Diamond Multimedia's New Monster 3D II Roars Into Retail; Pre-Order Customers and Sweepstakes Winners Given First Priority For This Award-Winning Product.

SAN JOSE, Calif.--(BUSINESS WIRE)--March 12, 1998--Setting a new standard in 3D performance for PC gamers, Diamond Multimedia Systems, Inc. (NASDAQ:DIMD), a leader in interactive multimedia acceleration, today announced the first shipments of its 8MB Monster 3D II.

Featuring 3Dfx Interactive's new Voodoo2 graphics chipset and a top-quality 3D game bundle, the 8MB Monster 3D II has an estimated retail price of $249.95. This high-quality 3D gaming accelerator has already received a "5-X, Gameworthy" rating from CNET's Gamecenter, a leading PC gaming resource on the Internet.

The first shipments will be to Diamond Multimedia customers who participated in various pre-order programs, including CompUSA, Babbages/Software Etc., Electronics Boutique and Future Shop. These shipments will ensure that end-users who prepaid for their Monster 3D II accelerators with these retailers receive their orders as quickly as possible. Volume retail shipments are expected to increase rapidly. Additionally, a Monster 3D II graphics accelerator will be shipped to each of the ten winners of Diamond's online sweepstakes held in February. The ten winners are located in Clyde, California; South Bend, Indiana; Bedford, Ohio; Toledo, Ohio; Eddy Stone, Pennsylvania; Rowlette, Texas; Tranby, Norway; Scotland, UK; Staffordshire, UK; and Wittlich, Rheinland, Pfalt.

CNET Gamecenter Awards Monster 3D II 5 X's and a Gameworthy Rating

In its performance review of the 8MB Monster 3D II posted on March 11, CNET Gamecenter, a popular source for PC gaming information on the Internet, awarded Diamond's 8MB Monster 3D II its first ever "5X" rating for a 3D accelerator and a "Gameworthy" award. The Monster 3D earned these top honors for its "wicked-fast performance in 3D games" and "great game bundle." The Gamecenter review also noted that the Monster 3D II's display utilities incorporate "several handy features" including a simple slider mechanism allowing gamers to easily increase the Monster 3D II's clock speed for increased performance. For the complete review of this "awesome graphics card," visit CNET Gamecenter online at www.gamecenter.com.

Monster 3D II Upgrade Program

Diamond Multimedia has an aggressive product upgrade program designed for first-generation Monster 3D customers who want to purchase a Monster 3D II. Monster 3D owners can choose from two upgrade program options: a $50 upgrade rebate offer, where customers mail in a coupon with their Monster 3D proof-of-purchase; or a product exchange offer, allowing customers to return their original Monster 3D boards directly to Diamond and then purchase a Monster 3D II through Diamond Multimedia's Product Trade-in Program at www.diamondmm.com/products/promotions/trade-in/.

Additions to 8MB Monster 3D II's Game Bundle

Diamond Multimedia also announced that it has added a game sampler disk from Electronic Arts(R) to its already robust game bundle featuring titles from Eidos Interactive, LucasArts Entertainment and a full version of Activision's Heavy Gear optimized for Voodoo2 to use blended textures. The Electronic Arts game sampler disc features demos of Andretti Racing, Wing Commander Prophecy, Nuclear Strike, Madden NFL '98 and Need For Speed II SE specially optimized for Voodoo graphics.

"Diamond Multimedia has worked hard to deliver a product that not only utilizes the latest 3D technology, but performs to the level that discriminating PC gamers have come to expect from the world's leading provider of graphics accelerators," said David Watkins, vice president of the Multimedia Division at Diamond Multimedia. "We are confident that Diamond's Monster 3D II meets those expectations and will be a top choice among Voodoo2 fans nationwide."

Diamond's new Monster 3D II combines 3Dfx Interactive's powerful Voodoo2 graphics engine and Diamond's own 8MB board design with high-performance software drivers to deliver up to three times the performance of the company's original, best-selling Monster 3D. Designed to perform all major 3D functions, Diamond's new accelerator is capable of achieving 3D rendering rates of more than 60 frames-per-second (fps) without slowing down overall system performance, and supports Z-buffering in resolutions up to 800 X 600 with 16-bit color. For more information about the 8MB Monster 3D II's frame rate benchmarks, visit www.diamondmm.com/products/benchmarks/bench-monster3d2.html. Also shipping with Diamond's Monster 3D II graphics accelerator is a heavily-shielded VGA pass-through cable.

