InFocus Partners With Three-Five Systems to Drive Development of Promising New Technology

WILSONVILLE, Ore., May 17 /PRNewswire/ -- InFocus(R) (Nasdaq: INFS), the worldwide leader in data/video projection, today announced the formalization of an agreement with Three-Five Systems, Inc. (NYSE: TFS), designer and manufacturer of custom LCD products, to drive the development of a new display technology. InFocus will collaborate with Three-Five Systems to create a Liquid Crystal on Silicon (LCoS(TM)) display technology customized for front projection data/video projectors.

InFocus research and development strategy calls for the company to partner with and invest in a variety of technology companies, in order to provide customers with leadership products using the most innovative technologies available. The partnership with Three-Five Systems will pave the way for the utilization of LCoS(TM) in the data/video projection market and promises to deliver a low cost solution for users who are looking for high-performance, high-resolution, yet affordable projectors.

LCoS(TM) microdisplays measure less than an inch diagonally, but can contain more than one million pixels, thereby offering excellent resolution, brightness, color, depth and clarity. Microdisplays address the data/video projector market's need for high-information content in a small sized cost-effective package, without compromising image quality.

"We view InFocus as a company that continues to set the standard in state-of-the-art data/video projectors," said Jack Saltich, president and CEO of Three-Five Systems. "InFocus has excellent capabilities in all facets of the projection business, including optics, electronics and design. That expertise, combined with our very high-resolution LCoS(TM) microdisplay technology, is a natural fit."

John Harker, InFocus chairman, president and CEO commented, "Partnering with Three-Five Systems to develop an LCoS(TM) device that is customized for use in data/video projectors will help us deliver state-of-the-art, high quality products to the market. Seeking and finding emerging technologies to work with, and partnering with capable suppliers like Three-Five Systems, to provide products based on new technologies is the best way for InFocus to popularize projector use among our growing audience of professionals."

InFocus Systems, Inc. (Nasdaq: INFS) is the worldwide leader in developing, manufacturing and marketing award-winning data/video projectors 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, 1999 InFocus revenue was $390.7M. 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.

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 1999 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.