VersaDisc is the first DVD magazine of its kind, providing consumers with a free full-length feature film on each issue, plus news, reviews, game demos, music videos and more. Featuring the superior image and audio quality, storage capacity and interactivity of DVD with the real-time interaction made possible by the Internet, VersaDisc keeps consumers informed about the latest entertainment content available on DVD. Diamond has already taken delivery of its first shipments of VersaDisc and expects to continue bundling the latest monthly issues of the disc throughout 1999.

“The same audience who appreciates the superior quality of the Monster Sound MX300 is likely to be among the early adopters of DVD technology,” said Giovanni D’Andrea, president of Versatile Media One. “With the credibility of the Diamond Multimedia brand and its leading edge customers behind us, we are off to a great start in our quest to become the definitive provider of DVD information to consumers.”

Viewing VersaDisc or any DVD with the power of the Monster Sound MX300 audio accelerator will create the most advanced multimedia experience available on the PC. Featuring Aureal Semiconductor’s VortexTM 2 processor and A3D 2.0 positional 3D audio support, Diamond’s Monster Sound MX300 is the ideal solution for PC entertainment enthusiasts who demand a sound card with the latest advancements, including Dolby DigitalTM support and interactive positional 3D audio rendering technology.

Versatile Media One is a privately held corporation based in Glendale, California. In addition to publishing VersaDisc, VM1 is a comprehensive DVD studio, providing DVD authoring, encoding and graphic production. For more information about VM1 and a free subscription to VersaDisc, visit http://www.DVD4U.com, call (818) 550-5880 or info@dvd4u.com.

Diamond Multimedia is a leader in multimedia solutions and emerging technologies for the home and business markets, 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, Viper® and SpeedStar series of video accelerators; the Monster series of 3D gaming accelerators; the Fire series of professional graphics accelerators; the Micronics series of system boards; the Supra® series of modems; and the HomeFree line of home networking products. Diamond’s common stock is traded on the Nasdaq Stock Market under the symbol DIMD, and its web site address is http://www.diamondmm.com.

Contact:

InterActive Agency
Christianna Billman
chris@iagency.com

Alan Wallace
awall@iagency.com
(310) 664-6710 x 123