"In order to provide our customers with the sharpest, most vibrant graphics possible, Diamond Multimedia has bundled a high-quality VGA pass-through cable with the Monster 3D II," said Ken Wirt, vice president of corporate marketing at Diamond Multimedia. "The heavy shielding of this cable will keep system interference with video display at an absolute minimum."

MEGAMonster Option for Serious 6X Gaming Power

Diamond Multimedia offers a MEGAMonster option that can double a computer's 3D performance speed up to six times that of the original Monster 3D by using two Monster 3D II accelerators simultaneously. Diamond Multimedia is shipping in every retail box a 3Dfx-specified 1.5-inch cable to connect two Monster 3D II accelerators for MEGAMonster performance.

Diamond will offer a special upgrade program for Monster 3D II customers who want to purchase a second Monster 3D II to take advantage of the MEGAMonster option. Details for the MEGAMonster upgrade program are available by calling Diamond Multimedia direct at 800/468-5846.

New "Diamond Underground" Delivers the Ultimate Online Source for Serious Gaming

Diamond Multimedia also announced today a new online gaming site, "Diamond Underground." For the latest in 3D gaming hardware, patches, demos, software listings, contests and more, gamers can visit the new "Diamond Underground" Internet site at www.diamondmm/underground.

Diamond Multimedia

Diamond Multimedia is driving the interactive multimedia market by providing advanced solutions for home, business and professional desktop computer users, enabling them to create, access and experience compelling new media content from their desktops and through the Internet. Diamond accelerates multimedia from the Internet to the hard drive with products that include the Stealth and Viper series of media accelerators, the Monster series of entertainment 3D and sound accelerators, the Fire series of professional 3D and SCSI accelerators, and the Supra series of modems. Diamond also markets DVD and video phone kits. Diamond's common stock is traded on the Nasdaq Stock Market under the symbol DIMD, and its web site address is www.diamondmm.com.

How to Contact Diamond Multimedia

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

Internet Web Site: http://www.diamondmm.com Diamond Multimedia's Headquarters and Multimedia Division: 408-325-7000; Fax: [phone] Communications Division (Supra brand modems) Main Phone Number: 360-604-1400; Fax: [phone] European Division (Germany): [phone]; (UK): [phone]; (France) [phone] Korean Office (Seoul): [phone]; Fax: [phone] Japanese Office (Tokyo): [phone]; Fax: [phone] ASEAN Office (Singapore): [phone]; Fax: [phone] Hong Kong Office: [phone]; Fax: [phone] Australian Office (Sydney): [phone]; Fax [phone] Product Support (Voice), United States: 541-967-2450; Europe (Germany) [phone]; Europe (UK) [phone]; TDD/TTY Support 541-967-2451 Product Support (Fax), United States: 541-967-2401; Europe (Germany) [phone]; Europe (UK): [phone]; (France) [phone] Pre-sales Information: 1-800-468-5846 Investor Relations: 408-325-7476; 1-888-474-3463 (U.S. and Canada) 24-Hour Fax-On-Demand Service: 1-800-380-0030 FTP site: ftp.diamondmm.com BBS: 541-967-2444 (to 33.6 Kbps) or 408-383-0551 (ISDN); Europe (Germany) BBS at [phone] (to 28.8 Kbps) or [phone] (ISDN); Europe (UK) at [phone] (to 33.6 Kbps)

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Note to Editors: Monster 3D and Supra are either trademarks or registered trademarks of Diamond Multimedia Systems, Inc. Viper is a Registered Trademark of Directed Electronics, Inc., Used under License. All other trademarks referenced are the service mark, trademark or registered trademark of their respective manufacturers. This announcement relates to products whose introductions are in North America. The product name, contents, prices and availability may differ elsewhere in the world according to local factors and requirements.

Except for historical information contained herein, the matters set forth in this press release, such as statements relating to the Company's ability to successfully exploit technological and market developments, the timing and success of new product introductions by the Company and its competitors, and the Company's ability to invest in new technologies and to enhance its existing systems are forward-looking statements that are subject to risks and uncertainties, including the impact of competitive products and pricing and alternative technological advances, the timely and successful development and market acceptance of new products and upgrades to existing products, and other risks as detailed from time to time in Diamond Multimedia's SEC filings, including its most recent Forms 10-K and 10-Q.

CONTACT: Diamond Multimedia Systems

Mary Medeiros or Bob Nelson,

408/325-7350 or 408/325-7419

[e-mail] or [e-mail]

or

Faiola Davis Public Relations 

Andrea Sausedo, 213/933-4959

[e-mail]