Diamond Multimedia to Drive Next Generation 3D Audio Market with New PCI-Based Multimedia ASIC.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 11, 1996--Diamond Multimedia Systems, Inc. (Nasdaq: DIMD) today announced that it has developed its first multimedia audio processor, Freedom 5600, for Microsoft DirectSound and DirectSound 3D applications running on the Windows 95 operating system.

Designed to provide an immersive 3D audio experience, Freedom 5600 will be an integral component of next generation audio solutions from Diamond Multimedia planned for the first quarter of 1997. The new Freedom 5600 will be unveiled at Fall Comdex in Diamond's booth No. L882.

"With the proliferation of PCI-bus computers and the popularity of Microsoft's DirectX APIs, Diamond Multimedia recognized an opportunity to become a leader in next-generation, interactive 3D audio for the PC," said Bill Schroeder, president and CEO of Diamond Multimedia Systems.

"Through our investment over the past two years in a top-tier audio engineering team and our expertise in delivering cutting-edge PC technology, we are able to develop advanced solutions that have been unavailable until now."

Diamond's Freedom 5600 will allow computer game and entertainment developers to fully utilize Microsoft's DirectSound and DirectSound 3D APIs for multi-stream audio processing. Current sound technology is limited to ISA-based, single-stream audio. Freedom 5600 can support up to 24 independent audio streams without incurring any significant CPU overhead.

The design of Freedom 5600 facilitates the integration of DSP and CODEC technologies to provide interactive 3D positional sound for headphone, dual- and quad-speaker output.

"Until now, audio technology provided limited functions for computer game and application developers," said Paul Nahi, director of marketing. "With Freedom 5600 and the new Microsoft sound APIs, Diamond is paving the way for the next generation of PC audio."

"The move to PCI-bus computer systems raises the bar on the level of technology that subsystem manufacturers are able to provide, " said Mike Feibus, principal analyst at Mercury Research, Inc., in Scottsdale, Ariz. "We can expect hardware vendors, such as Diamond Multimedia, to leverage this growing market with advanced PCI-based audio products in 1997."

Diamond's Freedom 5600 is expected to be one of the first Windows 95, Plug and Play, PCI-bus enabled solutions on the market. Diamond Multimedia plans to incorporate Freedom 5600 into a family of products along with Analog Devices' DSP and audio CODEC components in the first quarter of 1997.

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.

Products include the Stealth and Monster 3D series of media accelerators, the Fire GL series of professional 3D and CAD accelerators, and the Supra series of modems and NetCommander ISDN adapters. Diamond also markets sound cards and multimedia and Internet upgrade kits.

Headquartered in San Jose, CA, Diamond has sales, marketing and technical facilities in Vancouver (Wash.), Singapore, Seoul, Tokyo, Starnberg (Germany), Clichy (France) and Winnersh (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 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 Division (Seoul): [phone]; Fax: [phone];

--Japanese Office (Tokyo): [phone]; Fax: [phone];

--Asia-Pacific Sales and Support (Singapore): [phone]; Fax: [phone];

--Support Information Line for Communications: 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;

--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: 800/468-5846; Communications: 800/727-8772;

--Investor Relations: 408/325-7476; Fax-On-Demand: 800/346-3329; International Fax-On-Demand: 201/433-1778;

--24-Hour Fax-On-Demand Service, Visual Systems: 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-

Note to Editors: Monster 3D, NetCommander 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. The statements made herein regarding Freedom 5600-based products are forward looking statements and actual results could differ materially due to the shortage of FAB capacity, delays in the software development process and availability of components from outside vendors. 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.

CONTACT: Diamond Multimedia Systems, Inc.

Joan Huang, 408/325-7236

[e-mail]

or

Faiola Davis Public Relations 

Andrea Sausedo or Heidi Davis, 213/933-4959

[e-mail]