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To: JungleInvestor who wrote (12848)3/15/1999 7:22:00 PM
From: ToolManInc  Read Replies (1) | Respond to of 14577
 
Diamond Multimedia Launches New Powerful
Stealth III S540 Graphics Accelerator For PC
Gamers Under $110

Source: Business Wire

SAN JOSE, CALIF. (March 15) BUSINESS WIRE -March 15, 1999--

Top-Selling Stealth Line Enhanced to Feature Savage4's S3TC
Texture Compression and AGP 4X for Refined Graphics

Diamond Multimedia Systems, Inc. (Nasdaq:DIMD), a leader in PC
multimedia and Internet connectivity, today announced its
next-generation Stealth graphics accelerator, the Stealth III S540,
featuring support for AGP 4X technology and S3 Texture Compression
(S3TC) for piercing image quality. Diamond's new Stealth III S540,
along with the new Viper V770 also announced today, completes Diamond's
spring 3D graphics lineup, giving PC consumers the opportunity to
choose the Diamond graphics solution that best meets their needs. The
Savage4 Pro-based Stealth III S540 includes S3TC, and features the
first Intel-validated AGP 4X implementation for improved system
performance, more realistic textures and sharper images. Diamond's
Stealth III S540 delivers the latest technology in 2D and 3D graphics
acceleration and hardware-accelerated digital video playback for the
mainstream PC gaming and consumer markets at an enticing price point
under $110.

"Diamond's top selling Stealth line is once again providing a
high-quality graphics solution for retailers, PC users and OEMs looking
for leading edge technology," said Scott Vouri, vice president and
general manager of the Multimedia Division at Diamond Multimedia. "Many
of today's popular games require 3D hardware acceleration for leading
performance, and with the new Stealth III S540 Diamond delivers a
high-performance graphics solution at a great price."

"With 32-bit rendering, single-pass multi-texturing, bump mapping and
support for large textures and improved filtering, new 3D hardware
products like Diamond's Stealth III are leapfrogging what's available
on the market today," said Mike Feibus, principal at Mercury Research
of Scottsdale, Ariz., a leading industry research firm specializing in
the PC components markets. "That should give consumers something to get
excited about."

Accompanied by true 32-bit 3D rendering, DirectX 6 support, AGP 4X
technology and full support for Intel Pentium III and AMD K7
processors, Diamond's new Stealth III S540 graphics accelerator
increases the performance and strengthens the realism of current
mainstream and gaming applications.

"The Stealth III S540 represents another significant milestone in S3
and Diamond's long-term, award-winning relationship," said Dan Karr,
vice president of Worldwide Sales for S3 Incorporated. "Building on the
strengths of the Savage4 architecture, the Stealth III is an optimal
solution for both consumer and commercial users who want today's
hottest graphics technology."

Diamond's Stealth III S540

Diamond Multimedia's new Stealth III S540 graphics accelerator will be
available with 16MB of onboard memory and support for AGP 2X or AGP 4X
in both a retail and system integrator/OEM configuration. The
combination of support for textures up to 2048 x 2048 in size and
Savage4's unique S3TC hardware texture compression, an industry
standard included in DirectX 6.0 capable of storing 240MB in 64MB of
system memory, brings high-quality resolutions and photorealistic
images to complex 3D applications on the market. Additional features
include a true 128-bit 2D/3D engine for high speed and quality,
single-pass multi-texturing, 32-bit rendering, resolution support up to
1920 x 1440, stencil buffering, and complete DirectX 6 and OpenGL ICD
support for added hardware acceleration in today's hottest 3D
applications.

Furthermore, S3's S3TC technology has been broadly adopted by many of
this year's highly-anticipated 3D titles, including Anachronox,
Expendable, Half Life, Quake3 Arena, Unreal, Unreal Tournament, and
TrueSpace4. Consumers who purchase the Stealth III S540 retail graphics
accelerator and Interplay's Descent 3 first-person action game will be
eligible for a $20 mail-in rebate from Diamond Multimedia for an extra
value. The Stealth III S540/Descent 3 rebate program begins May 15,
1999 and runs through Sept. 6, 1999.

