Mitsubishi Selects Diamond's Supraexpress 56 Modems.

VANCOUVER, Wash.--(BUSINESS WIRE)--Oct. 8, 1997--

-Diamond Multimedia's K56flex Modems Provide Mitsubishi PC Division

with Reliable, High-Speed Internet Connectivity-

Diamond Multimedia Systems Inc. (Nasdaq: DIMD), a leader in Internet multimedia acceleration, today announced its SupraExpress(TM) 56i Sp internal speakerphone modems will be shipping with select models of Mitsubishi's Apricot(TM) computers.

Mitsubishi Electric , a leading vendor of industry standard systems, designs and manufactures its line of personal computers in the United Kingdom. The Mitsubishi Apricot series with Diamond's SupraExpress 56i Sp modems delivers a complete multimedia solution to end-users and is now available through leading PC retail stores in Europe and Asia.

"Diamond's award-winning SupraExpress 56 modems are at the heart of our strategy to deliver free Internet access across our entire desktop product range," said Chris Buckham, Group Marketing Director at Mitsubishi Electric PC Division. "Our philosophy of `Computers for the Connected World' demands the reliable and leading-edge technology that Diamond is providing for us."

"Diamond Multimedia is committed to providing high-speed, full-featured modems to the PC market. This announcement demonstrates our ability to support the largest computer manufacturers with first class products for use in any geography," said Jim Cady, vice president and general manager for Diamond Multimedia's Communications Division. "Our SupraExpress 56 line of modems was designed from the ground up for optimal 56K connections, allowing us to deliver the latest communications technology to PC manufacturers worldwide."

Diamond SupraExpress 56 modems

Diamond Multimedia's award-winning line of SupraExpress 56 modems for both Windows and Macintosh platforms was built from the ground up for optimal 56K performance. SupraExpress 56 analog modems provide Internet access at speeds up to 56 Kbps and offer a simple, free software upgrade to the future ITU standard. Diamond's high- performance design is combined with a full-duplex speakerphone and feature-packed voicemail in the SupraExpress 56 Sp series. The SupraExpress 56 series of modems and the new Supra PC Card 56 incorporate Rockwell and Lucent's K56flex technology, which is supported by over 1,500 Internet Service Providers (ISPs) worldwide. To date, over one million K56flex ports have been deployed, with additional ports being deployed each week by several major remote access server suppliers.

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 Suprar series of modems. Diamond also markets DVD and video phone kits. Diamond's common stock is traded on the Nasdaq Stock Market under the symbol DIMD, and its web site address is www.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 Site: http://www.diamondmm.com

--European Internet Web Site: http://www.diamondmm.de

--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): +44-

1189-444400; (France) [phone]

--Korean Office (Seoul): [phone]; Fax: +82-2-551-

2710

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

8403

--ASEAN Office (Singapore): [phone]; Fax: [phone]

--Hong Kong Office: [phone]; Fax: [phone]

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

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

Communications: 541-967-2450; Europe (Germany) +49-

8151-266-330; Europe (UK) [phone]; ISDN Support

Center 408-325-7110; Fire GL Support

Center 408-325-7120; Fire GL Support (Germany): +49-8151-

266-336;

Fire GL Support (UK) [phone]; TDD/TTY Support 541-

967-2451

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

Communications: 541-967-2401;

Europe (Germany) [phone]; Europe (UK): +44-1189-

444445; (France) [phone]

--Pre-sales Information, Multimedia: 1-800-468-5846;

Communications: 1-800-727-8772

--Investor Relations: 408-325-7476; 1-888-474-3463 (U.S. and

Canada)

--24-Hour Fax-On-Demand Service, All Products: 1-800-380-

0030; Germany: [phone]; UK: [phone]

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

Europe: ftp.diamondmm.de

--BBS: 541-967-2444 (to 33.6 Kbps) or 408-383-0551 (ISDN);

Europe (Germany) BBS at [phone] (to 28.8 Kbps),

[phone] (to 56 Kbps) or [phone] (ISDN);

Europe (UK) at [phone] (to 33.6 Kbps)

or [phone] (to 56Kbps)

-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 launches 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.

CONTACT: Diamond Communications Division

Sarah Rades, 360/604-1515

Email: [e-mail]