NEW MODULAR DESIGN FEATURED BY DIAMOND'S STEALTH64 VIDEO 2001 MULTIMEDIA
ACCELERATOR SERIES

Upgradable to Hardware MPEG and TV Tuner

SAN JOSE, Calif., August 17, 1995 -- Diamond Multimedia (Nasdaq: DIMD)
today announced the Diamond Stealth64 Video 2001 series as the latest
addition to its family of Stealth64 multimedia accelerators. The Stealth64
Video 2001 series combines DRAM, 64-bit graphics acceleration with
full-screen digital video playback to enhance performance in Windows and
DOS multimedia applications. The modular design allows easy upgrading to
MPEG and TV options in a variety of configurations that appeal to a wide
range of customers. The optional MPEG Video Player 1100 series features
hardware MPEG decoding for smooth, video playback of MPEG-1 video clips.
The optional TV tuner DTV 1100 series converts a broadcast video or cable
signal into a live TV picture on the PC screen.

The 1MB DRAM version of the Stealth64 Video 2001 series, the Stealth64
Video 2121XL, has an estimated retail price of $199, and the Stealth64
Video 2201XL with 2MB of DRAM is $259. The PCI version of the Stealth64
Video 2001 series is available this month through distributors, computer
retailers and mass merchants. The VLB version is expected to ship in
September. The MPEG Video Player 1100 series and the DTV 1100 series have
an estimated retail price of $99 each. These options are expected to be
available in September directly from Diamond Multimedia.

"The modular design of the Stealth64 Video 2001 series expands the
functionality of the PC. It offers multiple possibilities for business and
entertainment applications with the MPEG and TV options," said Ken
Comstock, director of graphics marketing for Diamond Multimedia. "This
product is designed to meet the needs of a diverse customer base in both
office and home environments."

NO COMPROMISE GRAPHICS

Utilizing the S3 Trio64V+ graphics engine with integrated RAMDAC, the
Stealth64 Video 2001 series enhances performance in business, small
office, and home applications under Windows and DOS. It features EDO DRAM
and supports resolutions of up to 1280 x 1024, color depths to 24-bit True
Color, and refresh rates up to 120 Hz. The Stealth64 Video 2001 series for
PCI or VLB is available in either 1MB (upgradable to 2MB) or 2MB of DRAM.
The 1MB version supports up to 65,536 colors at 640 x 480 resolution and
the 2MB version supports up to 16.7 million colors at 800 x 600
resolution.

ACCELERATED DIGITAL VIDEO PLAYBACK

The Stealth64 Video 2001 series 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, color space conversion,
and X and Y interpolation. Users can scale images up to full-screen
without compromising image quality or playback speed. Driver support for
Indeo, Cinepak and software MPEG-1 playback formats is provided.

SCENIC HIGHWAY

The key to the flexibility of the modular design of the Stealth64 Video
2001 series is based on S3's Scenic Highway. This dedicated peripheral bus
provides expansion capabilities for both the MPEG playback and TV tuner
options. The Scenic Highway provides for direct access to these modules
and the accelerator enables independent scaling of both input streams.

OPTIONAL HARDWARE MPEG

The demand for MPEG-1 playback stems from various business and
entertainment areas including multimedia applications, video kiosks,
computer-based training (CBT) and games. Based on the S3 Scenic/MX2 MPEG
decoder, the MPEG Video Player 1100 series provides hardware decoding for
smooth, full-motion video playback on any 486 system or above. It features
MPEG-1 audio and video decoding, audio and video synchronization,
CD-quality audio, and options including slow-motion playback, fast search,
freeze frame, audio mute, single step and random access.

OPTIONAL TV TUNER

Television tuners enable a number of interesting business and home
applications including training, security, education and entertainment.
The DTV 1100 series passes a decoded video signal through the Local
Peripheral Bus. This TV tuner option uses an ISA slot for power and
supports three video sources including S-Video. Other features include
stereo audio in and out, close captioning, teletext and video capture.

Additionally, the DTV 1100 series offers an intuitive software TV control
utility with on-screen programming. This software is modeled after a TV
remote control and offers similar functions including status display;
channel control; inputs for TV, cable and S-Video; screen control; volume
including a mute option; video capture with pause, play, record and file
options; and image control for contrast and color. Broadcast standard
support includes NTSC, PAL and SECAM.

DIAMOND INCONTROL TOOLS

The Stealth64 Video 2001 series includes the Diamond InControl Tools
software applet operating under Windows to control the multimedia
functions of the accelerator while providing complete desktop management.
This software provides video controls such as video playback quality and
frame rate, and audio controls such as audio play and volume adjustment.
General desktop functions include "on-the-fly" resolution switching,
monitor frequency selection, programmable keyboard and mouse hotkeys,
real-time screen centering, DPI calibration, custom cursor color and size,
custom icon font size and style, control of screen saver, and standby and
off (DPMS power savings) modes.

MULTIPLE OPERATING SYSTEM SUPPORT

Driver support for Windows 3.1, Windows NT 3.51, Windows 95, and IBM OS/2
2.0, 2.1 and 3.0 (Warp) are included.

WARRANTY AND SERVICE

As with all of Diamond's graphics and multimedia accelerators, the
Stealth64 Video 2001 series is backed by a five-year parts and labor
warranty. Technical assistance by phone is available six days per week and
through the 24-hour Diamond BBS, CompuServe section and America Online
forums. Diamond also maintains an Internet World Wide Web server and FTP
site.

DIAMOND MULTIMEDIA

Diamond Multimedia Systems, Inc. designs, manufactures and markets
high-performance multimedia solutions for the PC, PowerPC and PCI Power
Macintosh markets. Products include graphics and multimedia accelerators,
which incorporate graphics, video and MPEG acceleration in a single
subsystem. Diamond also manufactures sound cards, audio/telephony
subsystems and multimedia upgrade kits for the personal computer market.
Headquartered in San Jose, Calif., Diamond has marketing and technical
support facilities in Tokyo, Munich and Slough (U.K.). The company'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 exchange
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 is 408-325-7000; Fax: 408-325-7070
Product Support Voice: 408-325-7100; Product Support Fax: 408-325-7171
24-Hour Fax On Demand Service: 1-800-380-0030
America OnLine (Keyword: DIAMOND)
CompuServe (GO DMNDONLINE or GO GRAPHBVEN) [75300,3673]
Internet Web site: http://www.diamondmm.com
FTP site: ftp.diamondmm.com
For information on Diamond products: 1-800-468-5846
BBS numbers at 408-325-7080 (to 14.4K baud) or 408-325-7175 (to 28.8K
baud)
 
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