InFocus and IBM Sign Projector Licensing Agreement

Wilsonville, Ore., October 7, 1999 -- InFocus® (NASDAQ: INFS), the worldwide leader in data/video projection, today announced a licensing agreement with IBM.  Under the terms of this agreement, InFocus will manufacture a line of projectors under the IBM brand.  This marks IBM's first entry into the digital projection marketplace.  The IBM projector line will include models based on InFocus' award-winning DLP and LCD platforms and will be available in the fourth quarter of this year through IBM's established reseller channels, select retailers and distributors, as well as the ShopIBM direct channel (www.ibm.com/shop).

"We expect IBM-branded projectors to be extremely popular with established IBM customers," said John V. Harker, InFocus chairman, president and CEO. "Our relationship with IBM will help accelerate the growth of the data/video projector category and extend the range and reach of InFocus technology," added Harker.

"Delivering top-quality technology solutions to business professionals has always been important to us," said Bernie Rice, vice president, business and market development, IBM Consumer Division.  "Digital projectors are a key component for many businesses, particularly for the delivery of effective presentations.  Our relationship with InFocus, which is an expert in the digital projection market, will provide a line of projectors that meet customers' requirements for industry-leading technology, service and support."

The worldwide unit volume of ultra-portable projectors (sub ten pounds) will increase 159% in 1999 over 1998, according to a recent report from Pacific Media Associates (PMA), a leading projector and display industry analyst firm based in Mountain View, CA,.  "We're seeing impressive growth in the number of ultra-portable projectors being paired with laptop PCs to create business presentation systems," said Bill Coggshall, PMA president.  "This agreement is a key indication of the growing acceptance of projectors as a necessity in the well-equipped PC user's toolkit."

There is growing evidence that the use of data/video projectors delivers significant  benefits to users, namely increased audience attention and enhanced perception of the presenter.  Additionally, users are finding time and cost savings.  According to a recent International Data Corporation (IDC) Whitepaper, more than one third of corporate projector users stated they typically saved more than one hour in presentation development time, as opposed to hardcopy output.  A similar number of respondents reported cost savings of more than $50.00 per presentation on hardcopy materials and edits.  "When used to deliver a business presentation, data/video projectors unquestionably add to the quality and impact," said Randy Giusto, vice president of worldwide desktop and mobile research, IDC.  " They are gaining widespread adoption today thanks, in part, to increased PC integration, portability and affordability."

In Focus Systems, Inc. (NASDAQ: INFS) is the worldwide leader in developing, manufacturing, and marketing award-winning data/video projection products and services.  All projectors provided by InFocus are backed by a comprehensive two-year service warranty, an exclusive "24-hour seven days per week" customer support hotline (800) 799-9911 and our Priority Care program.  For the fiscal year ending December 31, 1998 InFocus revenue was $306.7M.  The company's headquarters are located at 27700B SW Parkway Avenue, Wilsonville, Oregon 97070-9215.  Call (800) 294-6400 or (503) 685-8888.  InFocus' fax number is (503) 685-8631.

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NOTE: This press release includes forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties and several factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements relate to anticipated revenues, gross margins, earnings, and availability of products manufactured on behalf of the Company, backlog and new product introductions. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: 1) in regard to revenues, gross margins and earnings uncertainties associated with market acceptance of and demand for the Company's products, impact of competitive products and pricing and dependence on third party suppliers; 2) in regard to product availability and backlog, uncertainties associated with manufacturing capabilities and dependence on third party suppliers; and 3) in regard to new product introductions, uncertainties associated with the development of technology and the establishment of full manufacturing capabilities, dependence on third-party suppliers and intellectual property rights. Investors are directed to the Company's filings with the Securities and Exchange Commission, including the Company's 1998 Form 10-K, which are available from the Company without charge, for a more complete description of the risks and uncertainties relating to forward looking statements made by the Company as well as to other aspects of the Company's business.

Alex Kunigenas
Account Coordinator
Golin/Harris International
415.808.9814
akunigenas@golinharris.com

For editorial information, contact:
Linda Ferguson
InFocus
(503) 685-8870
linda.ferguson@infocus.com

Erin Findley
Golin Harris International
(415) 808-9822
efindley@golinharris.com

For investor information, contact:
Scott Hildebrandt
InFocus
(503) 685-8603
scott.hildebrandt@infocus.com