DIAMOND MULTIMEDIA'S TELECOMMANDER AUDIO/TELEPHONY SUBSYSTEM IS CHOSEN FOR
DIGITAL EQUIPMENT'S NEW PENTIUM WINDOWS '95 PLATFORM

SAN JOSE, Calif. -- August 21 , 1995 -- Diamond Multimedia Systems, Inc.
(Nasdaq: DIMD) today announced that Digital Equipment Corporation (NYSE:
DEC) has selected Diamond as its vendor of choice to supply a completely
integrated audio/telephony solution for six new pentium-based systems
targeted for the small office/home office (SOHO) market. DEC's new systems
will utilize Windows '95 and will be sold through retail outlets
nationwide begining August 24, 1995.

The telephony market is a new business area for Diamond and the Digital
business represents a very significant design win for the company.

Diamond's integrated audio/telephony subsystem, the TeleCommander 2500 and
3500, provides Digital with a full-featured solution that is specifically
designed for the SOHO customer. The TeleCommander 2500 combines a 14.4
Kbps fax/modem, 16-bit CD quality sound which Diamond has upgraded for the
Digital solution to include 3D enhanced sound and software wavetable
synthesis, full-duplex speakerphone and professional voicemail. The
TeleCommander 3500 offers the same features, but incorporates a faster
28.8 Kbps modem.

"The fast-growing SOHO market presents an opportunity for products that
integrate audio, fax, modem, speakerphone and voicemail functions into the
personal computer," said Ken Wirt, vice president of marketing at Diamond.
"Digital's new integrated multimedia systems confirm Diamond's belief that
the growth of the PC will be driven by integrated productivity and
communication capabilities for the SOHO worker," added Wirt.

LINK Resources, a market research firm, has projected that the SOHO market
will grow to 47.4 million people in the United States by the end of 1995,
jumping to nearly 60 million by 1998. In 1994, the SOHO market spent in
excess of $6 billion in PCs alone. This growth is being fueled by a number
of factors including a desire for more flexible lifestyles, corporate
downsizing, and technology improvements coupled with declining computer
prices which make working at home or in a small office easier and more
affordable.

"While the ability to work in one's environment of choice, be it the home,
a small business or a satellite office of a large company, is an
attractive alternative for a growing number of people, it presents certain
challenges, particularly relating to communications," said Tim Eckles,
director PM&M for consumer products at Digital. "We evaluated solutions
from several vendors in order to provide the optimal solution to these
communications challenges. Diamond's solution was selected based on its
technical merit as well as its price/performance combination," added
Eckles. Digital also has selected one of Diamond's bundled software
applications, FaxTalk Messenger, a fax and voicemail administration
software application, to include in their systems.

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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