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Diamond Multimedia Partners With S3 Incorporated to Deliver Performance Graphics Solution for Value-Sensitive Gamers.

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 1, 1999--

Diamond to Provide Company's First AGP 4X Solution Based on

Savage4 Architecture

Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in PC multimedia and Internet connectivity, today announced that the company plans to develop one of the PC market's first AGP 4X graphics accelerators based on S3's new Savage4 architecture.

The AGP 4X technology allows for the transfer of twice as many 3D textures versus previous generation AGP 2X implementations. Furthermore, Diamond's Savage4-based product will take advantage of S3 Texture Compression, or S3TC, for 3D graphics featuring larger, more realistic textures. Diamond's next-generation product is expected to provide uncompromised 2D and 3D graphics acceleration and digital video playback performance for the mainstream PC gaming and consumer markets at an engaging price point.

"Diamond is partnering with S3 to deliver a feature-rich graphics solution to PC consumers and OEMs," said Scott Vouri, vice president and general manager of core graphics at Diamond Multimedia. "Diamond plans to capitalize on its close and long-standing relationship with S3 as a key partner to bring performance 3D graphics to the mainstream PC market."

"Savage4's 4X AGP and S3TC will clearly give Diamond a competitive advantage in the market," said Rick Bergman, vice president of marketing for S3 Incorporated. "We anticipate that Diamond will be highly successful in both the OEM and retail markets with their upcoming Savage4-based product." With true 32-bit 3D rendering, complete DirectX 6 support, AGP 4X technology and full optimization for Intel Pentium III and AMD K7 processors, the horsepower to enhance the performance and intensify the realism of today's mainstream and gaming applications.

Winning 3D Graphics Features

Diamond Muring, stencil buffering, support for textures

unique hardware texture compression, S3TC, off Unreal Tournament, Quake3 Arena, Half Life, Anh-performance for memory-intensive, real-time 3D graphics on the PC because of its direct connection between the graphics subsystem and system memory.

Advanced Viexpected to include hardware accelerated DVD plt panel support in selected configurations, prodia and Internet connectivity, providing advance networking products. Diamond's common stock i How to Contact Diamond Multimedia

Tdquarters and Multimedia Division:

408-325-700 (France) +33-1-55381600 Korean Office (Seoul): +82-2-551-2700; Fax: +82-2-551-2710 Japanese Office (Toky-2262-9518; Fax: +852-2262-9555 Australian Off:523-110-1144; Fax: 523-110-0744 Product Supporupport (Fax), United States: 541-967-2401;

Europe (Germany) +49-8151-266-331;

Europe (UK): +44-1189-444445; (France) +33-1-55381601 Pre-sales Information: 1-800elations: 408-325-7476; 1-888-474-3463 (U.S. anfor historical information contained herein, the matters set forth in this press release, such as statements impact of competitive products and pricing and alternative technological advances, the timely and successfuime in Diamond Multimedia's SEC filings, including its most recent Forms 10-K and 10-Q.

Note to Editoedia Systems, Inc. Monster(R) is a registered trtrademark of their respective manufacturers. Th and requirements.
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Date:Feb 1, 1999
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