Diamond Multimedia ships its first 56,000 BPS capable modems; SupraExpress 56 with new K56flex Technology now available at retail.

VANCOUVER, Wash.--(BUSINESS WIRE)--March 24, 1997--Diamond Multimedia Systems, Inc., (Nasdaq: DIMD), a leader in Internet multimedia, today announced the SupraExpress(TM) 56 line of analog modems, designed to be capable of data download speeds of up to 56,000 bits per second (bps) and virtually effortless field upgradeability to the latest firmware revisions. The first members of this new family of 56,000 bps capable modems, the SupraExpress 56i and the SupraExpress 56e, are now shipping nationwide with estimated retail prices (ERP) of $169.95, and $189.95 respectively. Macintosh and speakerphone versions are expected to commence shipping before the end of March. SupraExpress 56 modems incorporate Rockwell and Lucent's new K56flex technology, which offers what Diamond Multimedia believes is among the highest transmission speeds available today over ordinary phone lines.

SupraExpress 56 modems will be available at Diamond Multimedia's North American retail partners, including Circuit City, CompUSA, Computer City, Fry's Electronics and Micro Center, as well as through Diamond Multimedia's commercial distribution partners including D&H Distributing, Gates/FA, Ingram Micro, SED, Synnex and Tech Data.

Diamond Multimedia demonstrated its SupraExpress 56e at CeBIT in Hannover, Germany (March 13 through 21) operating over the Deutsche Telekom public operating telephone network with reliable connections at 50,000 bps and higher. Deployment of the SupraExpress 56 line in Europe and Japan is expected soon.

"Internet-savvy consumers are demanding higher speeds," said James Cutburth, vice president of marketing for Diamond Multimedia's Communications Division. "With K56flex technology, end-users will be able to surf the Internet and download graphics, video and audio from the World Wide Web at up to almost twice the speed of 28,800 bps modems."

"Rockwell is committed to supporting Diamond Multimedia in meeting the demand for the latest in 56,000 bps connectivity products," said Armando Geday, vice president and general manager of Rockwell's Multimedia Communications Division. "We are pleased to be an integral part of Diamond's efforts to deliver a full range of 56,000 bps modems, feature sets and price points that best meet customers' individual needs."

Designed For 56,000 bps

Designed by Diamond Multimedia specifically to be easily upgradeable over the Internet with the newest firmware revisions incorporating the latest in K56flex algorithm improvements, the SupraExpress 56 modems include Flash ROM upgradeability, static RAM for accelerated processing, high-speed data line drivers for up to 230 Kbps through put and a new phone line interface for clear signal reception.

"We designed the SupraExpress 56 modem to give users easy, online access to the latest innovations in high-speed K56flex technology, which we believe is the emerging defacto 56,000 bps modem standard supported by most major industry players," said Jim Cady, vice president and general manager for Diamond Multimedia's Communications Division. "Our engineers worked closely with their counterparts at Rockwell's Multimedia Communications Division to design this modem from the ground up. Our twin objectives were to achieve easy online upgradeability and optimize K56flex performance, accommodating the complexity and speed of the 56,000 bps signal. And since Rockwell and Ascend have the majority of the modem connection ports in the Internet Service Provider market, we believe Diamond Multimedia's customers will have the best ISP support today and in the future. Unlike x2 technology, which is today limited to only 53 Kbps by FCC regulations for line voltage, Diamond Multimedia's SupraExpress 56 modems can operate at up to a full 56 Kbps without exceeding FCC voltage regulations."

"Ascend endorses Diamond Multimedia's rapid market launch of the SupraExpress 56 line of modems," said Bernie Schneider, vice president, strategic business development of Ascend Communications. "Ascend is working closely with Diamond Multimedia to ensure that their end-user consumers and our ISP customers can connect with the fastest data speeds available using K56flex technology."

