Diamond Multimedia Announces Exclusive Partnership with Symbios Logic to Deliver New Multimedia I/O Products; Diamond Teams with World Leader in Bus Interface Technology to Bring Affordable Ultra SCSI Host Adapters to Windows 95 and Windows NT 4.0 Users.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 27, 1997--Diamond Multimedia Systems, Inc., (NASDAQ: DIMD), a leader in the Internet multimedia market, today announced a strategic alliance with Symbios Logic Inc. to bring affordable Ultra SCSI host adapters to Window 95 and Windows NT 4.0 users.

Under the terms of the agreement, Diamond Multimedia will market PCI Ultra/Ultra-wide SCSI host adapters based on the Symbios Logic SYM53C875 RISC-based SCSI I/O processor and associated software drivers, BIOS and utilities. The relationship also envisions the future development of products based on Symbios Logic's advanced I/O technology, including Firewire (IEEE 1394) adapters for the PC. Additionally, Symbios Logic has granted Diamond Multimedia exclusivity in the retail and commercial distribution channels for 18 months. Both companies will cooperatively sell to the industrial distribution and OEM channels.

The first multimedia I/O product from Diamond, the FirePort 40, slated to begin shipping in early February in the U.S. (March worldwide), is a PCI Ultra/Ultra-wide SCSI Host Adapter Kit which includes: the adapter; Windows 95, Windows NT 4.0 and ASPI-compliant drivers and utilities; a 4-position SCSI cable; an extensive installation and user's guide; and a complete CD-R multimedia mastering Elektroson software bundle, which has an estimated retail value of over $300.

"SCSI is today's logical choice for multimedia I/O because of the bandwidth requirements for multimedia applications," said Bill Schroeder, president and chief executive officer of Diamond Multimedia. "Both Diamond and Symbios Logic are proven leaders in their respective markets.

"Diamond Multimedia's expertise is in developing, marketing and supporting worldwide products that accelerate desktop multimedia data in the PC environment. Symbios Logic's long-time expertise is in developing high-performance SCSI bus interface technology and chips that are highly compatible and interoperable," Schroeder continued. "Symbios Logic's exceptional core competencies will enable Diamond to make readily available to the commercial and consumer markets a complete line of products that will accelerate multimedia from the Internet to the hard drive."

"Both Diamond Multimedia and Symbios Logic have committed to jointly invest in a broad compatibility and interoperability development and test program to ensure that both companies' customers are delivered products that are able to install on a variety of platforms and connect to a broad population of SCSI peripherals," said Jim Gifford, vice president of engineering for multimedia I/O products at Diamond.

Symbios Logic developed and introduced the industry's first SCSI protocol chip and has had significant success selling to major OEMs worldwide. Symbios Logic's internal research indicates that it holds over thirty-three percent (33%) of the worldwide SCSI chip market, and the company serves major OEM customers with its SCSI chip family including Compaq Computer Corp. and Sun Microsystems, Inc.

Gene Patterson, president and chief executive officer for Symbios Logic, stated, "We're very excited about this relationship, which will allow us to bring Ultra SCSI technology to the PC desktop through Diamond Multimedia's strong presence in the retail, VAR and commercial distribution channels worldwide. We anticipate a very beneficial and profitable relationship with Diamond Multimedia."

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. Products include the Stealth and Monster 3D series of media accelerators, the Fire series of professional 3D graphics and SCSI I/O data accelerators, and the Supra series of modems and ISDN adapters.

Diamond also markets sound cards and multimedia and video phone upgrade kits. Headquartered in San Jose, CA, Diamond has sales, marketing and technical support facilities in Vancouver (Wash.), Singapore, Hong Kong, Seoul, Tokyo, Starnberg (Germany), Paris and Winnersh (U.K.). Diamond's products are sold through local and international distributors as well as directly to major retailers, VARs and OEMs worldwide. Diamond's common stock is traded on the Nasdaq Stock Market under the symbol DIMD.

Symbios Logic

Symbios Logic creates storage management and peripheral connection solutions and provides a full spectrum of products for these solutions including ASICs, integrated circuits, host adapters and subsystems as well as supporting software drivers and utilities.

The Company focuses on developing technology partnerships with its customers and vendors, including original equipment manufactures and resellers in the networked computing, peripherals and communications markets. Formed in 1995, Symbios Logic is a wholly owned, independently operated subsidiary of Hyundai Electronics America. The Company has a total worldwide employment of 2,300 with operations in Wichita, Kansas, Fort Collins (headquarters) and Colorado Springs, Colorado, plus 20 worldwide sales offices. For further information, please call 1-800-856-3093 or visit our Web site at www.symbios.com . Our e-mail address for product information is [e-mail] .

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 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] Support Information Line for Communications: 1-800-774-4965 Product Support (Voice), Visual Systems: 408/325-7100; Communications: 541/967-2450; Europe (Germany) [phone]; Europe (UK) [phone]; ISDN Support Center 408/325-7110; Fire GL Support Center 408/325-7120 Product Support (Fax), Visual Systems: 408/325-7171; Communications: 541/967-2401; Europe (Germany) [phone]; Europe (UK): [phone]; (France) [phone] Pre-sales Information, Visual Systems: 1-800-468-5846; Communications: 1-800-727-8772 Investor Relations: 408/325-7476; Fax-On-Demand: 1-800-346-3329; International Fax-On-Demand: 201/433-1778 24-Hour Fax-On-Demand Service, Visual Systems: 1-800-380-0030; Communications: 541/967-0072 FTP sites: ftp.diamondmm.com; or Supra: ftp.supra.com BBS for 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]-

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

Lorraine Jenkins, 408/325-7346

[e-mail]

or

Symbios Logic

Lea Schwartz, 970/226-9550

[e-mail]