DIAMOND MULTIMEDIA ANNOUNCES PRICE REDUCTIONS FOR HIGH-SPEED DESKTOP FAXMODEMS; Dramatic 15-30% Savings Make Supra Modems Available to Wider Market Segments.

VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 16, 1996--Diamond Multimedia Systems, Inc. (Nasdaq: DIMD) today announced aggressive price reductions on several faxmodems in its award-winning SupraSonic, SupraFAXModem and SupraExpress lines for personal computers and Macintosh systems.

"Diamond's new price reduction is attributed to healthy modem sales and a corporate commitment to drive the market with price-competitive solutions," said James H. Cutburth, vice president of marketing for Diamond Multimedia's Communications Division. "Diamond continues to work aggressively to reduce costs by improving manufacturing processes and consolidating purchasing. This enables us to pass these savings to our customers. At the same time, by breaking the $100 price barrier with the newly-priced SupraExpress modem, we believe we will continue to expand our market share of entry-level users." -0-

Effective immediately, the new Diamond Supra brand faxmodem pricing
is as follows:

Product                     Current        New           Total
                            Est. Retail    Est. Retail   Reduction
                            Price          Price

PC Fax/Modems
SupraExpress 336
 Plug n Play (PC int.)      $119           $99           $20
SupraExpress 336 PnP
 (PC ext.)                  $149           $129          $20
SupraExpress 336i Sp
 (PC int.)                  $149           $129          $20
SupraExpress 288
 Plug n Play (PC int.)      $99            $84           $15
SupraFAXModem 336 PnP
 (PC int.)                  $179           $149          $30

SupraSonic 336V+ (PC ext.)  $289           $249          $40

Macintosh Fax/Modems
SupraExpress 336 (Mac ext.) $149           $129          $20
SupraSonic 336V+ (Mac ext.) $289           $249          $40

Diamond's entire Supra modem line incorporates the ITU-TSS V.34 transmission standard providing data speeds up to 33,600 bps and provides V.80, the ITU's international standard for video phone ready V.34 modems. V.80 is the application interface that defines how video software runs on modems. Diamond Supra modems are available through retail, distribution and select OEMs nationwide and carry a five-year limited warranty.

Diamond Multimedia

Diamond Multimedia is driving the desktop multimedia market by providing interactivity and connectivity solutions for home, business and professional PC and Macintosh users. Products include the Stealth and Monster 3D series of multimedia accelerators, the Fire GL series of professional 3D and CAD accelerators, and the Supra series of faxmodems and NetCommander ISDN adapters. Diamond also markets sound cards and multimedia and Internet upgrade kits. Headquartered in San Jose, Calif., Diamond has sales, marketing and technical facilities in Vancouver (Wash.), Singapore, Tokyo, Starnberg (Germany), Clichy (France) and Winnersh (U.K.). Diamond's products are sold through regional, national and international distributors as well as to major computer retailers, mass merchants and OEMs worldwide. Diamond's common stock is traded on the Nasdaq Stock Market under the symbol DIMD. -0-

How to Contact Diamond Multimedia

There are many ways to reach Diamond for sales support, technical
assistance, driver updates and general information:

Diamond Multimedia's Headquarters and Visual Systems Division:
408-325-7000; Fax:  [phone]

Diamond Communications Division (Supra brand modems) Main Phone Number:
360-604-1400; Fax: [phone]

Diamond European Division (Germany):  [phone]; (UK):
[phone]; (France) [phone]

Diamond Japanese Office (Tokyo):  [phone]; Fax:  [phone]

Support Information Line for Communications:  1-800-774-4965

Product Support (Voice), Visual Systems: 408-325-7100; Communications:
541-967-2450; Europe (Germany) [phone]; Europe (UK)
[phone]

Product Support (Fax), Visual Systems:  408-325-7171; Communications:
541-967-2401; Europe (Germany)   [phone];  Europe (UK):
[phone]; (France) [phone]

Pre-sales Information, Visual Systems:  1-800-468-5846; Communications:
1-800-727-8772

Investor Relations:  408-325-7476; Fax-On-Demand:  1-800-346-3329

24-Hour Fax-On-Demand Service, Visual Systems:  1-800-380-0030;
Communications:  541-967-0072

America Online (Keyword: DIAMOND; Mail:  SUPRACORP2)

CompuServe: Visual Systems: (GO DIAMOND); Communications: (GO SUPRA);
Europe:  (GO SPEA)

The Microsoft Network:  Find DIAMOND

FTP sites: ftp.diamondmm.com;  or Supra: ftp.supra.com

Internet Web Sites:  http://www.diamondmm.com; or Europe (Germany):
http://www.spea.com

BBS for Visual Systems 408-325-7080 (to 14.4 Kbps) or 408-325-7175
(to 28.8 Kbps) or 408-383-0551 (ISDN);

Communications BBS: 541-967-2444; Europe (Germany) BBS at
[phone] (to 14.4 Kbps) or [phone] (to 33.6 Kbps) or
[phone] (ISDN); Europe (UK) at [phone]

-0-

NOTE: Monster 3D, NetCommander, SupraSonic, SupraFAXModem and SupraExpress are trademarks of Diamond Multimedia Systems, Inc., and Supra is a registered trademark of Diamond Multimedia Systems, Inc. All other trademarks referenced are the service mark, trademark or registered trademark of their respective manufacturers.

CONTACT: Diamond Multimedia

Communications Division

Tamara Hanna, 360/604-1469

Email: [e-mail]

or

Faiola Davis Public Relations

Norma Velvikis/Sara Faiola, 213/933-4959

Email: [e-mail]