Diamond Multimedia Debuts Supra Video Phone Kit for Mainstream PC Users; Diamond's Desktop Video Phone Kit to Be Shown at Comdex; Gives Users an Affordable Video Conferencing Package for Use Over Plain Old Telephone Lines and the Internet.

VANCOUVER, Wash.--(BUSINESS WIRE)--Nov. 12, 1996--Diamond Multimedia Systems, Inc., (NASDAQ: DIMD), a leader in the desktop multimedia market, today announced the Supra Video Phone Kit 3000, the company's first complete desktop video conferencing package for mainstream PC users.(a)

The Supra Video Phone Kit contains all components necessary for an affordable system for both point-to-point (i.e., modem-to-modem) and Internet desktop video conferencing at an estimated retail price of only $399. Expected to be available in December at retail outlets nationwide, the Supra Video Phone Kit contains a SupraExpress 33,600 bps internal modem, video capture card, color camera with microphone, VDOnet video conferencing software, cables and a comprehensive installation guide.

"The market for desktop video conferencing is expected to start taking off in the fourth quarter of this year and continue into 1997," said James Cutburth, vice president of marketing for Diamond Multimedia's Communications Division. "The new H.324 standard eases the interoperability issues between different video conferencing systems, enabling users to have face-to-face communications, anywhere in the world, at a very affordable cost."

Diamond has extensively tested its video phone kit to ensure interoperability with other H.324 solutions from companies such as Intel, Smith Micro and PictureTel. For a Windows 95 user with a Pentium 100 processor or above, the Supra Video Phone Kit delivers video at up to 15 frames per second over a 33,600 bps modem.

Supra Video Phone Kit Components

SupraExpress 336i Modem

The SupraExpress 336i modem is a true Windows 95-certified Plug and Play internal modem that is simple to install and integrate seamlessly into a desktop system. Featuring V.80, the application interface that supports H.324, this modem is video phone-ready right out of the box. The SupraExpress 336i delivers transmission speeds up to 33,600 bps (the fastest modem speed currently shipping).

Video Capture Card

The Diamond Crunch It 1001 captures video for video phone calls, as well as to disk for editing and playback. The Crunch It 1001 connects to the camera with a built-in microphone included in the kit, and additionally connects to any composite or S-VHS camcorder or VCR. It supports standard resolutions for video conferencing, including CIF, QCIF, and SQCIF, and captures up to 30 frames per second.

VDOPhone Software Application

The video conferencing capability of the Supra Video Phone Kit is powered by VDOnet's award-winning VDOPhone software, which is the first video conferencing product to provide both standard H.324 and Internet video phone capabilities. VDO phone is designed to work with Windows 95 and video conferencing enabled (V.80) modems, such as the Diamond SupraExpress 33.6 and the Diamond SupraSonic 33.6.

VDOnet Corporation (HTTP://WWW.VDO.NET) is a leading provider of Internet video technology. It is a private company, founded in 1995. In addition to its existing backers, VDOnet recently announced investments by U.S. West Interactive and Microsoft Corporation.

Color Camera

The camera included with the Supra Video Phone Kit provides easily accessible controls for focus, contrast and white balance, and comes with a convenient built-in microphone. The camera installs easily, connecting with a single cable that transmits video, audio and power. It comes with a portable base that can mount on a monitor or any flat surface, allowing the camera to easily focus on different subjects.

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 GL series of professional 3D and CAD accelerators, and the Supra series of modems and NetCommander ISDN adapters. Diamond also markets sound cards and multimedia and Internet upgrade kits.

Headquartered in San Jose, Calif., Diamond has sales, marketing and technical facilities in Vancouver (Wash.), Singapore, Seoul, Tokyo, Starnberg (Germany), Clichy (France) and Winnersh (U.K.). Diamond's products are sold through regional, national and international distributors as well as to major computer retailers, mass merchants and OEMs worldwide. Diamond's common stock is traded on the Nasdaq Stock Market under the symbol DIMD.

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] Japanese Office (Tokyo): [phone]; Fax: [phone] Asia-Pacific Sales and Support (Singapore): [phone]; Fax: [phone] Support Information Line for Communications: 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: 800/468-5846; Communications: 800/727-8772 Investor Relations: 408/325-7476; Fax-On-Demand: 800/346-3329; International Fax-On-Demand: 201/433-1778 24-Hour Fax-On-Demand Service, Visual Systems: 800/380-0030; Communications: 541/967-0072 America Online (Keyword: DIAMOND; Email: SUPRACORP2) CompuServe: Visual Systems: (GO DIAMOND); Communications: (GO SUPRA); Europe: (GO SPEA) 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]-

(a) requires Windows95 and minimum 100MHz Pentium processor with a minimum of 8MB of main memory (RAM)

Note to Editors: Monster 3D, NetCommander 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.

The above release contains forward looking information regarding future software and hardware technologies which may not materially be available due to final technology, market acceptance of the new technology, timely receipt of adequate allocation of cameras, capture cards, modems and other required components.

CONTACT: Diamond Multimedia

Tamara Hanna, 360/604-1460

[e-mail]

or

Faiola Davis Public Relations

Norma Velvikis/Michael Wigert, 213/933-4959

[e-mail]