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P R E S S   R E L E A S E

InFocus® Announces Strong Second Quarter Results

Wilsonville, Ore., July 08, 1999 --  InFocus® (NASDAQ: INFS), today reported better than expected second quarter results with revenues of $93.4 million and earnings of $0.21 per share.

Second quarter revenues of $93.4 million increased 29% from $72.3 million in the second quarter of 1998 and were 8% above first quarter 1999 revenues of $86.5 million.  Due to very strong performance of the new line-up of ultraportable projectors, unit shipments in the quarter were up 36% over the second quarter of 1998.  "Demand for our products was very strong in the quarter," said chairman, president and CEO, John V. Harker.  "Our ultraportable products in particular are clearly very well-positioned for the fastest growing segment of the market," added Harker.  Net income in the second quarter of $5.0 million improved for the fourth consecutive quarter and was $6.2 million over the second quarter 1998 net loss of $1.2 million and was up $2.1 million or 74% over first quarter 1999 net income of $2.8 million.  Second quarter earnings per share of $0.21 increased $0.26 over the second quarter 1998 net loss of $0.05 and was up 75% over first quarter 1999 earnings of  $0.12 per share.

Gross margins of 28.3% improved for the fifth consecutive quarter and were up 7.6 percentage points from 20.7% in the second quarter of 1998 and up 4.1 percentage points from 24.2% in the first quarter of 1999.  Gross margins improved primarily due to a higher mix of newly introduced ultraportable products and stable pricing for those products because of both strong demand and supply constraint.  "Gross margin improvement has been a high priority for us, and I am pleased to see the progress we have made reducing product costs while bringing leading edge products to market," said Harker.

The balance sheet continued to strengthen with cash and marketable securities increasing $4.3 million to $52.4 million from $48.1 million in the first quarter of 1999.  Additionally, inventory turns remained solid at 7.6 turns compared to 7.7 turns in the first quarter and accounts receivable days sales outstanding (DSO) were much improved at 69 days compared to 86 days in the first quarter.  

 "We had a strong quarter across the board," said Harker.  "Our backlog increased significantly reflecting very strong demand for our products.  Revenues, profitability, and market share were up, and we signed agreements with two new strategic partners which should further strengthen our worldwide market leadership position," added Harker.

In Focus Systems, Inc. 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.



   June 30,    December 31,
    1999   1998
    (unaudited)    
Assets        
Current Assets:        
    Cash and cash equivalents $          46,186  $             26,786
    Marketable securities - held to maturity              4,105               11,805
    Accounts receivable, net of allowances            71,984               78,698
    Inventories, net            33,738               31,279
    Income taxes receivable              1,330                1,125
    Deferred income taxes              3,937                2,531
    Other current assets              4,783                3,593
        Total Current Assets           166,063             155,817
         
Marketable securities - held to maturity              2,085                     - 
Property and equipment, net of accumulated        
       depreciation            11,613               13,056
Deferred income taxes              1,833                1,352
Other assets, net              2,070                1,706
        Total Assets $         183,664  $           171,931
         
         
Liabilities and Shareholders' Equity        
Current Liabilities:        
    Accounts payable $          25,631  $             27,657
    Payroll and related benefits payable              4,153                2,179
    Marketing incentives payable              4,511                2,983
    Accrued warranty              3,711                2,161
    Other current liabilities              1,769                1,350
        Total Current Liabilities            39,775               36,330
         
Shareholders' Equity:        
    Common stock, 50,000,000 shares authorized;        
      shares issued and outstanding:  22,325,835        
      and 22,218,729            54,298               53,895
    Additional paid-in capital            12,442               12,359
    Retained earnings            77,149               69,347
       Total Shareholders' Equity           143,889             135,601
       Total Liabilities and Shareholders' Equity $         183,664  $           171,931
         

 ##

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.

For editorial information contact:

Nelson Pratt
InFocus
(503) 685-8959
prinfo@infocus.com

For investor information contact:

Jeff Bouchard
InFocus
(503) 685-8609
investor.relations@infocus.com