Diamond Multimedia's Product Line Now Standard in ZT Group's Newly Launched Personal Computers.

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 19, 1999--

Award-Winning Diamond Peripherals Featured As

Standard In Desktop and Workstation Solutions

Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in PC multimedia and Internet connectivity, today announced that ZT Group Inc., a top systems integrator in the Eastern Region of the United States, will feature six Diamond PC peripherals in both their desktop and workstation product lines targeted at the mainstream and high-end PC consumer.

ZT Group's new desktops and workstations will come standard with various Diamond award-winning products including the Monster Sound MX300 audio solution, the SupraMax PCI controller-less modem, the Supra SST Softmodem and the Speedstar A50 8MB graphics accelerator. In addition, select ZT Group computers will feature either the Stealth III S540 16MB or the Viper V770 32MB graphics accelerator as standard. Upgrade options of Diamond's graphics accelerators are available with all of the new ZT Group computers.

"We're pleased ZT Group has chosen Diamond products to support their new Emax and EZ link computers and are able to provide a top-selling multimedia selection to today's PC consumer,"said Anthony Taroni, director of systems integrator sales at Diamond Multimedia. "ZT Group has recognized the value in integrating Diamond components into their systems and throughout their product lines."

Diamond's Award-Winning Products

Diamond's Viper V770, a recent PC Magazine's Editor's Choice recipient, and the Stealth III S540 graphics accelerator, honored with PC Gamer's Editor's Choice award, provide PC consumers with the ultimate choice in multimedia products tailored to fit their needs. These award-winning graphics products are standard in select ZT Group computers. Additional Diamond products are featured in the new top-quality ZT Group computers including the Monster Sound MX300 audio accelerator, recognized for its amazing 3D positional audio capabilities, as well as two high-speed Internet access products, the Supra Max controller-less modem and the Supra SST Softmodem. Several ZT computer models also include the Diamond Speedstar A50 8MB graphics accelerator.

"With the recognized quality and performance inherent in their products, it was a natural decision to offer our customers selected Diamond PC components as standard in our computers," said Jordan Shen, director of marketing for ZT Group, Inc. "Powering our PC's with quality Diamond products enables our customers to experience the top in PC Internet, audio and graphics technologies."

For more information regarding Diamond's award-winning product line, consumers can visit Diamond Multimedia's website at www.diamondmm.com or online store at www.estore.diamondmm.com.

ZT Group's New Computers

The following Diamond components are available in ZT Group's recently launched computers:

--------- ------- ----------------------------------------------------
ZT GROUP  SYSTEM                                           DIAMOND
PC MODEL  PROCESSOR   DIAMOND PERIPHERAL (STANDARD)        UPGRADE
NAME                                                       OPTION
--------- ------- ---------- ------------- ------------- =============
EZ-400    AMD K-6 Speedstar  Supra SST     Monster Sound Stealth III
                  A50 8MB    Softmodem     MX300         S540 16MB
--------- ------- ---------- ------------- ------------- =============
EZ-450    AMD K-6 Stealth    Supra SST     Monster Sound Viper V770
                  III S540   Softmodem     MX300         32MB
                  16MB
--------- ------- ---------- ------------- ------------- =============
EZ-K7-550 AMD K-7 Viper V770 Supra Max 56K Monster Sound Viper V770
                  32MB       modem         MX300         Ultra 32MB
--------- ------- ---------- ------------- ------------- =============
EMX-400c  Pentium Speedstar  Supra SST     Monster Sound Stealth III
          Celeron A50 8MB    Softmodem     MX300         S540 16MB
--------- ------- ---------- ------------- ------------- =============
EMX-450   Pentium Stealth    Supra SST     Monster Sound Viper V770
          II      III S540   Softmodem     MX300         32MB
                  16MB
--------- ------- ---------- ------------- ------------- =============
EMX-550   Pentium Viper V770 Supra Max 56K Monster Sound Viper V770
          III-550 32MB       modem         MX300         Ultra 32MB
--------- ------- ---------- ------------- ------------- =============

ZT Group's Diamond-optimized PC's are available at Computer Discounters of Terrytown, LA, UCR of New Jersey located in Cherry Hill, NJ, Frontier Technology of Flushing, NY, Micrograph Computers of Mineola, NY, Digilink Computers of Okemos, MI and Stone Technology Inc. of Toledo, OH as well as various other resellers. PC consumers requiring additional information regarding ZT Group's new computers including a complete list of resellers and pricing can call 201/559-1000 or visit their website at www.ztgroup.com.

About ZT Group, Inc.

ZT Group, Inc., headquartered in New Jersey, has been a provider of high-quality PC and server systems for the past seven years. The company currently has sales and warehouse locations in both their corporate headquarters and operating in Manhattan New York for the past seven years. Founded with the vision of specializing in the design of computer systems based on proven technology, ZT Group, Inc. provides fully customizable solutions for VARs, ISPs, corporate markets, governments and education institutions. Because ZT Group clearly recognizes the needs of the PC market our customers have come to associate our ZT Group with high-quality PC systems at competitive prices and superior customer service.

About Diamond Multimedia

Diamond Multimedia is a leader in PC multimedia and Internet connectivity, providing advanced products that enable desktop computer users to create, access and experience compelling new media content from their PC's and through the Internet. Products include the Rio series of Internet audio appliances, the Stealth and Viper(R) series of video accelerators, the Monster series of 3D gaming accelerators, the Fire series of professional graphics accelerators, the Supra(R) series of modems, and the HomeFree line of home networking products. Diamond's common stock is traded on the NASDAQ under the symbol DIMD, and its web site address is www.diamondmm.com. The Company's Internet music portal site is at www.RioPort.com and its e-commerce sites at www.estore.diamondmm.com and eAuction.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 Sites: www.diamondmm.com and www.RioPort.com Diamond e-commerce Sites: www.estore.diamondmm.com and

eAuction.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] Latin America Office (Miami): 305-593-8777; 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: Europe (Germany) BBS at [phone] (to 28.8 Kbps) or

[phone] (ISDN); Europe (UK) at [phone]

(to 33.6 Kbps)

HomeFree, Monster 3D, Rio, Shotgun, SpeedStar and SupraSonic 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.