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Technology Stocks : Compaq

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To: Captain Jack who wrote (70896)11/3/1999 7:15:00 PM
From: Elwood P. Dowd  Read Replies (2) of 97611
 
Diamond and Compaq Deliver Seamless 10-Megabit Home Networking Solution

Diamond's HomeFree Phoneline 10 Mbps Available in Compaq Presario
Desktop PCs

VANCOUVER, Wash.--(BUSINESS WIRE)--Nov. 3, 1999--Diamond Multimedia, a division of S3, Inc.
(Nasdaq:SIII - news), today announced that Compaq Computer Corp. (NYSE:CPQ - news) has selected
Diamond's HomeFree(TM) Phoneline 10-megabit product as the home networking option for its
configured-to-order Presario line of Desktop PCs.

Consumers can now select this industry-leading home networking solution when they order their new
custom configured home PCs.

Diamond's HomeFree Phoneline 10 Mbps product enables consumers to easily and affordably network
multiple desktops throughout the home using existing telephone wiring. Consumers can now transfer
information between their PCs 10 times faster than current phoneline networking technology and have
enough bandwidth to share Internet access, printers, files and even digital music. The Presario desktop
PCs feature the Win 98 SE operating system and Microsoft's ICS software. That means up to six users
can access the Internet simultaneously with the Diamond/Compaq home networking solution.

Beginning November 15, the new Diamond HomeFree Phoneline home networking PCI cards will be
available through Compaq's ''Built for You'' kiosk program at more than 9,300 participating retailers or
direct from the Compaq Presario Web site.

''Today's announcement is the next step in providing the technology for consumers to experience a
robust digitally networked home,'' said Sean Burke, vice president of the Presario Products Division at
Compaq. ''When consumers select the HomeFree Phoneline 10 Mbps product with our Presario PCs,
they will be able to easily network multiple PCs throughout the home and experience simple and fast
home networking.''

''Our continued relationship with Compaq ensures that their customers will continue to have access to
the most advanced home networking solutions,'' said Jim Cady, president of Diamond's
Communications Division. ''The HomeFree Phoneline 10 Mbps is our fastest home networking product
yet, offering customers the opportunity to save time and money -- an ideal match for Compaq's Presario
desktops.''

HomeFree Phoneline 10 Mbps is also bundled with Diamond's Rio Audio Manager(TM) software,
enabling consumers to record and play digital audio files, create digital music libraries, and even
transform their PCs into digital audio jukeboxes. Consumers can now share files and peripherals with
other computers while listening to digital audio files throughout their home. The product was developed
to be compatible with the HomePNA 2.0 specification of the Home Phoneline Network Alliance
(HomePNA).

Compaq and Diamond currently offer consumers a similar option with Diamond's 1 Mbps HomeFree(TM)
Phoneline USB product and the Presario line of Notebook Internet PCs. The new 10-megabit solution
maintains full backward compatibility and interoperability with the previous 1-megabit Diamond/Compaq
solution.

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. Recently acquired by the S3 Corporation, Diamond has been
the leader in home networking since its introduction of the HomeFree product line in January 1999.

About S3 Incorporated

Building on the technology, distribution and brand strengths of its Communications, Multimedia and
Professional Graphics divisions, S3 is committed to delivering targeted products for the Personal
Computer and Consumer/Internet Appliance markets. Rounding out its PC silicon offerings, S3's recent
acquisition of Diamond Multimedia(TM) adds consumer brands such as the Viper(TM) and Stealth(TM)
series of graphics accelerators, Rio(TM) series of Internet audio appliances, the Supra(TM) series of
modems, and the HomeFree(TM) line of home networking products.

Except for historical information contained herein, the matters set forth in this press release, such as
statements relating to RioPort's potential, are forward-looking statements that are subject to risk and
uncertainties, including the impact of competitive products and pricing and of alternative technological
advances, design, competitive product and other factors that may affect current and potential customers'
decisions to use the company's products, and other risks detailed from time to time in S3's SEC reports
and in the Joint Proxy Statement/Prospectus dated August 16, 1999 of S3 and Diamond Multimedia
Systems Inc. S3 is a registered trademark of S3 Incorporated. The S3 corporate logo, Diamond
Multimedia, Supra, Viper, Stealth, Rio and HomeFree are trademarks of S3 Incorporated. Other marks
referenced herein are the property of their respective owners.

Contact:

Copithorne & Bellows Public Relations
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