Diamond Multimedia Joins Digital Media Association; Diamond and Other Digital Media Leaders to Address Industry Issues.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 23, 1998--Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in interactive multimedia and PC entertainment, today announced that it has joined the Digital Media Association (DiMA).

Diamond Multimedia will unite with the efforts of leading organizations, such as Liquid Audio, a2b, TCI Music, SonicNet and others, to support the development and broad acceptance of innovative digital technologies, products and services that provide compelling value opportunities for both owners and consumers of audio and audiovisual content.

DiMA's goal is to address those issues that surround the development of innovative technologies. Issues include the protection of intellectual property rights and payment of fair and reasonable royalties associated with those rights, opposition to technical and legal barriers that inhibit innovation or adoption of new technologies, and promotion of products that enable consumer use of new industry developments, particularly on the Internet.

"By joining DiMA, Diamond will have the opportunity to coordinate its efforts with those of other industry leaders to promote the use and development of new technologies, enhancing the future of the industry and of consumer choice," said Ken Wirt, vice president of corporate marketing at Diamond Multimedia.

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.

About DiMA

DiMA was formed June 2, 1998 as a full-service trade association for companies that are developing and using digital technologies to perform, distribute and retail audio and audiovisual content over the Internet and through other new media outlets. DiMA's seven charter member companies are leaders in enabling on-line transmission and marketing of music and video content: a2b music, broadcast.com, CDNow, Enso Audio Imaging, Liquid Audio, RealNetworks, and TCI Music. Additional information can be found on DiMA's Web site at www.digmedia.org.

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]
System 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)

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Note to Editors: Monster 3D, Supra and HomeFree 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.