S3 Appoints Chong-Moon Lee to Position of Chairman Emeritus.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 29, 1999--

Following a unanimous Board of Directors vote, S3(R) Incorporated (Nasdaq:SIII) announced today that it has named Chong-Moon Lee to the position of Chairman Emeritus of S3 Incorporated.

The founder and Chairman Emeritus of Diamond Multimedia Systems, Inc. as well as the founder of AmBex Venture Group, LLC., Mr. Lee's wealth of experience and leadership will help enable S3 to successfully leverage the assets acquired from Diamond Multimedia.

"Mr. Lee will add substantial insight and contributions relative to the direction in which we'd like to take the company," said Ken Potashner, Chief Executive Officer for S3 Incorporated. "We welcome him to the company and we look forward to his involvement and leadership."

"I am extremely honored to be asked to fill this position and to be a part of the new company," said Chong-Moon Lee. "This is a great fit for both companies and I will do whatever I can to help S3 move forward."

Chong-Moon Lee

Mr. Lee founded Diamond Computer Systems, Inc. in 1982 and served as both Chairman and CEO of Diamond Multimedia until the end of 1994. Mr Lee oversaw the company's achievement of ranking No. 1 in revenue and market share for PC graphics accelerators, as well as being ranked 17th fastest growing privately held American company by Inc. business magazine and 8th fastest growing Silicon Valley company by the San Jose Business Journal in 1993. Mr. Lee served as the Chairman Emeritus of Diamond Multimedia prior to the merger and has also started another high technology venture company under the name of AmBex Venture Group, LLC. Mr. Lee's new challenge is to develop the best technology in IT industry with the America's best team, as the name AmBex indicates.

Mr. Lee is a Consulting Professor at the Asia Pacific Research Center of Stanford University in California and is also currently serving as Vice Chairman of the US-PECC (United States National Committee for Pacific Economic Cooperation Council), for which Mr. Lee took a pioneering role in organizing the inaugural US and Asia/Pacific Information Technology Summit as Chairman of the Organizing Committee. Mr. Lee holds an Honorary Doctorate of Economics and Public Service from John F. Kennedy University and an Honorary Doctorate of Engineering from the University of Seoul, as well as a MBA equivalent from Korea University in Seoul, Korea, a M.S. in Library Science form George Peabody College at Vanderbilt University, Nashville, Tenn., and a L.L.B. degree from the law school of Chung Ang University, Seoul.

About S3 Incorporated

Building on its proven technology expertise, established worldwide distribution channels, strong brand recognition and strategic partnerships, S3 is committed to delivering targeted products for the Personal Computer, Communications and Consumer/Internet Appliance markets.

Except for historical information contained herein, the matters set forth in this press release, such as statements as to expected success in new, high-growth markets and the ability to play a leading role in the evolving PC and consumer device market, are forward-looking statements that are subject to risk and uncertainties, including the satisfaction of certain conditions to the merger, the impact of competitive products and pricing and of alternative technological advances, the ability of the new executives to work together with existing management and employees, design, competitive product and other factors that may affect current and potential customers' decisions to use the company's products, and other risks detailed from time to time in S3 and Diamond's SEC reports and in the Joint Proxy Statement/Prospectus dated August 16, 1999 of S3 and Diamond Multimedia. S3 is a registered trademark of S3 Incorporated. The S3 corporate logo is a trademark of S3 Incorporated. Other marks referenced herein are the property of their respective owners.