Diamond Multimedia Reveals New Monster Fusion 2D/3D Gaming Accelerator Featuring 3Dfx's Voodoo Banshee Technology.

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 26, 1998--

Monster Fusion Delivers Integrated Multimedia Functionality and Broad PC Gaming API Support for Casual Gamers and PC Users

Diamond Multimedia Systems, Inc. (NASDAQ:DIMD), a leader in interactive multimedia acceleration, today announced the company's first fully-integrated Monster-brand 2D and 3D graphics accelerator -- Monster Fusion. Now, PC users and gamers looking for a great 3D game accelerator and fast desktop productivity performance can get both of their needs met with a single graphics board at an attractive price point.

Powered by 3Dfx Interactive's Voodoo Banshee processor and 16MB of synchronous RAM, Diamond's new Monster Fusion fuses exceptional 3D gaming acceleration and blistering 2D speed on a single card with support for the most popular PC gaming APIs, including Glide, Open GL and Direct3D(R) under DirectX 6.0. Available in PCI (SDRAM) and AGP (SGRAM) versions, Diamond's Monster Fusion comes bundled with popular 3D games including a full version of Motocross Madness(TM) by Microsoft for U.S. estimated retail prices (ERP) of $149.95 for the PCI version and $159.95 for the AGP version.

"With Monster Fusion, Diamond Multimedia combines the power of 3D and 2D to deliver a single solution with compelling performance for today's consumer visual computing needs," said Scott Vouri, vice president and general manager for Diamond's core graphics business unit. "Now that the PC has become the center of entertainment and work in the home, we believe that Monster Fusion offers an enticing solution for consumers who want both speed and special effects."

Exceptional 2D Speed

Diamond's Monster Fusion, utilizing 3Dfx's Voodoo Banshee 2D/3D single-chip solution, features 128-bit processing power and 16MB synchronous memory for state-of-the-art 2D acceleration.

Coupled with a 250 MHz RAMDAC, the Monster Fusion produces rapid-fire graphics displays with tremendously fast refresh rates and ultra-high resolutions up to 1920 x 1440 with razor sharp detail and crystal clear imaging allowing users to navigate through complex business software and spreadsheets and also engage in great gameplay. Full GDI hardware acceleration (Microsoft's graphics device interface) allows Windows-based applications to run effortlessly, with minimal burden on the computer's CPU to process commands. For added video functionality, the Monster Fusion is also compatible with video playback for AVI, MPEG-1 and MPEG-2.

"We're very excited that Diamond will feature Voodoo Banshee with its first Monster-brand 2D/3D accelerator," said Greg Ballard, president and CEO of 3Dfx Interactive. "Monster Fusion brings our technology into the homes of PC users who might not necessarily buy a 3D-only game accelerator, but have always wanted to enjoy 3Dfx-accelerated games. We feel Monster Fusion is well-positioned to be one of the hottest products in the PC gaming hardware market this year."

Voodoo-Quality 3D Acceleration

As part of the critically-acclaimed Monster-brand, Diamond's Monster Fusion delivers compelling functionality for 3D intensive PC game environments. Diamond's new accelerator is capable of achieving rendering rates of more than 60 frames-per-second (fps) without slowing down overall system performance. In addition, Monster Fusion performs all major 3D processing functions in hardware, including real-time bump-mapping, and provides Z-buffer support for resolutions up to 1600 x 1200 in 16-bit color.

For PC gamers who want to play all the most popular PC games, from Unreal(TM) to Quake II(TM), without the worry of incompatibility, Diamond's Monster Fusion is fully optimized to handle titles developed with 3Dfx's Glide, Silicon Graphics' OpenGL ICD and Microsoft's Direct3D under DirectX 6.0 APIs. In addition, Monster Fusion works with PCs running under the Windows 95/98 and Windows NT operating systems.

Pre-Order Ultimate Gaming Solution for Under $200

Beginning September 1st, Diamond Multimedia is offering a monstrous deal to pre-order customers at Babbages Etc., CompUSA and Electronics Boutique. For just $199.95, consumers can pre-order a powerful gaming combination including Diamond's Monster Fusion 2D/3D gaming accelerator and Diamond's newest audio accelerator, the Monster Sound MX300 (also announced today), resulting in up to a $60 savings. Products can also be pre-ordered separately -- the Monster Fusion is available at a U.S. ERP of $149.95 (PCI) or $159.95 (AGP) and the Monster Sound MX300 at a U.S. ERP of $99.95.

Details on Diamond's Monster Sound MX300 audio accelerator and Diamond's Monster Fusion graphics accelerator pre-order programs are available on-line at Babbages Etc. (www.gamelord.com), CompUSA (www.compusa.com), Electronics Boutique (www.ebworld.com) or through Diamond (www.diamondmm.com).

Customers who want to learn more about Diamond's selection of Monster-brand gaming accelerators, including the new Monster Fusion, can log onto the Diamond Underground, the company's dedicated PC gaming Internet site at www.diamondmm.com/underground.

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]
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)

-0-

Note to Editors: 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(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. No other offers, promotions or rebates may be used with the Monster Fusion/Monster Sound MX300 pre-order programs.

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
               Mary Medeiros, 408/325-7350
                [e-mail]
               Dawn Tappy, 408/325-7349
                [e-mail]
               http://www.diamondmm.com
                       or
               Faiola Davis Public Relations
               Andrea Sausedo/Lana Rushing, 323/933-4959
                [e-mail]