Diamond Multimedia "accelerates the world" of PC gamers at E3 1997; Show-stopping PC gaming solutions including best-of-class DVD kit, lightning-fast 3D graphics boards, positional 3D sound card and more.

SAN JOSE, Calif.--(BUSINESS WIRE)--June 19, 1997--The Electronic Entertainment Expo (E3) in Atlanta, June 19-21, is a PC gamer's dream come true, with awe-inspiring computer multimedia add-ons and gaming peripherals on display.

This year, Diamond Multimedia Systems, Inc. (NASDAQ:DIMD), will showcase the hottest high-tech gear for transforming a PC into the ultimate gaming machine at the World Congress Center, booth No. 329. Diamond Multimedia's product line-up will feature its new DVD kit, a next-generation true positional 3D sound accelerator, a wireless mouse and several hot accelerators for mind-blowing 3D graphics and lightning-fast gameplay.

Cutting Edge PC Peripherals for Advanced Interactive Multimedia Entertainment

Diamond Multimedia offers new DVD, positional 3D audio and wireless mouse solutions for Windows 95 users.

Maximum DVD Kit -- Diamond Multimedia has charged into the DVD frontier with its first DVD kit for the PC. Diamond's Maximum DVD Kit features Toshiba's DVD-ROM drive, Diamond's PCI-based DVD adapter with decoders for MPEG-2 video and Dolby AC-3 digital audio and several entertainment titles. Diamond's kit also includes enhanced features such as high-quality TV-out support.

Diamond Multimedia's Maximum DVD Kit is expected to be available at retail this month at an estimated retail price below $600.

Monster Sound -- Diamond Multimedia's new Windows 95 PCI-based audio accelerator, with enhanced support for Microsoft DirectX API game titles, greatly improves PC sound capability. Featuring the 3D audio technology developed for NASA 3D sound simulators and theme park rides, Monster Sound will have gamers looking over their shoulders for unseen enemies, dodging from helicopters above and leaning into racetrack turns when playing their favorite PC games.

Monster Sound features true multi-stream positional 3D audio (A3D) and quad-speaker output for the ultimate in CD-quality interactive 3D sound. For older DOS titles, Monster Sound co-exists with a PC's legacy-based audio components. Monster Sound, including software bundle, is available now for an estimated retail price of $199.95.

Monster 3D -- Diamond's award-winning 3D-only gaming accelerator brings today's state-of-the-art video game arcade technology to personal computers. Designed for dedicated PC gamers, Diamond's Monster 3D provides users with photo-realistic and lightning-fast 3D graphics for real-time action for playing today's most advanced 3D games.

Diamond's 3D-only pass-through graphics subsystem, featuring 4MB of EDO DRAM and 3Dfx Interactive's renowned Voodoo Graphics engine, works seamlessly with most VGA and 2D Windows accelerators that users may already have in their PCs. Diamond's Monster 3D, including a software bundle of more than 10 popular game titles, is currently available for an estimated retail price of $199.95.

This year at E3, more than 150 entertainment titles powered by Diamond's Monster 3D will be on display in various booths on the show floor.

GyroMouse - Featuring wireless control from up to 30 feet away (even through walls), Diamond Multimedia's GyroMouse works as a standard mouse for PC desktop use; as a remote control for gameplay and Internet surfing; and as a pointer for business multimedia presentations.

Unlike an infrared mouse, GyroMouse's patented "Gyro Functionality" and radio frequency technologies let users experience freedom of movement without having to aim directly at an infrared sensor. With an estimated retail price of $99.95, Diamond Multimedia's GyroMouse is expected to begin sample production in July and volume production in August.

Power Acceleration for Running the Latest PC Games and Multimedia Applications

Diamond Multimedia provides cutting-edge graphics accelerators for gaming and business use.

Stealth 3D 2000 Pro -- Recently unveiled as the fastest accelerator in Diamond's renowned Stealth 3D product line, the Stealth 3D 2000 Pro delivers top-of-class performance for today's computer entertainment, Internet multimedia and general business PC users.

