Investor Presentation Craig Hallum Roadshow MayJune 2006 1

Investor Presentation Craig Hallum Roadshow May/June 2006 1

Forward-looking Statements in this Presentation Include various risks and uncertainties Actual results may differ materially from those in the forward-looking statements Investors are directed to the Company's filings with the Securities and Exchange Commission • For example Form 10 K, 10 Q, etc. • Includes a more complete description of the risks and uncertainties relating to forward looking statements made by the Company • Also includes a description of other aspects of the Company's business 2

FINANCIAL PERFORMANCE 3

Income Statement – Q 1 2006 vs Q 4 2005 Proforma* Q 1 2006 Total revenue 128. 9 Proforma* Q 4 2005 $ 112. 0 $ Gross margin 16. 7 14. 9% 15. 5 12. 0% Operating expenses 24. 9 22. 2% 24. 7 19. 1% Operating (loss)/income (8. 2) (7. 3%) (9. 2) (7. 1%) Non-operating expense (7. 0) (6. 3%) (0. 4) (0. 3%) (15. 2) (13. 6%) (9. 6) (7. 4%) $ (15. 3) (13. 6%) $ (8. 9) (6. 9%) Income before tax Net income EPS $ (0. 39) $ (0. 22) *Q 1 2006 and Q 4 2005 results exclude nonrecurring charges/(benefits) of $1. 1 M and ($1. 0)M, respectively 4

Balance Sheet – 3/31/06 vs 12/31/05 3/31/06 Cash & Marketable Securities $ 78. 2 Accounts Receivable 69. 2 Inventories 49. 9 66. 4 PP&E 12/31/05 $ 80. 1 70. 9 8. 7 7. 2 Other Assets 32. 2 39. 2 Total Assets 263. 8 $ 238. 2 $ Accounts Payable 66. 3 74. 7 Accrued Liabilities 28. 9 30. 9 Other LT Liabilities 3. 0 5 Equity 140. 0

2005 10 -K and Q 1 10 -Q Filing Update Nasdaq granted extension for filing 10 -K and 10 -Q until July 7 and July 17, respectively • Believe we will be able to meet deadlines Audit committee investigations now substantially complete • Import/export findings with OFAC and BIS for review • China and revenue recognition reports being drafted • KPMG currently reviewing work of investigators Findings • Import/export situation results in a handful of reported possible violations, significantly less than originally anticipated • No major findings at this point in China or revenue recognition investigations 6

Restructuring Plan Delivering Improving Financial Results Core projection business focus • Alternatives for wireless initiative and The University Network expected to be complete in late Q 2/early Q 3 Reduced quarterly operating expenses • Headcount down 15% worldwide • Lower infrastructure costs • Control of discretionary spending Improved gross margins • Expect to achieve targeted range of 16 to 18% in Q 2 • Supply chain efficiencies • New products shipping now resulting in lower product costs (volume shipments a little later than originally planned but now ramping) 7

Major Restructuring Initiatives Focus on largest and most profitable international geographies • UK, France, Germany, Nordics, Australia, China, India Focus on largest, most profitable and fastest growing US channels • Retail, PC Distribution, direct fulfilled Driving supply chain efficiency to reduce product costs • Leveraging new contract manufacturing relationships • Changing the game regarding key business terms with partners • Improving inventory velocity and touches between contract manufacturers and end user customers Driving end user awareness and preference to pull product through retail, our web store, and other channels where customers want to buy 8

UNIQUE STREGTHS 9

Industry Leading Products Commercial Consumer Home Cinema SP 777 Installation / Integration 8 xx Family Meeting Room Home Theater IP 74 and IN 76 LP 600 and 640 Home Entertainment Value / Mobile 10 IN 24 and IN 26 LP 120 IN 72

Consistent Award Winning Products Global industry awards recognize our excellence in product design and innovation IN 72, IN 74, IN 76: CES Innovations Award Winners, January In. Focus Screen. Play 4805: Group Test Winner described as “The Swiss army knife of projectors. ” WHAT HI FI? Sound and Vision – UK, August 11 In. Focus Screen. Play 5700: “Best Buy” and “Test Winner” for “cinematic dexterity” and “fine detail response. ” What Projector? UK, August IN 72: CEA Technology is a Girl’s Best Friend Winner, January IN 72: PC Magazines Last Gadget Standing Finalist, January

And the award goes to…. 12

Strong Channel Position #1 market share in the business and consumer retail projector market #1 market share in PC Distribution #1 recognized brand among projector buyers 13 Source: NPT Intellect, TFCInfo

Low Cost Supply Chain ODM Partners: Foxconn, Funai, Delta. Joint Venture: SMT, a JV between In. Focus and TCL (China) • Supplier to parent companies and OEM vendor to third parties • 50% of profits and royalty stream to In. Focus Use lowest cost resources on mainstream product Invest In. Focus R&D on breakthrough innovations 14

ATTRACTIVE MARKET DYNAMICS 15

Our Market Is Growing 16 *DTC Q 1 2006 Forecast

Key Industry Growth Trends Growth in Consumer (Home Theater) and Educational markets • Home Theater expected to grow 65% annually through 2008 (per IDC) • Total market is 1/3 rd education that is less than 30% penetrated (PMA, SRI) Growth in retail channel • 2004 thru 2007 CAGR for the retail channel is 55% (IDC) Growth in value categories at $799 to $1, 099 ASP “sweet spot” 17

Major Growth Opportunities Less than 4% of mobile professionals carry a projector when they travel. 80% of small businesses don’t use projectors Only 5% of conference rooms are projector enabled. There is only 1 projector for every 3 to 4 classrooms (NA). Over 13 million “big screen displays” sold to consumers in 2005. Over 20 million gaming consoles sold in USA in 2005 Source: DTC, IDC, i. Suppli, Jupiter Research, PMA, QED 18

Market Growth Drivers Over the Next 12 Months Lower ASPs Increased awareness • CE retailer adoption, validation of projection category New content / devices • HD gaming consoles, HD broadcast content, HD DVD, i. Pod type devices New technologies driving device costs down 19

OUR FUTURE 20

In. Focus – Focused Positioned for growth Consumer insights driven, marketing company • • Bring to market award winning, breakthrough products Drive demand with consumer focused marketing Positioned for profits 80/20 geographic / channel distribution plan World-class operations – manufacturing and logistics Lean SG&A cost base Positioned for continued leadership 21

New Products in 1 H 2006 Introduced new home and business projector models – all new design language based on customer research • Now it’s about usage, usability and style – beyond feeds and speeds 22

Brand Health - Why it’s so important…. Consumer Purchasing Cycle Awareness Knowledge Desire Purchase Satisfaction Metrics Total Awareness Brand equities Aided Un-Aided Emotional (Personality) Persuasion Rational (Benefits) Recommendation 23 Consideration Sales / Revenue Satisfaction Loyalty Advocacy

Brand Personality Traits 24

1 H Brand Campaign: Print Creative Target Audience: Young Indulgent Male Publication: Golf Digest Sporting News 25

In Summary We have a strong competitive position • An industry and market share leader • Breadth and depth of product portfolio The market opportunity for our products is robust Improving financial results • Restructuring substantially complete-lower costs • Supply chain efficiencies increasing gross margins • New products shipping positioning us for revenue growth as we enter 2 H 2006. Strong balance sheet 26

THANK YOU 27