"Virgin Throws Down the Gauntlet..."
Virgin Entertainment Group To Promote S3's Diamond Multimedia Rio Players Within Megastores; Virgin Throws Down the Gauntlet on Digital Music
LOS ANGELES--(BUSINESS WIRE)--Dec. 13, 1999--The Virgin Entertainment Group Inc. and Diamond Multimedia, a division of S3 Inc. (Nasdaq:SIII), today announced a new initiative to promote the Rio 500 digital music player and Rio-related accessories at Virgin Megastores throughout North America.
After initial tests in its flagship stores, Virgin Megastores throughout the United States and Canada will begin selling Rio 500 players and accessories, including flash memory cards. In addition, Virgin will develop in-store music download capabilities for flash memory devices through its Virgin on Demand digital music download kiosks.
Virgin customers will be able to buy digital music through the kiosks and have it transferred directly onto a Rio flash memory card. Virgin will offer in-store training for consumers on use of the Rio player and downloading and management of digital music. Virgin's support of digital music in the store, and in a portable format, is a music industry first.
Diamond Multimedia revolutionized the music world with its October 1998 introduction of the Rio PMP300, a pager-sized device that allowed for the portable playback of digital music from the Internet. Heralded as a breakthrough product in the media, the Rio PMP300 brought the term "MP3" into the mainstream for the first time and has spawned the development of third party and shareware applications designed specifically for the device.
The second generation Rio 500 players feature 64MB of built-in memory (expandable to 96MB) and allow up to two hours of continuous digital music listening.
"Virgin has always been the retail leader in the evolution of the retailing of entertainment media; downloadable music is the natural next step in that evolution," said Russ Pillar, president and chief executive officer of the Virgin Entertainment Group Inc.
"We live the credo 'Give the People What They Want.' You can rest assured that this relationship with Diamond, following on the heels of the launch of www.virginjamcast.com, is but the next in a series of revolutionary offerings from us."
"Rio 500 availability in Virgin Megastores marks an exciting move toward more mainstream adoption of digital audio players by the recording industry," said Jim Cady, president, Diamond Multimedia Communications Division. "Consumers can now find our Rio players in the places they go to buy music."
About Virgin Entertainment Group
Virgin Entertainment Group provides consumers with a range of superior entertainment experiences through a family of integrated Virgin-branded businesses. The "category killer" Virgin Megastores and www.virginmega.com are integral parts of a strategy to get consumers who are looking for music, books, video, software and other entertainment content what they want, how they want it, when they want it.
About Diamond Multimedia Communications
Recently acquired by the S3 Corp., Diamond has been the leader in communications, digital music players and home networking since its introduction of the HomeFree product line in January 1999, and the introduction of the Rio player in November 1998. The company's Web site address is www.diamondmm.com
About S3 Inc.
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.
CONTACT:
Virgin Entertainment
Sarah Buxton, 323/935-1500, ext. 2024
or
Paine & Associates
Vicky Nave, 310/288-5528
KEYWORD: CALIFORNIA INTERNATIONAL CANADA
BW0480 DEC 13,1999
12:14 PACIFIC
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