Diamond Multimedia Now Shipping PCI Version of Stealth III S540

Business Wire, July 13, 1999

Newest Addition To Award-Winning Stealth Family Now Available For

System Upgrades

Diamond Multimedia Systems, Inc. (Nasdaq: DIMD), a leader in PC multimedia and Internet connectivity, Tuesday announced the shipment of the new PCI version of the Stealth III S540. This distinct configuration featuring S3 Incorporated's (Nasdaq: SIII) texture compression (S3TC) technology offers PCI and non-upgradeable AGP system owners the opportunity to take advantage of high-performance graphics at an attractive price point.

"Diamond's effort to provide leading edge products at a favorable price for their customers is evident in the decision to ship a PCI version of the Stealth III S540," said Scott Vouri, vice president and general manager of the Multimedia Division at Diamond. "Now, consumers looking for incredible graphics quality and performance from a PCI graphics accelerator can obtain optimal performance from their desktop with Diamond's PCI Stealth III S540."

Diamond's PCI Stealth III S540

Diamond Multimedia's new Stealth III S540 PCI graphics accelerator comes with 32MB of onboard memory and full support for Intel and AMD processors. With Savage4's unique DirectX 6.0 feature, S3TC, the Stealth III S540 PCI graphics accelerator can deliver up to six times the image quality of competing products. The S3TC photo-realistic 3D imagery includes the usage of large texture maps up to 2048x2048 that were previously accessible to AGP system-users only.

"S3 and Diamond have long been known for developing award-winning solutions that meet the needs of a wide range of PC users," said Greg van den Dries, vice president of corporate marketing for S3 Incorporated. "With the roll-out of the PCI-based Stealth III S540, we continue to offer customers the technology they want in the configurations they need."

Diamond's PCI Stealth III S540 equipped with a 128-bit 2D/3D engine is capable of achieving fill rates of up to 125 million pixels per second and provides features such as single-pass multi-texturing, 32-bit rendering, up to 1920x1440 resolution support and stencil buffering. Diamond's new graphics accelerator is also designed to enhance applications developed using the DirectX 6.0 and OpenGL(R) APIs. In addition, the Stealth III S540 PCI graphics solution supports multiple monitors under Windows 98(TM) allowing the end-user to maximize their PC experience.

The Choice of A Software Bundle

As with the Stealth III S540 AGP, customers who purchase Diamond's PCI Stealth III S540 also have the option to select the "software bundle" of their choice. The Diamond Game Zone allows customers to choose two full-version PC games for only a $12.95 shipping and handling charge. Customers can select from Sin, Shogo, Heretic II, Asteroids, StarSiege Tribes, and Fighter Squadron.

In addition, Diamond Multimedia continues to offer the Channelware program enabling PCI customers of Stealth III S540 to sample Need for Speed III from Electronic Arts. After the trial period, customers have the option to purchase the title. Through Diamond's Channelware program, a Nortel(R) venture, Stealth III S540 customers will receive four free hours of gameplay with the fast-action title Need for Speed III.

InControl Tools 99--Custom 3D Graphics Settings

The PCI version of the Stealth III S540 also ships with InControl Tools 99, a Diamond customized utility suite that allows the end-user to optimize their desktop settings. Developed by the company's core graphics engineering team, InControl Tools 99 gives Stealth III S540 PCI users the ability to customize and select their preferred 3D settings for Direct 3D(R) and OpenGL features, as well as the ability to enhance performance for individual games.

Also featured with the InControl Tools 99 utility is the new Diamond Update Wizard, which makes updating the software for your Diamond hardware easier than ever before. The Update Wizard scans your system for supported Diamond hardware, then identifies the current versions of software which is installed for your Diamond product. If there is a newer version of the Diamond software available, the Update Wizard can download and install the latest version automatically via an internet connection.

Pricing and Availability

Diamond Multimedia's new PCI version of the Stealth III S540 graphics accelerator is now shipping at the U.S. estimated retail price (ERP) of $129.95. The Stealth III S540 PCI configuration can be purchased through major retailers, including Best Buy, CompUSA, and Electronics Boutique, as well as from on-line retailers including Diamond's own Online Store at http://www.diamondmm.com/where-to-buy/online-store/.

About Diamond Multimedia

Diamond Multimedia is a leader in PC multimedia and Internet connectivity, providing advanced products that enable desktop computer users to create, access and experience compelling, new media content from their PC's and through the Internet. Products include the Rio series of Internet audio appliances, the Stealth and Viper(R) series of video accelerators, the Monster series of 3D gaming accelerators, the Fire series of professional graphics accelerators, the Supra(R) series of modems, and the HomeFree line of home networking products. Diamond's common stock is traded on NASDAQ under the symbol DIMD, and its web site address is http://www.diamondmm.com. The Company's Internet music portal site is at http://www.RioPort.com.