Diamond Multimedia Systems, Inc. Announces Public Offering of Common Stock.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 21, 1995--Diamond Multimedia Systems, Inc. (Nasdaq: DIMD) today announced that it has completed an underwritten public offering of 3,500,000 shares of Common Stock.

Of such number, 3,150,000 shares were issued and sold by the Company and the remaining 350,000 shares were sold by certain of the Company's stockholders. The underwriters for the offering were Montgomery Securities, Alex. Brown & Sons Incorporated, Donaldson, Lufkin & Jenrette Securities Corporation and Cowen & Company.

In addition, the Selling Stockholders have granted to the underwriters an option to purchase up to an additional 525,000 shares of Common Stock solely to cover over-allotments.

Diamond Multimedia

Diamond Multimedia designs, manufactures and markets high-performance multimedia solutions for the PC, PowerPC and Macintosh markets. Products include Stealth graphics and multimedia accelerators, Edge 3D animation accelerators, and Supra fax/modems. Diamond also manufactures sound cards, audio/telephony subsystems, Internet kits and multimedia upgrade kits. Headquartered in San Jose, Calif., Diamond has marketing and technical support facilities in Vancouver (WA), Tokyo, Munich, Paris, and Slough (U.K.). Diamond's products are sold through regional, national and international distributors as well as to major computer retailers, mass merchants and OEMs worldwide. Diamond's common stock is traded on the Nasdaq National Market under the symbol DIMD.

CONTACT: Diamond Multimedia

Gary Filler, 408/325-7333 (Investors)

or

FRB San Francisco 

Ann Trunko (General Information)

Kevin Mirise (Analyst Contact)

415/986-1591