Diamond Multimedia's Shotgun Technology Gains ISP Support; Dual-Line Analog Modem Service Now Available In Over 1,500 Cities Nationwide.

VANCOUVER, Wash.--(BUSINESS WIRE)--Aug. 12, 1998--Diamond Multimedia Systems Inc. (NASDAQ:DIMD), a leader in interactive multimedia acceleration, today announced that its Shotgun(TM) technology is now supported by an elite group of national, regional and local Internet Service Providers (ISPs) in over 1,500 cities in the United States and Canada.

Shotgun is Diamond Multimedia's advanced modem bonding software capable of delivering Internet connections of up to 112Kbps over two ordinary phone lines. Shotgun technology is bundled at no additional charge with Diamond's award-winning SupraExpress(TM) 56 modems as well as its new dual-line modem, the SupraSonic(R) II.

Netcom Expands National Shotgun Support

Netcom, a leading national ISP, began offering Shotgun dual-line modem service in May of this year through its various Internet access service plans. To date, Netcom has over 200 POP's (Point of Presence) in cities across the nation offering Shotgun dual-line service. Diamond's Shotgun technology offers near ISDN speeds for just an additional $10 per month to Netcom's current single line individual Internet monthly service plan.

Regional, Local ISP Support Grows

Numerous regional and local ISP's are now supporting Shotgun technology enabling them to differentiate their service and attract new customers. Recent supporters include: Planet Systems Network of Arizona; Teleport, servicing Oregon and Washington; Cyberspace covering Massachusetts and Connecticut; Intrex supporting the Carolinas; MatNet Inc. of Alaska; Abraxis of Georgia; and Oricom Internet Inc. of Quebec, Canada, is now supporting Shotgun in the Quebec City region.

"Internet customers around the country are now experiencing faster downloads and the advanced features of Shotgun technology," said Jim Cady, vice president and general manager of Diamond Multimedia's Communications Division. "We are pleased with the current ISP support of dual-line service and look forward to even more ISP's offering Shotgun technology in the near future."

To learn more about Shotgun technology and search for a local ISP supporting Shotgun, consult Diamond Multimedia's website at www.diamondmm.com/shotgun.

Shotgun Features

Diamond Multimedia's Shotgun technology bonds two analog modems to work intelligently over ordinary phone lines and achieve speeds of up to 112Kbps. "Once you've surfed the World Wide Web at this speed, you'll never want to go back," stated Computer Shopper's September 1998 review of the Shotgun application. Shotgun offers the added benefit of releasing one phone line for voice calls while maintaining an Internet connection on the other line. Features include:

Bandwidth-on-Demand: Shotgun "senses" when greater bandwidth is needed for an Internet connection and automatically adds the second phone line. When less bandwidth is required, the second phone line is automatically released for other uses.

Manual Control: Shotgun allows a user to add or release their second phone line by clicking on a software control button.

Voice Priority: During an Internet session, Shotgun detects incoming and outgoing phone calls and releases the appropriate phone line to allow the incoming or outgoing call to be completed while maintaining the data connection on the other line (works with Diamond Multimedia's SupraSonic II dual-line modem only and requires call waiting service from the phone company).

Current owners of diamond SupraExpress 56 and SupraSonic II modems can download Shotgun for Windows '95(TM) and Windows '98(TM) from the company website at no additional charge. Owners of Diamond SupraMax 56 modems can purchase Shotgun from Diamond's Customer Service for $19.95 plus shipping and handling beginning at the end of August. ISPs interested in offering dual analog access should contact [e-mail] or [e-mail].

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 and SCSI 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 http://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] System Business Unit (Micronics brand system boards) Main Phone Number: 510/651-2300 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: 800/468-5846 24-Hour Fax-On-Demand Service: 800/380-0030 Investor Relations: 408/325-7476; 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)

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.

    CONTACT:  Diamond Multimedia Systems Inc.
               Communications Division
               Douglas Little/Mary Medeiros
               360/604-1469 / 408-325-7350
               [e-mail]
               or
               Faiola Davis Public Relations
               Norma Velvikis/Sara Faiola, 213/933-4959
               [e-mail]