Diamond Multimedia and ESS Technology Announce Plans to Jointly Deliver Advanced PC Audio Technology for PC Gamers and Digital Music Enthusiasts

Business Wire, Sept 14, 1999

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 14, 1999--

Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in PC multimedia and Internet connectivity, and ESS Technology Incorporated (Nasdaq: ESST), the leader in PC audio technology, today announced a strategic partnership under which Diamond will offer next-generation PC audio solutions, featuring sound innovations based on the ESS chip platform. Diamond's next generation audio accelerators are expected to deliver the latest advancements in 3D sound technology for PC users who enjoy playing the hottest new 3D games and experiencing digital audio entertainment.

"Diamond is partnering with ESS to offer what we believe will be the most innovative and compelling audio technology available to the PC consumer during this year's holiday season," said Scott Vouri, vice president and general manager of the Multimedia Division at Diamond. "With the introduction of our next generation audio accelerators we are continuing our commitment to deliver innovative sound card solutions that compliment our line of high-performance graphics and audio accelerators."

Diamond Partners With The Number One Company In PC Audio Technology

Through the strategic alliance agreement between Diamond Multimedia and ESS Technology, Diamond Multimedia becomes the exclusive retail provider of ESS-based audio solutions in the Western Hemisphere. This partnership will be a key component in enabling Diamond to provide top-of-the-line, high-quality 3D audio solutions under its Monster Sound and Sonic Impact brands.

ESS has long established itself as a trendsetter in providing innovative PC audio technology to accelerator board manufacturers. In fact, Dataquest's June 1999 report noted that ESS had earned the number one ranking in market share for the entire PC audio space for 1998. Diamond's decision to produce and manufacture sound cards based on ESS technology reaffirms its goal to provide computer users with the best in PC multimedia entertainment.

"ESS' sound technology will provide Diamond's next-generation audio accelerator with a compelling feature set enabling consumers to experience up to six-speaker, theater sound quality from their PC," said F. Skip Effler, vice president for sales and marketing, PC products, at ESS Technology Inc. "Sound as low as a whisper or as intense as a freight train will attain a new realism never-before experienced in PC entertainment."

Diamond's High-Performance Audio Series

Diamond has long been known for its progressive developments in digital audio. The company launched the first product in its Monster Sound audio accelerator series in 1997, earning accolades from PC technology publications and computer gamers worldwide for its remarkable positional 3D sound capabilities and robust PCI-based architecture. Diamond also introduced the world's first mass-market portable digital audio player in 1998, the Rio PMP300, bringing the term "MP3" broadly into the mainstream media.

Moving forward, Diamond Multimedia's new PC sound cards based on ESS architecture are expected to deliver the most advanced audio solutions today for enjoying explosive gaming and the latest in digital audio entertainment over the Internet or on the PC desktop.

Diamond Multimedia plans to launch its new accelerators in November 1999.

About ESS Technology Incorporated

ESS Technology, Inc., a leader in Internet, communications, PC audio and digital video, provides advanced products enabling the convergence of communications, computer, consumer, and Internet markets.

ESS' wholly owned subsidiary, ViAlta.com, Inc. provides advanced, easy-to-use products and applications for the Internet. Products include multi-media appliances, applications and content for the Internet, which enable the user to experience new levels of entertainment and e-Commerce.

ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology's common stock is traded on the NASDAQ under the symbol ESST. ESS' web site address is http://www.esstech.com.

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 the NASDAQ under the symbol DIMD, and its web site address is www.diamondmm.com. The Company's Internet music portal site is at www.RioPort.com and its e-commerce sites at www.estore.diamondmm.com and eAuction@diamondmm.com .

How to Contact Diamond Multimedia

There are many ways to reach Diamond for sales support, technical assistance, driver updates and general information: