InFocus Layoffs and Restructuring

• Mike Yonker, Executive Vice President and Chief Financial Officer, is leaving InFocus. Roger Rowe, who has been Vice President, Corporate Controller since joining the company in April 2002, has been promoted to Chief Financial Officer effective immediately. To ensure a seamless transition, Mike will be with InFocus through December 31, 2005.
  
• The position of Senior Vice President of Worldwide Sales is being eliminated resulting in three regionally-focused sales organizations reporting directly to Kyle Ranson, Chief Executive Officer and President. As a result, Scott Hix has chosen to resign and is leaving the company effective September 30, 2005.
  
• The product line structure is being discontinued and being replaced by a simpler, more cost effective functional structure. As a result, Steve Stark has been promoted to Vice President of Engineering to provide consolidated leadership to our engineering team.
  
• John Harker and the remaining members of the Board of Directors have reached mutual agreement that he step down as Chairman of the Board effective September 30, 2005. John remains a member of the Board of Directors.

In addition to executive management changes, the company is also today announcing its intention to take actions in other areas to simplify its business and reduce operating expenses by between 20 and 25 percent from second quarter of 2005 levels. Today, specifically the company is announcing the following actions:

• Due to pricing pressures in the thin display market, the company will cease investment in developing thin displays leveraging its proprietary technology and exit the market for these products. As a result, the company expects to record a third quarter charge of approximately $8 million related to write-downs of inventory, tooling and manufacturing equipment associated with these products.
  
• The company expects to record an additional $4 million in inventory charges for the third quarter related to write-downs of other excess inventory and spare parts, remanufactured projectors, and identified excess component exposures identified during the contract manufacturing transition from Flextronics.
  
• The company is currently evaluating investment in headcount and discretionary program spending in all areas of the company infrastructure to reduce operating expenses by 20 to 25 percent. These reductions are expected to occur over the next few months with the majority of these reductions taken as swiftly as possible. As a result of these actions, the company expects to record restructuring charges of approximately $7 million.

"Our performance to date has made it clear that the time for decisive action is now. To return the business to profitability, we must become a more focused company. While some of these actions may limit short-term revenue growth opportunities, we must make the changes necessary to have a healthy core business," said Kyle Ranson, Chief Executive Officer and President, InFocus Corporation. "I am confident that we are taking the right steps to regain financial success."

Commenting on the executive changes, Kyle said, "John Harker, Mike Yonker and Scott Hix have made significant contributions to InFocus providing leadership to build the company into a global market leader duringtheir tenure. I thank them for their past contributions and wish them the best."

A web cast of the conference call session including brief remarks and a question and answer period will be archived and accessible on the InFocus website for individuals who were unable to listen to the live telecast. The conference call replay will also be available through September 23, 2005 by calling (888) 509-0081 (U.S.) or (416) 695-5275 (outside U.S.). A Pin # is not required.

For more information, please visit www.infocus.com .