kreatel's solution provides the ability to combine TV and web content, creating
unlimited opportunities for Interactive TV. Imagine ordering a pizza while
watching a movie or a football game right from the television. Movies and music
can be ordered and delivered on-demand with new ways of financing these services
that are charged and managed in a way that is transparent to the end user.

"The FS450's capabilities support high resolutions, up to XGA, uniform scaling
and 2D Flicker Filter for small font readability which allows the TV to be the
centerpiece of this viewing experience," said Lars Bengtsson, Managing Director
of Kreatel Communications. Bengtsson continued, "Having the television perform
tasks normally relegated to a computer, is a substantial development in the
evolution of our living room as we know it. Choosing FOCUS Enhancements as our
TV-out solution is a testament to the technology that they provide."


 About Kreatel Communications

Kreatel Communications AB, founded in 1995, develops and markets system
solutions in the area of intelligent service gateways that make it possible to
take advantage of the rapidly growing number of services on the new telecom and
broadband networks. The product portfolio includes a broad spectrum of products
with high software content that enable value-added services on fixed telephone
networks, GSM networks and the new broadband networks. In a short period of
time, Kreatel has taken a leading position as supplier of systems for Least Cost
Routing, i.e. for directing calls to alternative telecom operators in
deregulated telecom markets. Kreatel has its headquarters in Linkoping and is
also established in Gothenburg. As of December 2000, approximately 110 people
work for the company, which had net sales of 85 million SEK during the last
twelve months.

FOCUS Enhancements, Inc. (NASDAQ: FCSE) and Videonics, Inc. (formerly NASDAQ:
VDNX), completed a merger of the two companies 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 and FS450 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, 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.