DIAMOND SHIPS MICROSOFT INTERNET EXPLORER V2.0 WITH COMMUNICATIONS AND
VISUALIZATION PRODUCTS

STEALTH64 VIDEO 2001 SERIES MULTIMEDIA ACCELERATORS SHIPS WITH INTERNET
EXPLORER

SAN JOSE, Calif., March 26, 1996 -- Diamond Multimedia (Nasdaq: DIMD), a
leader in multimedia communications and visualization products, today
announced its agreement with Microsoft Corp. to bundle Microsoft Internet
Explorer v.2.0 with selected Diamond multimedia accelerators, modems and
ISDN products. Internet Explorer is an easy-to-use, full featured web
browser designed for the Microsoft Windows 95 operating system that offers
a simple interface and rich multimedia features for browsing the
Internet.

Diamond currently ships Internet Explorer with its Stealth64 Video 2001
series multimedia accelerators, and expects to with its Supra NetCommander
ISDN this summer. The company also plans to include Internet Explorer in
several of its product offerings in the coming year.

"Diamond provides software that takes maximum advantage of the capabilities
of its hardware products," said Paul Nahi, Diamond's director of
marketing. "Internet Explorer is a great multimedia tool for surfing the
web, and Diamond is committed to offering top-notch multimedia and
Internet solutions. The products make an ideal combination for end
users."

"We are pleased that Diamond, a leading manufacturer of multimedia
products, is committed to shipping Internet Explorer," said Russ
Stockdale, Group Manager Internet Platform and Tools Division, Microsoft
Corporation. "Diamond's hardware will allow customers to fully experience
Internet Explorer's rich multimedia capabilities."

INTERNET EXPLORER

Internet Explorer is an easy-to-use Internet browser designed for Windows
95. Its features include simple installation and set-up, a Favorites
section for quick access of favorite sites on the Internet, as well as a
Tutorial and Search Button that provides instant access to powerful search
engines like Yahoo, Lycos and Infoseek. Version 2.0 also has special
features such as multimedia capability, enhanced security, an E-mail
package and support for industry standard development tools, including
NNTP for standardized Internet news group reading and posting and HTML for
Internet tags such as right align, centering and tables.

For more information on Internet Explorer, please visit the Microsoft World
Wide Web home page at http://www.microsoft.com.

DIAMOND MULTIMEDIA

Diamond Multimedia designs, markets and supports high-performance PC and
Macintosh multimedia solutions for the home, business and professional
markets. Products include Stealth, Diamond EDGE 3D and Viper multimedia
accelerators, the Fire GL series of professional CAD and 3D 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 marketing and technical support
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.
 
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