Diamond Multimedia Announces Support for Handspring's SpringBoard Platform; New Rio Player to Work with Handspring's Visor Product.

VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 14, 1999--

Diamond Multimedia Systems, Inc. (NASDAQ: DIMD), a leader in PC multimedia and Internet connectivity, today announced it will build a specialized Rio(TM) MP3 player to support Handspring's new Visor product based on the Springboard(TM) platform. The all-new Rio player will be custom-designed for Visor's "SpringBoard" expansion slot and will provide the breakthrough platform with the functionality of a plug-and-play MP3 player.

"We believe this agreement opens a potentially important market for the Rio player," said Mike Reed, director of product marketing for Diamond Multimedia's Communications Division. "Our current Rio models have been popular with high-school and college students and the 'twenty-something' market. We expect the combination of the Visor and the new Rio player to be attractive to business professionals as well."

"Diamond's Rio will be a great product for our new Visor family," said Ed Colligan, vice president of marketing and development for Handspring, Inc. "Diamond's expertise in delivering compelling consumer products combined with their wide brand recognition makes them an ideal development partner for us."

Pricing information for the new Rio player, named Rio X64, will be provided at a later date. Product availability is expected to be as soon as Q1 2000. A technology demonstration of the new Rio player will be available in Handspring's booth (No. 667) at Internet World, Oct. 6-8, in New York.

For more information on the Rio, visit www.diamondmm.com and www.rioport.com. For more on Handspring, Visor and the Springboard platform, visit www.handspring.com.

The Rio Brand

Diamond Multimedia revolutionized the music world with its October 1998 introduction of the Rio PMP300, a pager-sized device that allows for the portable playback of digital music from the Internet. Heralded as a break-through product in the media, the Rio PMP300 brought for the first time the term "MP3" into the mainstream and has spawned the development of third-party and shareware applications designed specifically for the device.

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 [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 Sites: www.diamondmm.com and www.RioPort.com Diamond e-commerce Sites: www.estore.diamondmm.com and

[e-mail] 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)

Note to Editors: 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.