Diamond Multimedia to Showcase Rio PMP300 and www.RioPort.com at the 1999 New York Music & Internet Expo.

SAN JOSE, Calif.--(BUSINESS WIRE)--March 2, 1999--

Diamond to Offer Expo Attendees a Show Special on the

Purchase of Its Popular Rio PMP300

Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in PC multimedia and Internet connectivity, and its wholly owned subsidiary, RioPort.com, an Internet music and audio portal, today announced the company's participation in the 1999 New Music & Internet Expo and its sponsorship of the event. The event delivers an exciting forum for companies dedicated to building synergy between the music industry and new media companies. Thousands of music fans, consumers, music industry executives, Internet companies and music journalists are expected to attend.

Diamond Multimedia will showcase its popular Rio PMP300 portable Internet music player (booth No. 421 & No. 422) and its music and audio portal, http://www.RioPort.com, which is quickly gaining popularity among consumers as a one-stop resource for Internet music and audio content on the web.

Diamond Multimedia will offer a special $20 discount to all attendees who purchase the Rio PMP300 at the show, for a net price of just $179.95.

"From the introduction of the Rio PMP300 to the launch of RioPort.com, Diamond Multimedia has played a key role in the fusion of the music and technology industries," said Ken Comstock, general manager of consumer audio at Diamond. "The New York Music & Internet Expo offers us an exciting venue for further establishing our leadership in the Internet music category."

Ken Comstock will participate in an expo speaker panel on Sunday, March 7 at 12:45 p.m. Comprised of executives from leading music and Internet-related companies and analysts, the panel will discuss how technology advancements have impacted the music and Internet industries, what this means for these industries in the future, and how independent artists can take advantage of new technologies.

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 http://www.diamondmm.com. The Company's Internet music portal site is at http://www.RioPort.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 Site: http://www.diamondmm.com

and http://www.RioPort.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] Latin America Office (Miami): 305-593-8777; Fax: [phone] Mexico Office (Guadalajara):523-110-1144; 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(R) is a registered trademark of Monster Cable. Viper(R) 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. -0- Diamond Multimedia/RioPort.com New Yorker Hotel Grand Ballroom Booth No. 421 and No. 422