Exhibit 99.1
FOCUS Enhancements Completes Visual Circuits Acquisition;
Expands Product Suite to Include Networked Media Servers for Digital Signage
CAMPBELL, Calif.--(BUSINESS WIRE)--June 2, 2004--FOCUS
Enhancements, Inc. (Nasdaq:FCSE) has acquired substantially all the
assets and assumed certain liabilities of Visual Circuits Corporation
(VCC) through the issuance of approximately 3.8 million shares of
FOCUS Enhancements' common stock. VCC, located in Minneapolis,
develops integrated hardware, software and network solutions that
schedule, distribute, store and present digital video in a wide range
of commercial media applications. The parties signed a definitive
agreement for the acquisition of the assets on January 27th and first
announced the transaction on January 28th.
Brett Moyer, president and chief executive officer of FOCUS
Enhancements, stated, "We are executing our `glass-to-glass' strategy,
to ensure we provide the highest quality digital media workflow
products for acquiring, managing, and distributing video to the
professional markets. The VCC acquisition places FOCUS Enhancements in
the rapidly growing markets of video information distribution and
digital signage used by retailers, educators, healthcare and
hospitality providers, retail and cable television operators, museums,
theme parks, trade shows, and other businesses and institutions."
-- VCC's networked media servers and devices enable users to
manage, distribute and present standard and high-definition
video and high-resolution graphics over terrestrial and
satellite networks.
-- At the National Association of Broadcasters trade show in
April, VCC launched both the Gemini 2 Universal Media Card and
the MANTIS MC(TM). The Gemini 2 Universal Media card is the
first multi-channel, high-definition video-decoder PCI card
with 32-bit accelerated graphics and dual functionality. The
MANTIS, is the first multi-channel high-definition media
player, delivering stunning and realistic image quality using
the Gemini 2 Universal Media Card.
-- VCC's products are currently used in more than 3500 retail and
nearly 1500 healthcare locations throughout North America,
with hundreds more throughout Europe and the Far East. For
example, national retailers Wal-Mart and Best Buy use VCC
solutions in thousands of locations to drive in-store video
networks, delivering, storing and presenting content for
programmed, live and interactive promotions, advertising and
training.
-- VCC's Firefly MZ, a network media player that drives digital
signage content and applications, was recently tabbed as one
of the "8 Great New Products" by Pro AV Magazine at the recent
NSCA industry trade show. Firefly MZ will be featured in a
digital signage seminar co-sponsored by JVC Professional
Products, at the upcoming Infocomm trade show.
-- Other VCC clients include such well-known entities as The Hard
Rock Cafe, SEGA GameWorks, LEGO, NCAA Visitors Center, EPCOT,
NASA, Daytona Raceway Museum and the American Museum of
Natural History.
David Parish, former VCC chief executive officer and now FOCUS
Enhancements' new Executive VP of Business Development, continued,
"Joining FOCUS Enhancements immediately increases VCC's distribution
channels and exposure by aligning our products with a broad digital
video workflow product suite. In addition, we are thrilled with the
long-term synergies of marrying our network video solutions with the
potential offered by FOCUS Enhancements' Ultra Wideband (UWB) wireless
initiative. We intend to use the UWB chips to enable our standard and
high definition networks to transmit video wirelessly, which we
believe will be a great customer benefit."
About Visual Circuits
Founded in 1991, Visual Circuits has a reputation for its digital
video expertise and is known for developing integrated hardware,
software and network products that manage, schedule, distribute, store
and present digital video in commercial-market media applications.
Visual Circuits' products are found worldwide in retail,
entertainment, education and healthcare facilities and range from
circuit boards to standard and high-definition network-storage media
appliances, all delivering industrial strength reliability with unique
features and compelling value. Sold primarily through system
integrators and commercial AV dealers, Visual Circuits' products are
designed to serve both Pro AV and IT requirements. Under the terms of
the asset acquisition, Visual Circuits will cease operations and
liquidate its assets to its stockholders after all its creditors are
paid. For more information on Visual Circuits, visit
www.visualcircuits.com or call 800-250-5533.
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 about future results and other expectations 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. A number of factors in
addition to those discussed herein could cause actual results to
differ materially from expectations. Demand for FOCUS Enhancements'
products which impacts revenue and the gross margin percentage, is
affected by business and economic conditions and changes in customer
order patterns. Any projections are based upon many factors and are
inherently subject to significant economic and competitive
uncertainties and contingencies, many of which are beyond the control
of FOCUS Enhancements. Important assumptions and other important
factors, including risk 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,
2003 and other filings with the SEC. The company undertakes no
obligation to update forward-looking statements, whether as a result
of new information, future events, or otherwise.
CONTACT: Lippert/Heilshorn & Associates
Lillian Armstrong, 415-433-3777
Kirsten Chapman, 415-433-3777
Brendan Lahiff, 415-433-3777
Brendan@lhai-sf.com