Faroudja And FOCUS Enhancements Agree To End Merger Discussions

Faroudja, Inc. (Nasdaq: FDJA) and FOCUS Enhancements, Inc. (Nasdaq: FCSE), announced today they have mutually agreed to terminate merger discussions that were initiated pursuant to a letter of intent announced on October 5, 1999.Faroudja, Inc. (Nasdaq: FDJA) is a world leader in high-performance video processing technologies for markets requiring superior image quality solutions. The Company provides innovative products for the HDTV broadcast, home theater, digital television and PC/TV convergence markets. Faroudja's technologies are protected by more than 60 patents. Faroudja has received numerous awards, including an Emmy award for Engineering Development and a Lifetime Achievement Emmy presented in June 1998 to its founder, Yves Faroudja.FOCUS Enhancements, Inc. (Nasdaq: FCSE) is an industry leader in the development and marketing of advanced, proprietary video conversion ASICs for the rapidly converging, multi-billion dollar Internet, computer and television industries. The Company's technology, which is sold globally through Original Equipment Manufacturers (OEMs) and resellers, merges computer-generated graphics and television displays for Internet viewing, presentations, training, education, video teleconferencing, and home gaming markets. In addition, the Company is developing a family of products that will enable the current installed base of televisions, VCRs, and camcorders to remain functional in upcoming HDTV environments.