DIAMOND MULTIMEDIA INTRODUCES STEALTH 3D ACCELERATOR WITH FAST 2D GRAPHICS,
3D ANIMATION AND MPEG VIDEO PLAYBACK

DIAMOND'S NEXT GENERATION STEALTH PROVIDES ADVANCED PERFORMANCE FOR
MULTIMEDIA, GAMES AND BUSINESS APPLICATIONS ON THE PC

SANTA CLARA, Calif., April 1, 1996 - Today at the Computer Game Developers'
Conference, Diamond Multimedia Systems, Inc. (Nasdaq: DIMD) announced
Diamond Stealth 3D 2000, the first product in a new line of next
generation Stealth 3D multimedia accelerators that will deliver
high-performance 2D graphics as well as 3D animation and MPEG-1 digital
video playback acceleration for PCs running Microsoft's Windows 95,
Windows 3.1x, Windows NT 3.51 and DOS operating systems. Designed for
systems with a PCI bus, the new Stealth 3D 2000 accelerates a new realm of
computer applications featuring realistic 3D animation and video such as
multimedia applications and games. The modular design of the Stealth 3D
2000 will also allow for the affordable addition of a TV tuner option. An
OEM/VAR version of Stealth 3D 2000 will be available in April to Diamond
OEM customers and through its authorized distributors.

"The new Diamond Stealth 3D provides ultra high-performance 2D capabilities
as well as powerful 3D graphics and video acceleration," said Ken Wirt,
vice president of marketing, Diamond Multimedia. "Now PC users can take
advantage of the latest in immersive 3D animation and continue to improve
Stealth performance and reliability for their Windows acceleration and
business application needs."

"The market for 3D graphics is ready to take off," said Jon Peddie,
industry analyst and editor-in-chief of the PC Graphics Report, located in
Tiburon, Calif. "With the Stealth 3D, Diamond is in a position to provide
a solution that meets the growing demands of the mass market."

The Diamond Stealth 3D 2000 utilizes S3 Inc.'s ViRGE 64-bit DRAM graphics
and video accelerator chip, which is based on the company's new S3d
architecture. The ViRGE engine is an advanced single-chip solution for
interactive 3D rendering, 2D GUI and video acceleration with an integrated
RAMDAC and clock synthesizer.

"The S3d architecture's leading-edge 3D performance and feature set
together with Diamond's ability to provide optimized end-user solutions
will take computing to the next level of interactive gaming and powerful
business applications," said Neal Margulis, vice president of home and
advanced system products for S3. "Delivering the hot 3D performance and
superior 2D graphics and video acceleration, Diamond's Stealth 3D 2000 is
at the forefront of next-generation PC graphics."

HIGH-PERFORMANCE 2D GRAPHICS

The Diamond Stealth 3D 2000 features ultra-fast 2D graphics acceleration.
Using industry-standard benchmark tests, Diamond has shown that the
Stealth 3D consistently performs at same levels or better as much
higher-priced WRAM accelerators, such as the Matrox Millenium. The Stealth
3D, populated with 2MB of EDO DRAM, provides 256 colors at resolutions up
to 1600 x 1200 as well as true color, 16.7 million colors, at resolutions
as high as 800 x 600. The maximum supported refresh rate is 120 Hz.

High resolution and high color-depths are extremely important for PC users
running desktop publishing, document image processing and CAD applications
on large monitors. The 2D acceleration also improves the performance of
spreadsheet, presentation and other business application software.

POWERFUL 3D MULTIMEDIA ACCELERATION

Using S3's triangle-based polygon rendering engine, the Diamond Stealth 3D
2000 delivers numerous advanced 3D features. Those features include:
complex perspective corrected texture mapping that adds significant
realism and image quality to 3D objects; bi-linear filtering, MIP-mapping
and tri-linear MIP-mapping that eliminate the "blockiness" and visual
artifacts such as "sparkle" and "jaggies" commonly seen in software-only
3D games, providing for a smoother look-and-feel of objects; and alpha
blending, depth-cueing and fogging that deliver transparency effects for
realistic smoke, steam, fog, glass, water, plastic, and other objects.

Z-buffering capabilities are used to speed the removal of hidden surfaces
so that objects appear life-like, without compromising 3D performance. The
Stealth 3D 2000 is standard with 2MB of EDO DRAM. Memory that is not
accessed for the display buffer is available for Z-buffer and texture
mapping, which provides the ability to further accelerate 3D applications
at higher resolutions. The combination of the above 3D elements when used
in virtual reality applications, on-line 3D worlds, or games offers a
captivating computer experience that can help make people feel as though
they are immersed in a real-world environment.