The Stealth 3D 2000 Pro with 4MB of memory, utilizing S3's 64-bit ViRGE/DX engine, features state-of-the-art 2D performance, enhanced 3D acceleration with Z-buffer support, high-quality, full-screen digital video at up to 30 frames-per-second and "TV out" for viewing PC graphics on a television screen.

Diamond's Stealth 3D 2000 Pro, including a robust software bundle, is currently available for an estimated retail price of $149.95.

Stealth 3D 3000 -- The Diamond Stealth 3D 3000 delivers ultra-fast 2D graphics acceleration combined with digital video playback and 3D animation for today's general business, professional graphics, Internet 3D VRML and computer entertainment markets.

Designed for applications that require high-resolution graphics and intensive data processing capability, the Diamond Stealth 3D 3000, features 4MB VRAM memory for ultra-fast system performance under Windows 95, Windows 3.1x and Windows NT 4.0 operating systems. The retail version of Diamond's Stealth 3D 3000, including software bundle, is currently available for an estimated retail price of $199.95.

Fire GL 1000 -- An ideal entry-level professional 3D graphics accelerator for content creators and game developers, as well as general users, demanding excellent 3D performance for both professional and gaming applications, the Diamond Fire GL 1000 delivers enhanced support for accelerated 3D animation, authoring and CAD applications at a competitive price.

Featuring the high-performance PERMEDIA NT chipset, including PERMEDIA rendering and GLINT Delta geometry processors from 3Dlabs, Inc., the Diamond Fire GL 1000 works with OpenGL under Windows NT 4.0 and Direct 3D under Windows 95.

The Diamond Fire GL 1000, available in 4MB or 8MB SGRAM memory configurations, comes bundled with CAD productivity, world creation and VRML authoring tools. The Diamond Fire GL 1000 is currently available through select distributors, retailers, system integrators and VARs with estimated retail prices starting at $299.95.

Advanced Modem Technology for Blazing-Fast Communications

Diamond Multimedia offers hot, new 56K modems for home and business users.

SupraExpress 56 Modems -- Diamond Multimedia's SupraExpress 56 modems are designed from the ground up to provide data download speeds of up to 56,000 bits per second (bps). Diamond SupraExpress 56 modems are software upgradeable providing users with the most current modem technology.

SupraExpress 56 modems incorporate Rockwell and Lucent's new K56flex technology, which offers what Diamond Multimedia believes is among the highest transmission speeds available today over ordinary phone lines.

For high-speed Internet surfing up to 56,000 bps, Diamond Multimedia's SupraExpress 56 modems provide corporate, SOHO and home computer users with one of the most advanced modem technologies available for use over the public telephone network.

For the PC, the SupraExpress 56i (internal), the SupraExpress 56e (external) and the SupraExpress 56i SP (internal with speakerphone capability) are currently shipping for estimated retail prices of $149.95, $169.95 and $169.95, respectively.

Diamond Multimedia

Diamond Multimedia is driving the Internet multimedia market by providing interactivity and connectivity 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 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(R) 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 Audio-Visual Systems 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] Support Information Line for Communications: 1-800-774-4965 Product Support (Voice), Audio-Visual Systems: 408-325-7100;

Communications: 541-967-2450; Europe (Germany) +49-

8151-266-330; Europe (UK) [phone]; ISDN Support Center

408-325-7110; Fire GL Support Center 408-325-7120;

TDD/TTY Support 541-967-2451 Product Support (Fax), Audio-Visual Systems: 408-325-7171;

Communications: 541-967-2401; Europe (Germany) +49-

8151-266-331; Europe (UK): [phone]; (France) [phone] Pre-sales Information, Audio-Visual Systems: 1-800-468-5846;

Communications: 1-800-727-8772 Investor Relations: 408-325-7476 24-Hour Fax-On-Demand Service, Audio-Visual Systems: 1-800-380-0030;

Communications: 541-967-0072 FTP sites: ftp.diamondmm.com; or Supra: ftp.supra.com BBS for Audio-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 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. All other trademarks referenced are the service mark, trademark or registered trademark of their respective manufacturers. This announcement relates to products whose launch are in the United States of America. The product names 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

Joan Huang, 408/325-7236

[e-mail]

or

Faiola Davis Public Relations 

Andrea Sausedo, 213/933-4959

[e-mail]