Diamond Multimedia Ships PC Industry's First USB Home Networking Product With Cross-platform Support.

VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 15, 1999--

HomeFree Phoneline USB Enables Resource Sharing Between

PC and Macintosh Computers and Easy Switching from Ethernet

to Home Network Protocols

Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in PC multimedia and Internet connectivity, today announced shipment of HomeFree(tm) Phoneline USB, the PC industry's first USB home networking product with cross-platform support. Diamond's HomeFree Phoneline USB product allows consumers to quickly install home networking hardware and begin sharing Internet access, peripherals and multi-player games between PC and Macintosh computers.

"Consumers don't need to open their computer cases to install this product," said Jim Cady, president of Diamond Multimedia's Communications Division. "If you can hook up an external modem, you can install HomeFree USB. Plug in the USB pin connector, plug in the phone cords, install the CD software, and you're off and running with simultaneous Internet access, gaming, printing and more - regardless of whether you have Macs or PCs."

How Consumers Win with Cross-Platform USB

The HomeFree Phoneline USB product provides PC and Macintosh users with a solution that is easy to install and works across multiple platforms. HomeFree Phoneline USB simply plugs into a computer's USB port and is automatically detected at start-up. The product CD then prompts the user to continue with installation. The connection permits sharing between Windows 95- and 98-based systems and iMac and Power Macintosh G3 computers. Now, for the first time, consumers can easily and affordably network a Macintosh with a Windows-based PC.

Switch between Office and Home Networks

Many business professionals often need access to home and office networks from a single laptop computer. As a result, HomeFree USB includes AlterNet(tm), a Diamond-designed network switching software that allows consumers to easily change a mobile computer's network profile. With the touch of a button, consumers can quickly switch their network profile between the Ethernet environment at work and their Diamond HomeFree home networking setup at home.

Pricing and Availability

At a $69.95 estimated retail price (ERP), HomeFree Phoneline USB is shipping now to major North American computer retailers and is available direct from Diamond's On-Line Store at www.estore.diamondmm.com

Share Files, Drives, Printers and More

Diamond's HomeFree Phoneline USB product features a Lite version of Miramar Systems' award-winning PC MACLAN software that enables PCs and Macintosh computers to share files, drives, printers and other peripherals.

"The growing number of multiple PC households, including cross-platform homes, is contributing to the rapid expansion of the home networking market," said Kim Scott, product manager at Miramar Systems. "Diamond's HomeFree Phoneline USB product, with PC MACLAN Lite, provides consumers with a versatile home networking solution for sharing resources between Windows 98 PCs and Macintosh computers."

Access the Internet with a Single Connection

The Diamond HomeFree Phoneline USB product also includes Deerfield.com's WinGate Home 3.02 Internet sharing software, enabling multiple users (up to six) to simultaneously access the Internet by using a single modem, phoneline and ISP (Internet Service Provider) account from a Windows-based PC.

"WinGate software provides consumers with an easy way to access the Internet," said Mike Deerfield, CEO of Deerfield.com. "The HomeFree Phoneline USB product leverages the capabilities of WinGate software by consolidating resources and providing Internet access that can be shared among multiple networked home computers."

Also included with the HomeFree Phoneline USB product are versions of Vicomsoft's SurfDoubler software for both Macintosh and for Windows that provides for the sharing of a single Internet connection between two computers, using a Macintosh computer as the Internet sharing PC.

"Consumers can enjoy a financial benefit in sharing a single Internet connection over a home network," said Brian Morris, CEO of Vicomsoft. "The inclusion of SurfDoubler with Diamond's HomeFree Phoneline USB home networking product provides a compelling solution for sharing high-speed Internet access in multi-computer households."

Standards-Based Home Networking

Featuring AMD's PCnet(TM)-Home networking controller, the HomeFree Phoneline USB product uses existing home phonelines to link multiple computers and is based upon the HomePNA (Home Phoneline Networking Alliance) network standard, which stems from Tut System's HomeRun* technology. AMD's PCnet-Home controller is the industry's first single chip solution that is based on the widely endorsed HomePNA specification and is the first HomePNA compliant product to receive Microsoft PC 98 certification. The HomeFree Phoneline USB product delivers fast throughput speeds of up to 1 Mbps at a range of up to 500 feet between each computer.

Windows and Macintosh System Requirements

The PC system requirements for Diamond's HomeFree Phoneline USB product include a built-in USB 1.0 port or USB 1.0 PCI add-in controller card and Microsoft Windows 98. The recommended PC system is a Pentium 100 MHz (or higher) with a built-in USB port. The Mac system requirements include an available USB port and Mac OS 8.1. The recommended Mac system is an iMac or Power Macintosh G3 computer running Mac OS 8.5.

About the Home Phoneline Networking Alliance

The Home Phoneline Networking Alliance (HomePNA) is an incorporated, non-profit association of industry-leading companies working together to help ensure adoption of a single, unified phoneline networking industry standard and rapidly bring to market a range of interoperable home networking solutions. Founded in June 1998, HomePNA has grown to include members spanning the networking, telecommunications, hardware, software and consumer electronics industries. For more information, including a list of member companies, please visit HomePNA's Web site at http://www.homepna.org.

About Diamond Multimedia

Diamond Multimedia is a leader in PC multimedia and Internet connectivity, providing advanced products that enable desktop computer users to create, access and experience compelling new media content from their PC's and through the Internet. Products include the Rio series of Internet audio appliances, the Stealth and Viper(R) series of video accelerators, the Monster series of 3D gaming accelerators, the Fire series of professional graphics accelerators, the Supra(R) series of modems, and the HomeFree line of home networking products. Diamond's common stock is traded on the NASDAQ under the symbol DIMD, and its web site address is www.diamondmm.com. The Company's Internet music portal site is at www.RioPort.com and its e-commerce sites at www.estore.diamondmm.com and eAuction.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 Sites: www.diamondmm.com, www.RioPort.com and www.TheDigitalDreamHome.com

Diamond e-commerce Sites: www.estore.diamondmm.com and eAuction.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] Latin America Office (Miami): 305-593-8777; 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: Europe (Germany) BBS at [phone] (to 28.8 Kbps) or [phone] (ISDN); Europe (UK) at [phone] (to 33.6 Kbps)

HomeFree, Monster 3D, Rio, Shotgun, SpeedStar and SupraSonic 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.