SOFTWARE DEVELOPMENT SUPPORT

The Diamond Stealth 3D 2000 supports a wealth of today's existing DOS and
Windows games and software applications. Currently Diamond is partnering
with S3 to provide software companies with the tools they need to develop
interactive 3D applications designed to take advantage of the special 3D
features of the ViRGE technology on the Diamond Stealth 3D 2000. More than
fifty developers are currently evaluating the technology and many have
committed their support, including Asymetrix, Caligari Corporation, Domark
Software, GTE Interactive, Gremlin, Interplay Productions, Looking Glass,
New World Computing, Reality Bytes, Terminal Reality, and Psygnosis.

Once the Microsoft Direct3D APIs are completed for the Windows 95 operating
system, the market can expect to see even more games and applications that
take advantage of 3D acceleration features. Diamond plans to provide
Direct3D drivers to Stealth 3D 2000 customers following the final release
of Direct3D from Microsoft. Support for all other relevant Microsoft
DirectX APIs are planned for the Stealth 3D 2000 as well.

"The Diamond Stealth family of graphics subsystems has been known for its
ability to get great performance from a PC running Windows," said Eric
Engstrom, program manager for DirectX at Microsoft Corp. "By designing 3D
into the Stealth line, Diamond will further enhance the rich multimedia
capabilities of Windows 95 for increased interactivity in entertainment
and business applications."

"The graphics horsepower of the Stealth 3D really has the ability to pump
up the performance of our games," said Brian Fargo, CEO of Interplay.
"Interplay is known for designing cutting- edge games for the PC, while
Diamond is known for its high-performance multimedia accelerators. The
combination of Stealth 3D and Descent II will provide a totally awesome
gaming experience."

"Psygnosis is pleased to be partnering with a market leader like Diamond
Multimedia to bring its popular Sony PlayStation titles to the PC," said
Ian Heatherington, managing director of Psygnosis. "Titles such as the
highly acclaimed Destruction Derby should be as action packed on the PC as
their Sony PlayStation counterparts with the advanced graphics
capabilities of the Stealth 3D."

DIGITAL VIDEO PLAYBACK

The Diamond Stealth 3D 2000 features smooth, full-motion digital video
playback at 30 frames per second by off-loading several functions from the
host CPU. These functions include image scaling and color space
conversion. Users can scale images up to full-screen without compromising
image quality or playback speed. Drivers for Indeo, Cinepak and software
MPEG-1 are provided.

OPTIONAL TV TUNER

The Diamond DTV 100 TV tuner, enabling business and home television
applications including training, security, education and entertainment,
will be available as an upgrade option for the Diamond Stealth 3D 2000 for
$129. The DTV 1100 converts a broadcast video or cable signal into a live
TV picture on the PC screen and uses an ISA slot (for power only). Other
features include stereo audio in and out, closed captioning, video capture
and an intuitive software TV control resembling a standard "remote
control" for on-screen programming.

DIAMOND MULTIMEDIA

Diamond Multimedia designs, markets and supports high-performance PC and
Macintosh multimedia solutions for the home, business and professional
markets. Products include the Stealth, Diamond EDGE 3D and Viper series of
multimedia accelerators, the Fire GL series of professional 3D and CAD
accelerators, and the Supra series of fax/modems. Diamond also markets
ISDN adapters, sound cards, multimedia upgrade kits and digital video
editors. Headquartered in San Jose, CA, Diamond has sales, marketing and
technical facilities in Vancouver (Wash.), Tokyo, Starnberg (Germany),
Paris and Slough (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 National 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:

The Main Phone Number: 408-325-7000; Fax: 408-325-7070

Supra Communications Division Main Phone Number: 360-604-1400; Fax:
360-604-1401

Diamond SPEA Division Main Phone Number (Germany): +49-8151-2660

Product Support Voice: 408-325-7100; Supra: 541-967-2490

Product Support Fax: 408-325-7171; Supra: 541-967-2401; SPEA:
+49-8151-266150

Tech information line for Supra: 1-800-774-4965

For information on Diamond products: 1-800-468-5846; Supra: 1-800-727-8772

24-Hour Fax On Demand Service: 1-800-380-0030; Supra: 541-967-0072

America Online (Keyword: DIAMOND; Email: SUPRACORP2)

CompuServe (GO DIAMOND); Supra: (GO SUPRA); SPEA (GO SPEA)

Microsoft Network: Find DIAMOND

FTP site: ftp.diamondmm.com, or Supra: ftp.supra.com

Internet Web site: http://www.diamondmm.com or Supra: http://www.supra.com
or SPEA: http://www.spea.com

BBS numbers at 408-325-7080 (to 14.4 baud) or 408-325-7175 (to 28.8 baud)

Supra BBS: 541-967-2444

SPEA BBS at +49-8151-266241 (to 14.4 baud) or +49-8151-12921 (to 28.8 baud)
or +49-8151-78001 (ISDN)
 
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