Diamond's new Stealth III S540 graphics accelerator will have
hardware-accelerated DVD playback featuring second-generation motion
compensation and subpicture alpha blending.

InControl Tools 99 -- Tuned for Gamers!

Diamond Multimedia's new Stealth III S540 will ship with Diamond's own
customized desktop utility -- InControl Tools 99, also announced today.
InControl Tools 99 gives Stealth III S540 users the ability to
customize and select their preferred 3D settings for Direct 3D and
OpenGL features, as well as the ability to optimize performance for
individual games.

Pricing and Availability

Diamond Multimedia's Stealth III S540 retail graphics accelerator is
expected to ship in May, at a U.S. estimated retail price (ERP) of less
than $110. The retail Stealth III S540 configuration is expected to be
available through major retailers including Babbages, CompUSA, and
Electronics Boutique, as well as from on-line retailers including
Diamond's own Online Store at
diamondmm.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 NASDAQ under the symbol DIMD, and its web
site address is diamondmm.com. The Company's Internet music
portal site is at rioport.com.

How to Contact Diamond Multimedia

There are many ways to reach Diamond for sales support, technical
assistance, driver updates and general information: Internet Web
Sites: diamondmm.com and rioport.com Diamond
Multimedia's Headquarters and Multimedia Division: 408/325-7000; Fax:
408/325-7070 Communications Division (Supra brand modems) Main Phone
Number: 360/604-1400; Fax: 360/604-1401 European Division (Germany):
+49-8151-266-0; (UK): +44-1189-444400; (France) +33-1-55381600 Korean
Office (Seoul): +82-2-551-2700; Fax: +82-2-551-2710 Japanese Office
(Tokyo): +81-3-5695-8401; Fax: +81-3-5695-8403 ASEAN Office
(Singapore): +65-353-9511; Fax: +65-353-9510 Hong Kong Office:
+852-2262-9518; Fax: +852-2262-9555 Australian Office (Sydney):
+61-2-9460-2355; Fax +61-2-9460-2360 Swedish Office: +46-417-40060;
Fax +46-417-40054 Latin America Office (Miami): 305/593-8777; Fax:
305/593-2779 Mexico Office (Guadalajara): 523-110-1144; Fax:
523-110-0744 Product Support (Voice), United States: 541/967-2450;
Europe (Germany) +49-8151-266-330; Europe (UK) +44-1189-444444; Europe
(France) +33-1-55381616; TDD/TTY Support 541/967-2451 Product Support
(Fax), United States: 541/967-2401; Europe (Germany) +49-8151-266-331;
Europe (UK): +44-1189-444445; (France) +33-1-55381601 Pre-sales
Information: 1-800/468-5846 24-Hour Fax-On-Demand Service:
1-800/380-0030 Investor Relations: 408/325-7476; 1-888/474-3463 (U.S.
and Canada) FTP site: ftp.diamondmm.com BBS: Europe (Germany) BBS at
+49-8151-266333 (to 28.8 Kbps) or +49-8151-266334 (ISDN); Europe (UK)
at +44-1189-444415 (to 33.6 Kbps)

Note to Editors: HomeFree, Monster 3D, Rio, Shotgun, SpeedStar and
SupraSonic are either trademarks or registered trademarks of Diamond
Multimedia Systems, Inc. Monster(R) is a registered trademark of
Monster Cable. Viper(R) is a registered trademark of Directed
Electronics, Inc., Used under License. All other trademarks referenced
are the service mark, trademark or registered trademark of their
respective manufacturers. This announcement relates to products whose
introductions are in North America. The product name, contents, prices
and availability may differ elsewhere in the world according to local
factors and requirements.

Except for historical information contained herein, the matters set
forth in this press release, such as statements relating to the
Company's ability to successfully exploit technological and market
developments, the timing and success of new product introductions by
the Company and its competitors, and the Company's ability to invest in
new technologies and to enhance its existing systems are
forward-looking statements that are subject to risks and uncertainties,
including the impact of competitive products and pricing and
alternative technological advances, the timely and successful
development and market acceptance of new products and upgrades to
existing products, and other risks as detailed from time to time in
Diamond Multimedia's SEC filings, including its most recent Forms 10-K
and 10-Q.