Exhibit 99.1
FOCUS LOGO


FOCUS' FS454 Semiconductor Accepted for Xbox Video Game System

FS454 Provides Lower-cost TV-Out Solution

CAMPBELL,  CA, August 22, 2002, FOCUS  Enhancements  (NASDAQ SC: FCSE) announced
today that it has successfully developed the FS454 chip for the popular Xbox(TM)
video game system from Microsoft,  providing  low-cost TV-Out technology for the
video game console.

"We have been very impressed with FOCUS' TV-Out  technology,  design methodology
and  responsiveness,"  said  Todd  Holmdahl,  General  Manager,  Xbox  Hardware.
"Throughout the development process,  FOCUS' engineers exceeded our expectations
in design  implementation,  delivery  time and quality.  As a result,  we have a
cost-effective  TV-Out chip,  which we anticipate will help us better compete in
this hotly contested, price sensitive market."

In May 2001,  Microsoft and FOCUS Enhancements began an OEM development  program
to produce a low-cost  TV-Out  chip with fine text  capabilities  that would fit
into the existing Xbox configuration, as part of a cost reduction effort. During
the past 12  months,  FOCUS met all  product  specification  milestones  and has
qualified the chip for inclusion into Xbox.

Michael D'Addio,  president and CEO of FOCUS Enhancements,  said, "The fact that
Microsoft has accepted FOCUS technology and is incorporating our FS454 chip into
Xbox  is a  landmark  accomplishment  for  the  company.  It was  an  incredible
experience for us to have the  opportunity to develop this chip for the console.
I am  extremely  proud  of the  performance  of our  semiconductor  team,  which
developed this very important product on schedule,  while either meeting, and in
some cases, exceeding the Microsoft design specifications. The completion of the
FS454  validates  FOCUS'  position as the leading  low-cost,  TV-Out  technology
company.   Being  a  part  of  Xbox  represents  the  single  most   significant
accomplishment  in  FOCUS'  history  and a major  business  opportunity  for the
company.  We look forward to receiving  initial  production orders for the FS454
from Microsoft."


"Microsoft's  Xbox division set extremely  high  standards for this  development
project,"  said Tom Hamilton,  EVP and general  manager of FOCUS'  Semiconductor
Group. "On a very tight schedule, we developed our studio quality video chip and
integrated it into Xbox while reducing costs,  without  impacting the previously
established  console  design  footprint.  The FS454 chip is  expected to provide
immediate,  as well as long term cost benefits for Xbox. I feel we established a
great  partnership and working  relationship with Microsoft during this program.
In our  strategic  plan,  the  FS454  plays a  significant  role  in our  future
business.  We have also  targeted  new markets and  technologies  for  continued
growth.  The FS454 is  representative  of the great  technology that our team is
capable of developing.  As the need for display technology  continues to evolve,
FOCUS' engineering will be at the forefront."

The FOCUS FS454 chip includes 4 DACs and has patented scaling and 2-D adjustable
flicker filter  technology,  enabling stunning visual quality for games and text
rendering.  The new ASIC uses a 0.18 micron process, which costs less, has lower
power requirements and generates less heat than prior technologies.

About Xbox

Xbox  (http://www.xbox.com/)  is Microsoft's future generation video game system
that  delivers the most  powerful  games  experience  ever.  Xbox  empowers game
artists by giving them the technology to fulfill their creative visions as never
before,  creating games that blur the lines between fantasy and reality. Xbox is
now available in North America, Japan, Europe and Australia.

About FOCUS Enhancements, Inc.

FOCUS  Enhancements,  Inc.  (NASDAQ SC: FCSE) is a leading designer of advanced,
proprietary video technology for the rapidly converging  computer and television
industries. Headquartered in Campbell, CA, FOCUS Enhancements designs, develops,
and markets video solutions in two distinct markets: advanced, proprietary video
scan  conversion  ICs  (integrated  circuits)  and  affordable,   high  quality,
digital-video conversion and video production equipment.  Semiconductor products
include  designs for PCs,  Game Cards,  Internet  TV,  set-top  boxes,  Internet
appliances, and interactive TV applications,  and they are sold globally through
distributors to Original Equipment Manufacturers (OEMs). FOCUS' complete line of
video  presentation  and video  production  devices  are sold  globally  through
resellers   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.


Xbox is a trademark of Microsoft  Corporation  in the United States and/or other
countries.

Contacts:

Investors - Company: Steve Sheldon,  Investor Relations Mgr, FOCUS Enhancements,
(978) 250-6704

Investors - Agency:  Lillian Armstrong or Kirsten Chapman,  Lippert/Heilshorn  &
Assoc. (415) 433-3777

Financial Media: Sean Leous, Lippert/Heilshorn & Assoc (212) 838-3777

Trade Media:  Miiko Mentz or Autumn Truong,  Future Works, Inc. (408) 428-0895 x
112 / x102

Marketing:  Mike Kelly, VP, Marketing,  Semiconductor Group, FOCUS Enhancements,
(503) 615-7716

This press release  contains  forward-looking  statements that involve risks and
uncertainties.  These statements relate to future events or our future financial
performance.  Statements  about  future  results  made  in  this  press  release
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.  FOCUS 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  statements and any projections are based upon estimates and are inherently
subject to significant economic and competitive uncertainties and contingencies,
many of which are beyond the control of FOCUS.  Important  assumptions and other
factors  could  cause  actual  results  to differ  materially  from those in the
forward-looking  statements,  including  those  specified in the Company's  Form
10-KSB for the year ended  December  31, 2001 and other FOCUS  filings  with the
SEC.

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