Diamond Multimedia Partners With Electronics Boutique for Monster 3D II Pre-order Program; Electronics Boutique Kicks-Off Monster 3D II Pre-Order Program with Mailing to 40,000 Customers.

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 13, 1998-- Diamond Multimedia Systems, Inc. (NASDAQ:DIMD), a leader in the interactive multimedia acceleration market, today announced a pre-order program with Electronics Boutique for Diamond Multimedia's new Monster 3D II, a high-performance 8MB 3D game accelerator featuring the Voodoo2 chipset from 3Dfx Interactive.

Electronics Boutique's pre-order program allows customers to secure one of the industry's hottest products by purchasing the Monster 3D II in any of its 450 stores in the United States and twenty-five stores in Canada. Customers can pre-order the Monster 3D II card at any Electronic Boutique store in the United States or Canada with a ten dollar deposit. Internet users also have the ability to pre-purchase the card by going to Electronic Boutique's website, http://www.ebworld.com, and clicking on the Monster 3D II box. Customers that pre-purchase the Monster 3D II over the Internet will not be charged until the product ships.

Customers can visit Electronic Boutique's website for store locations and to sign-up for their newsletter to receive future e-mail notifications of special promotions and updates on the Monster 3D II card.

"Electronics Boutique is the largest mall-based retailer of computer software and interactive video games," said Chuck Buelow, director of channel sales for Diamond Multimedia. "Electronics Boutique's customers who purchase games want the best possible 3D experience on their PC and Monster 3D II delivers."

"3Dfx's Voodoo 2 technology is in high demand and Diamond has the reputation for delivering top-performing game accelerators, evident in the success of the Monster 3D which has been the number one selling 3D accelerator in retail for at least six months," said Jerry Madaio, buyer at Electronics Boutique. "Our Monster 3D II pre-order program announcement has already spurred a high volume of orders, and the Monster 3D II is fast becoming one of our best selling products."

Diamond's new Monster 3D II features the 3Dfx Voodoo2 chipset and a powerful 8MB memory design to deliver more than three times the 3D performance of the company's original Monster 3D, the top selling 3D accelerator at U.S. retail stores for the last six months, according to PC Data. Diamond also provides a MEGAMonster(TM) option that allows users to potentially double their system's 3D performance by using two Monster 3D II accelerators simultaneously. Monster 3D II, with a sizable software bundle including the Limited Edition Star Wars(R) Game Pack from Lucas Arts Entertainment Co. as well as Activision(R)'s Heavy Gear(TM) (full version), TombRaider(TM) II (special version) by Eidos Interactive(TM) and more, will begin shipping in March for an estimated retail price of $249.95. Current Monster owners can also take advantage of a special $50 rebate. For more information on Monster 3D II and the pre-order and rebate programs, visit Diamond Multimedia's website at http://www.diamondmm.com.

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 hard drive 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, and the Supra(R) series of modems. Diamond also markets DVD and video phone kits. 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:

Internet Web Site: http://www.diamondmm.com 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] Product Support (Voice), United States: 541/967-2450; Europe (Germany)

[phone]; Europe (UK)

[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 Investor Relations: 408/325-7476; 1-888/474-3463 (U.S. and Canada) 24-Hour Fax-On-Demand Service: 1-800/380-0030 FTP site:ftp.diamondmm.com BBS: 541/967-2444 (to 33.6 Kbps) or 408/383-0551 (ISDN); Europe (Germany) BBS at [phone] (to 28.8 Kbps) or [phone] (ISDN); Europe (UK) at [phone] (to 33.6 Kbps) -0-

Note to Editors: Monster 3D and Supra are either trademarks or registered trademarks of Diamond Multimedia Systems, Inc. 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 introduction are in the United States of 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.

Mary Medeiros, 408/325-7350

or

[e-mail]

Faiola Davis Public Relations 

Andrea Sausedo, 213/933-4959

[e-mail]