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SAN JOSE, Calif. - April 12, 1999 -- Diamond Multimedia Systems, Inc., (Nasdaq: DIMD), a leader in PC multimedia and Internet connectivity, and its RioPort.com division, a popular, new Internet music and audio portal, today unveiled a colorful, high-capacity addition to its Rio portable digital audio line ū the special-edition Rio PMP300 with 64MB onboard flash memory. Designed to dazzle the eye and ear, Diamond's new Rio comes in attractive translucent teal casing and is the first, mass-market portable Internet music player capable of mixing and storing up to two hours of digital-quality music and 12 hours of voice-based audio.

Beginning today, Diamond's new 64MB Rio PMP300 will be available for purchase exclusively through the Company's online store at http://www.diamondmm.com/where-to-buy/online-store for an estimated retail price (ERP) of $249.95, including free 3-day shipping and handling. Customers can see the teal-colored 64MB Rio this week at Diamond Multimedia's booth #445 during Spring Internet World 99 at the Los Angeles Convention Center from April 14th through April 16th.

"The 64MB special-edition Rio PMP300 was developed in response to customer feedback which clearly defined a market demand for high-capacity portable digital audio devices," said David Watkins, president of Diamond Multimedia's RioPort.com Division. "Diamond previewed the 64MB Rio at two recent industry trade shows, including the New York Music and Internet Expo and Ce-Bit, and received positive response by attendees. In light of this reaction, we are very excited to announce that the new 64MB Rio PMP300 is now available to consumers."


Special-Edition Rio PMP300 Comes Feature-Packed for Awesome Performance

Diamond's new 64MB Rio PMP300 features the same portable, lightweight design that made the 32MB Rio PMP300 a popular product among consumers, only now it comes in a special translucent teal case and has twice the storage capacity. The special-edition Rio has no moving parts, so audio playback never skips, even during extreme movement. The Rio PMP300 also includes comfortable headphones and is powered with a single AA battery for up to 12 hours of continuous playback.

Stocked with 64MB of on-board memory, Diamond's new 64MB Rio enables PC users to store up to two hours of digital quality music or 12 hours of voice-based audio downloaded from the Internet or converted from personal CDs. The device supports standard MP3 compression and features an easy-to-use interface for downloading MP3 files from a PC to the Rio. The 64MB Rio PMP300 also comes with MusicMatch's Jukebox software (limited edition) for converting CD tracks to the MP3 format on a PC.

64MB Rio PMP300 is Compatible with Rio Flash Memory Upgrade Cards

The new 64MB Rio PMP300 is compatible with the company's Rio flash memory upgrade cards, enabling users to further expand storage of digital-quality music for up to three hours of non-stop playback. Currently available, the 16MB upgrade card delivers 30 minutes of storage for digital-quality music and carries a U.S. ERP of $49.95. The 32MB upgrade card, scheduled for availability in early-April, provides up to 60 minutes of additional storage and carries a U.S. ERP of $99.95. Diamond's Rio flash memory upgrade cards can be purchased through the company's online store and select computer retailers.

www.RioPort.com is the Source for Downloadable Music and Audio Content

Rio fans who want more information on Diamond's special-edition Rio PMP300 can check out the company's dedicated music and audio portal, www.RioPort.com, or the corporate website, www.diamondmm.com . Aimed at being the leading, one-stop Internet resource for consumers interested in authorized Internet music and spoken audio content, RioPort.com features direct links to sites that provide legal music content for purchase or free download, electronic book vendors, breaking industry news, artist features, contests and more.

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« series of video accelerators, the Monster series of 3D gaming accelerators, the Fire series of professional graphics accelerators, the Supra« 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 http://www.diamondmm.com. The Company's Internet music portal site is at http://www.RioPort.com.


Diamond Multimedia Editorial Contact



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