Diamond Multimedia's New High-Performance Monster Sound MX300 Audio Accelerator Ships to Retail.

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 2, 1998--

Diamond's Top-of-the-Line Sound Card Features Advanced 3D Positional

Audio Technology, Dolby Digital Support and MP3 Audio Utilities

for Phenomenal PC Gaming and Entertainment

Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in interactive multimedia acceleration and PC entertainment, today announced that the company is shipping its new high-performance Monster Sound MX300 audio accelerator to North American customers this week.

Diamond's Monster Sound MX300, featuring Aureal Semiconductor's Vortex(TM) 2 processor and A3D 2.0 positional 3D audio support, is the ideal solution for PC gamers and entertainment enthusiasts who demand a sound card with the latest advancements, including Dolby Digital(TM) support and interactive positional 3D audio rendering technology.

Diamond's Monster Sound MX300, including a robust software bundle with popular 3D games and audio applications, is available for a U.S. estimated retail price (ERP) of $99.95 through major retailers including CompUSA, Babbages and Electronics Boutique, as well on-line retailers including Diamond's Online Store at http://www.diamondmm.com/where-to-buy/online-store/

"The Monster Sound MX300 delivers breakthrough PC audio capabilities right to the ears of PC gaming enthusiasts for under $100," said Ken Comstock, general manager of Diamond Multimedia's audio business unit. "We expect computer users craving the ultimate in PC gaming entertainment to make Monster Sound MX300 their top PC sound card choice."

Complete PC Audio Entertainment Solution

Diamond's PCI-based Monster Sound MX300 offers complete support for interactive positional 3D sound technology to today's PC gaming enthusiasts and accents the vivid 3D audio environments required by the latest PC entertainment titles.

In addition, Diamond's Monster Sound MX300 provides professional-quality DLS compatible 320-voice wavetable synthesis and audio playback through headphones, and two or four speakers.

Diamond's Monster Sound MX300 also supports Dolby Digital, enabling computer users to enjoy DVD titles with a home theater audio experience by virtualizing a 5.1 speaker set-up through two or four speakers. Hardware upgrades to the Monster Sound MX300 are simple through Diamond's own MX-LINK upgrade, allowing consumers to easily extend their audio experience with up to six speakers, as well as digital input and output, using a S/PDIF interface.

Diamond's Monster Sound MX300 is compatible with games developed using Aureal A3D 1.0 and A3D 2.0 API's, Microsoft DirectSound, DirectSound3D, and all DirectSound3D extensions. SoundBlaster(R) Pro compatibility is also provided for PC titles that require real-mode DOS support.

Additionally, the Monster Sound MX300 fully supports playback for MP3 audio files and works well with Diamond Multimedia's Rio PMP300 portable MP3 player. MusicMatch Jukebox MP3 utility software is included for encoding, decoding and database management of MP3-based music files.

Monster Sound MX300 users can download MP3 files from the Internet or convert songs from their CD collection on their PC with the MP3 encoding utility.

Exciting 3D Software Bundle for Hair-Raising Entertainment

Diamond Multimedia's Monster Sound MX300 comes with an exciting software bundle including: Half-Life: Day One(TM) by Valve; Recoil(TM) by Zipper; MusicMatch(TM) Jukebox MP3 software; a high-quality audio utilities bundle from Midisoft(R), including Studio Recording Session(TM), Internet Sound Bar 2.0(TM), MediaWorks(TM) 98 and Pro-quality Wave Editor; a DVD sampler; and Zoran SoftDVD(TM) software decoder/player.

Diamond Multimedia Delivers Advanced PCI-Based Audio for PC Users

Diamond Multimedia is a leading provider of next-generation PCI-based audio solutions for PCs. Diamond was among the first companies to deliver advanced PCI-based sound technology to consumers with its award-winning Monster Sound accelerator.

The company's PC audio product line consists of the Monster Sound brand, models MX200 and MX300, featuring state-of-the-art positional 3D audio for an immersive PC entertainment experience, and the Sonic Impact line of affordable PCI-based audio solutions for business and mainstream computer users.

About 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 user with products that include the Stealth and Viper(R) series of media accelerators, the Monster series of entertainment 3D and sound accelerators, the Fire series of professional 3D accelerators, the Micronics series of system boards, the Supra(R) series of modems, and the HomeFree line of home networking products. 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: -0-

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]
Swedish Office: [phone]; Fax [phone]
Product Support (Voice), United States: 541-967-2450; Europe (Germany)
     [phone]; Europe (UK) [phone]; Europe (France)
     [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
24-Hour Fax-On-Demand Service: 1-800-380-0030
Investor Relations: 408-325-7476; 1-888-474-3463 (U.S. and Canada)
FTP site: ftp.diamondmm.com
BBS:  541-967-2444 (to 33.6 Kbps);  Europe (Germany) BBS at
     [phone] (to 28.8 Kbps) or [phone] (ISDN); Europe
     (UK) at [phone] (to 33.6 Kbps)

-0-

Note to Editors: Monster 3D, Supra and HomeFree are either trademarks or registered trademarks of Diamond Multimedia Systems, Inc. Monster(R) is a registered trademark of Monster Cable. Viper(R) 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.