Customer Satisfaction Program

The U.S. digital switched telephone network infrastructure is still undergoing development, roll out and improvement. Actual performance of 56 Kbps modems are expected to vary depending on telephone network conditions, including geographic location of a specific call, network quality and line noise at the time of the call, and the path or route assigned to the call. Since digital network technology may require new firmware releases and additional support over and above V.34 (33,600 bps) technology to achieve full performance, Diamond Multimedia has established a "Supra56 Satisfaction" program for those customers who experience difficulties due to their particular telephone network conditions and call routing.

For example, SupraExpress 56 modems will ship with "The Diamond Channel" client software based on new Internet "push" technology from BackWeb Technologies, Inc. which uses "background bandwidth" available on the Internet. "Diamond Multimedia's firmware engineers are continuously working to advance SupraExpress 56 modem performance under various network configurations," said Jeff Orr, product line manager for Diamond Multimedia's Communications Division. "By working with BackWeb and establishing The Diamond Channel, Diamond Multimedia is among the first of the major Internet multimedia suppliers to incorporate World Wide Web `push' technology into our products, giving our customers automatic downloading and easy installation of all our latest firmware innovations and algorithm improvements." The Diamond Channel client software is available for download from Diamond Multimedia's web site at www.diamondmm.com .

Customers can also participate in SupraExpress 56 customer support chat sessions, access a knowledge base of modem information and problem resolutions, and review answers to frequently asked questions (FAQs) at www.diamondmm.com . In addition, Diamond Multimedia offers world class technical support via telephone, electronic mail, fax-on-demand, BBS, TDD/TTY and FTP.

Diamond Multimedia's Line of SupraExpress 56 Modems

The new SupraExpress 56 line announced today consists of six models with a variety of feature sets, all of which include programmable firmware that allows for future upgradeability directly from the Internet and Diamond Multimedia's dial-up BBS as further development of the underlying technology occurs. -0-

                                                            Shipping
     Model        Configuration   Platform      ERP          Status

SupraExpress 56i    Internal         PC       $169.95       Shipping

SupraExpress 56e    External         PC       $189.95       Shipping

SupraExpress 56e    External        Mac       $189.95       Week of
                                                           March 24th

SupraExpress        Internal         PC       $189.95       Week of
  56i Sp            with                                   March 24th
                    speakerphone

SupraExpress        External         PC       $199.95         April
  56e Sp            with
                    speakerphone

SupraExpress        External        Mac       $199.95         April
  56e Sp            with
                    speakerphone

Each new SupraExpress 56 will ship with a CD-ROM that contains advanced fax, data and Internet access software. PC models feature Thought Communications' FaxTalk(TM) fax software and COMit(R) data software. The Macintosh modems include MicroPhone(R) LT data communications software and Diamond Multimedia's Supra Faxcilitate(TM) software (including Supra VoiceMail(TM) on selected models).

All of Diamond Multimedia's SupraExpress 56 PC modems will be packaged with VDONet software and a variety of Internet access software, including Microsoft's Internet Explorer(R) and Netcom's NetComplete(R) with Netscape's Navigator(R), as well as a BackWeb client and a trial version of Blizzard's Warcraft II for head-to-head modem gameplay.

The new SupraExpress 56 modems also feature V.80, the ITU's standard for video phone-ready modems. V.80 is the application interface that defines how video software runs on modems.

Diamond Multimedia plans to introduce international 56,000 bps capable modem versions during the balance of 1997 pending completion of various localized designs and individual country approvals.

Wide Industry Support

Diamond Multimedia is a charter member of the Open 56K Forum, an industry-wide coalition founded by twenty-seven leaders from key segments of the communications and computer industries, and dedicated to achieving widespread implementation of 56,000 bps modem technology. The chief aim of the Open 56K Forum is to gain support for a 56,000 bps modem protocol that will ensure interoperability across brands, providing an immediate end-to-end solution for faster data transmission. Diamond Multimedia intends to support the Open 56K Forum by providing field trial K56flex 56,000 bps modems to member ISPs.

