Diamond Multimedia Ships New Stealth II G460 Graphics Accelerator Featuring The Intel740 Processor And 8MB Memory for Under $100.

SAN JOSE, Calif.--(BUSINESS WIRE)--May 5, 1998--

New Stealth II G460 Delivers 3D Performance Up To Three Times

Faster Than Other 8MB AGP Boards

Diamond Multimedia Systems, Inc. (NASDAQ:DIMD), a leader in interactive multimedia acceleration, today announced the availability of the Stealth II G460, an Accelerated Graphics Port (AGP) 2X graphics accelerator.

Featuring 8MB SDRAM and the Intel740(TM) AGP processor, the Diamond Stealth II G460 delivers explosive 2D/3D graphics and video performance, up to three times faster than other 8MB AGP accelerators, to Pentium(R) II-based PCs. The Stealth II G460, including a high-quality 3D software offering, is now available through the company's worldwide network of distributors, systems integrators and retail stores at an estimated retail price of $129.95 and a special introductory, limited time $30 mail-in rebate for an effective price of $99.95.

"Diamond's goal for the Stealth II G460 is to provide advanced 3D and 2D graphics to the mainstream PC consumer at an affordable price," said Scott Vouri, vice president and general manager of the core graphics business unit at Diamond Multimedia. "With the combination of Diamond's engineering expertise and Intel's new graphics technology, today's PC consumers will get a top-quality solution that can handle the latest power-hungry games and 3D business applications."

The Stealth II G460 graphics subsystem incorporates powerful 3D processing, high-quality 2D acceleration and advanced MPEG-1 video playback for PCs running with the Windows(R) 95/98 and Windows NT 4.0 platforms. With Diamond's optimized drivers and advanced hardware design, the Stealth II G460 is capable of performing faster than other Intel740-based graphics accelerator boards currently on the market. Visit Diamond Multimedia's website at http://www.diamondmm.com/products/benchmarks/bench-stealth2-g460.html for competitive benchmarks featuring Diamond's performance-optimized drivers.

Powerful 3D, 2D and Video

Diamond's Stealth II G460, featuring the Intel740 graphics controller, is a high-performance graphics accelerator for PC users who expect visually accurate 3D for today's hottest business and gaming software. The Stealth II G460 is a complete AGP 2X accelerator that uses Intel's robust "HyperPipelined 3D" feature set: Precise Pixel Interpolation for outstanding visual effects, Parallel Data Processing for more efficient use of the graphics pipeline and Direct Memory Execution for fast storage and execution of large 3D textures in system memory. Diamond's Stealth II G460 features true AGP 2X support for today's wealth of texture-rich PC games and business applications written to DirectX 5.0, including Direct 3D and OpenGL (Windows NT) APIs (application programming interfaces).

Diamond's Stealth II G460 features a robust set of 3D functions, including bilinear and trilinear filtering, MIP mapping, edge anti-aliasing, flat and Gouraud shading, perspective correction and Z-buffering for extraordinarily rich, detailed 3D imaging. The Stealth II G460, equipped with a 203 MHz DAC, supports resolutions as high as 1600x1200 and true color resolutions up to 1152x864 to deliver blazing 2D speed and vibrant colors for desktop publishing and general business software. For the multimedia enthusiast, Diamond's Stealth II G460 in conjunction with the Diamond DTV 2000 TV tuner, can provide scaleable, full-screen TV and video capture on the PC.

Stealth II G460 Includes Serious 3D Business Software

Diamond's Stealth II G460 features an impressive combination of the latest 3D business software and games in the U.S. retail configuration, including Fremont(TM) SE, a 3D visual data analysis and communication tool by Portola Dimensional Systems; WorldView(TM) Professional, a 3D animation package for PowerPoint by Intervista; Incoming, a powerful 3D game by Rage Software (a full 3D AGP version); MGI's PhotoSuite SE; Adobe(R) Acrobat(R) Reader; BackWeb Software and Internet Explorer. The Stealth II G460 bulk products shipping to distributors, key OEMs and systems integrators include the Fremont(TM) SE tool, Adobe(R) Acrobat(R) Reader; BackWeb Software and Internet Explorer. In addition, the Stealth II G460 will include Diamond Multimedia's popular InControl Tools desktop utility software for Windows 95 and Windows NT, which includes performance bar setting, gamma correction and the ability for users to customize their desktop (e.g., resolutions, refresh rates and color depths) on the fly -- without rebooting.

"Diamond's impressive software bundle with the Stealth II G460, including start-of-the art business software, makes it the ideal graphics solution for the demanding PC business consumer," said Tony Parisi, CEO of Intervista Software, Inc. "Intervista's WorldView Professional allows PowerPoint presentations to come alive with media-rich interactive 3D content."

"Diamond Multimedia has established itself as a leader in the 3D graphics market by providing high quality hardware with a cutting-edge software bundle at a very compelling price," said Philip J. Bernosky, vice president of marketing at Portola Dimensional Systems. "Portola's Fremont data visualization software makes it easy for PC users to extract valuable information from data sources such as Excel spreadsheets and databases in easy-to-follow, visually compelling 3D."

Diamond Multimedia Systems, Inc.

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.

Visit Diamond Multimedia at Computer Game Developer's Conference, Booth No. 1513.

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] 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]; 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); 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. Monster(R) is a registered trademark of Monster Cable. Viper(R) is a registered trademark of Directed Electronics, Inc., Used under License. WorldView is a trademark of Intervista Software, Inc. 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.

Mary Medeiros, 408/325-7350

[e-mail]

or

Faiola Davis Public Relations 

Andrea Sausedo, 213/933-4959

[e-mail]