FOCUS, Videonics merge

<%=company1%> (Wilmington, MA), a developer of video scanning technology is merging with Videonics, a Campbell, CA-based company specializing in video editing and mixing products in a deal worth $7.5 million.

The agreement provides for each share of Videonics common stock to be converted into 0.87 shares of FOCUS Enhancements common stock. The merger, subject to shareholder approval, is expected to be completed by December. Combined company revenues are $28 million.

Michael D'Addio, Videonics Chairman and CEO will become president, CEO and a Director of FOCUS Ehancements. Videonics CFO Gary Williams will become FOCUS Enhancements CFO. Thomas Massie, FOCUS' Chairman of the Board, will remain in that position as well as will Brett Moyer, FOCUS' Executive Vice President and Chief Operating Officer.

FOCUS will move to a smaller facility in Massachusetts to include sales, marketing and service operations while the former Videonics' Campbell, CA headquarters will house finance, administration and operations.

Officials said they plan to integrate FOCUS's scan conversion technology into Videonics' video editing and switching products as well as develop new silicon for the OEM market, which will become a more significant part of the company's business.

"In the advent of interactive television, we believe video mixing and video switching capabilities will become very important," says FOCUS chairman of the board Thomas Massie. "Certain new ASICs currently under development by the FOCUS engineering team have integrated video mixing and switching technology. We plan to launch these ASICs later this year."

Edited by Tom Butts