Diamond Multimedia Enters Motherboard Market With the Introduction of Two New Micronics System Boards.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 1, 1998--Diamond Multimedia Systems, Inc. (NASDAQ:DIMD), a leader in interactive multimedia acceleration, announced today the company's first Pentium II-based system boards specifically targeted to the sub-$1000 PC market with its premiere offerings, the Micronics C300 and C400.

The introduction of the Micronics C300 and C400 system boards are the first offerings from Diamond's new systems business unit resulting from the acquisition of Micronics Computers, Inc. by Diamond Multimedia.

"We are excited to announce the introduction of Diamond's Micronics brand of system boards, which reflect the quality standards consumers world-wide have come to expect from us," said David Watkins, vice president and general manager of the Multimedia Division at Diamond Multimedia. "This is the first step in a series of soon to be announced system boards that will offer consumers a variety of upgrade and configuration options."

Micronics C300

The Micronics C300 is a single Pentium(R) II and Celeron desktop solution based on the Intel 440LX AGPset. Features include two ISA, five PCI, (one is a shared ISA/PCI slot), and one AGP slot, increasing the end-users flexibility for add-on's in a variety of configurations. Other features include 66MHz SDRAM, EDO and ECC memory up to 384MB and Wake-On-LAN, which provides a method to access a local-area or a wide-area network with the ability to remotely turn on desktop PCs. Optional enhancements include Microprocessor System Hardware Monitor support with CPU and chassis fan speed monitoring.

Micronics C400

Utilizing the Intel 440BX AGPset, the Micronics C400 is an ATX solution capable of processor acceleration up to 450 MHz. The C400 features PC-100 SDRAM support and EDO memory up to 768MB, Wake-On-LAN, Ultra DMA/33 IDE hard drive protocol (up to 33 Mbytes/sec. transfer rate) and support for both 66MHz and 100MHz front side bus speeds. Features include two ISA slots, five PCI slots (one is a shared ISA/PCI slot), and one AGP slot for added configuration versatility. The Micronics C400 also offers an optional Microprocessor System Hardware Monitoring device as well as fan speed sensors for the chassis and CPU.

"The Micronics tradition of providing advanced system board solutions to system integrators, distributors and VARs continues and is enhanced by Diamond's channel affiliations," said Bill Crouch, vice president and general manager of Diamond Multimedia's Systems Business Unit. "The Micronics C300 and C400 system boards are solutions targeted at computers designed to satisfy growing demands for affordability, flexibility and high-performance in their desktop computers."

Pricing and Availability

Diamond Multimedia's Micronics C400 is now shipping to system integrators, VARs, OEMs and retail outlets at a U.S. estimated retail price (ERP) of $139.00. The Micronics C300 is scheduled to ship in mid-September at a U.S. ERP of $109.00.

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 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: -0-

Internet Web Site:  http://www.diamondmm.com
Diamond Multimedia's Headquarters and Multimedia Division:
   408-325-7000; Fax:  [phone]
Systems 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:  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:  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)
-0-

Monster 3D, Supra and HomeFree are either trademarks or registered trademarks of Diamond Multimedia Systems, Inc. Monster is a registered trademark of Monster Cable. Viper 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.
              Alicia Lowe/Mary Medeiros, 510/651-2300 or 408/325-7350
              [e-mail] /[e-mail]
                         OR
              Greg Wilson, 510/651-2300