Founding participants include industry leaders such as Ascend, BBN, Bay Networks, Cascade, Cisco, Compaq, Diamond Multimedia, Epoch Networks, Hewlett-Packard, Lucent, Motorola, PSINet, Rockwell, Shiva, Toshiba, U.S. West, UUNet and Xircom.

Initial field trials of the K56flex protocol are being conducted in cities that include Albany, NY; Herndon, VA; Boston, MA; Washington, D.C.; Palo Alto, CA; San Francisco, CA; Seattle, WA; Chicago, IL; Atlanta, GA; Norfolk, VA; Cincinnati, OH and Irvine, CA by ISPs that include BBN, Epoch Networks, PSINet and UUNet using Ascend WAN access concentrators incorporating K56flex technology.

Currently more than 600 Internet Service Providers (ISPs) including CompuServe, Netcom, Earthlink Network, and Prodigy have committed to offer K56flex to their customers, with additional companies expected to sign up every day.

Further information is available at http://www.open56k.org .

Diamond Multimedia

Diamond Multimedia is driving the Internet multimedia market by providing interactivity and connectivity 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 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 and ISDN adapters. Diamond also markets multimedia and video phone upgrade kits.

Headquartered in San Jose, CA, Diamond has sales, marketing and technical support facilities in Vancouver (Wash.), Singapore, Hong Kong, Seoul, Tokyo, Paris, Starnberg (Germany) and Winnersh (U.K.). Diamond's products are sold through local and international distributors as well as directly to major retailers, VARs and OEMs worldwide. Diamond's common stock is traded on the Nasdaq Stock Market under the symbol DIMD.

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 Visual Systems

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]

-- Support Information Line for Communications: 1-800-774-4965

-- Product Support (Voice), Visual Systems: 408-325-7100;

Communications: 541-967-2450; Europe (Germany) [phone];

Europe (UK) [phone]; ISDN Support Center 408-325-7110;

Fire GL Support Center 408-325-7120; TDD/TTY Support 541-967-2451

-- Product Support (Fax), Visual Systems: 408-325-7171;

Communications: 541-967-2401; Europe (Germany) [phone];

Europe (UK): [phone]; (France) [phone]

-- Pre-sales Information, Visual Systems: 1-800-468-5846;

Communications: 1-800-727-8772

-- Investor Relations: 408-325-7476; Fax-On-Demand: 1-800-346-3329;

International Fax-On-Demand: 201-433-1778

-- 24-Hour Fax-On-Demand Service, Visual Systems: 1-800-380-0030;

Communications: 541-967-0072

-- FTP sites: ftp.diamondmm.com; or Supra: ftp.supra.com

BBS for Visual Systems 408-325-7080 (to 14.4 Kbps) or 408-

325-7175 (to 28.8 Kbps) or 408-383-0551 (ISDN); Communications

BBS: 541-967-2444; Europe (Germany) BBS at [phone]

(to 28.8 Kbps) or [phone] (ISDN); Europe (UK)

at [phone]

-0-

Monster 3D and Supra are either trademarks or registered trademarks of Diamond Multimedia Systems, Inc. All other trademarks referenced are the service mark, trademark or registered trademark of their respective manufacturers. This announcement relates to products whose launch are in the United States of America. The product names 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. Furthermore, the SupraExpress 56 line of high-speed modems are designed to be capable of 56,000 bps data download speeds. Since the technology incorporated in K56flex-based modems is new and subject to future development and improvement, SupraExpress 56 modems may need firmware upgrades, planned to be available on-line from Diamond Multimedia BBS and Web site services, to achieve full connectivity potential.

CONTACT: Diamond Multimedia

Communications Division

Tamara Hanna, 360/604-1469

[e-mail]

or

Faiola Davis Public Relations

Norma Velvikis/Sara Faiola, 213/933-4959

[e-mail]