Diamond Multimedia's RioPort.com Division Forms Strategic Relationship with Sonic Foundry to Offer Artist Creation Tools

Los Angeles, CA — Diamond Multimedia Systems, Inc. (Nasdaq: DIMD), a leader in PC multimedia and Internet connectivity and its wholly owned subsidiary, RioPort.com, Inc., a popular new Internet music and audio portal, today announced at Internet World a strategic partnership with Sonic Foundry, Inc., a leading developer and marketer of digital audio software. The two companies are working closely to provide a complete solution for musicians to create, post, and playback new music via the Internet. RioPort.com is hosting demonstrations in booth #445 at the Los Angeles Convention Center.

Through this partnership, a special trial version of ACID[TM] Style, Sonic Foundry's powerful, yet user-friendly music creation software, is soon to be the premier audio creation tool offered with the Rio player. Musicians and music enthusiasts can create unique compositions using ACID Style and then make their music available to thousands of Internet music fans on RioPort.com.

"At RioPort.com, our goal is to provide a wealth of dynamic digital audio content along with the enabling tools to maximize the end-user experience, and ACID is precisely the kind of application that will help us achieve that goal," said Kurt Ohlfs, Rio platforms business manager for RioPort.com. "ACID's content creation tool, combined with RioPort.com's worldwide audience and the line of Rio portable MP3 players, provides a total end-to-end delivery system for musicians and music fans."

"ACID and RioPort.com are perfect compliments to each other," said Sonic Foundry Chairman and CEO, Rimas P. Buinevicius. "ACID gives even novice users the means to create studio-quality music content. RioPort then adds the capability of sharing this music with Internet music fans and enthusiasts on a worldwide level."

Sonic Foundry's ACID Style includes a library with hundreds of loops — clips of sound — that can be strung together to make continuous music. These loops feature a vast array of instruments performing in a wide variety of musical styles. Users can combine these loops or "paint" them into a track. By combining a few tracks, users can create full-length original songs. ACID Style also offers a variety of audio features that can give songs created with ACID a professional, studio-quality sound.

RioPort.com is a digital music portal aimed at promoting legitimate Internet music and other audio content, primarily in the MP3 format. With its library of MP3 authoring, database, and playback tools, one-click access to the Internet's most popular MP3 content sites and weekly pages featuring hot new artists and contests, RioPort.com is rapidly becoming a favorite site among the Internet music community. Upcoming development plans for RioPort.com will provide even more content and value to Internet music fans. The site is located at www.RioPort.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 PCs 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 the NASDAQ under the symbol DIMD, and its Web site address is www.diamondmm.com. The Company's Internet music portal site is at www.RioPort.com.

How to Contact Diamond Multimedia

There are many ways to reach Diamond for sales support, technical assistance, driver updates, and general information:
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): +82-2-2185-3388, Fax: +82-2-501-7522;
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;
Latin American Office (Miami): 305-593-8777, Fax: 305-593-2779;
Mexican 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, Europe (France): +33-1-55381601;
Pre-sales Information: 1-800-468-5846;
24-Hour Fax-On-Demand Service: 1-800-380-0030;
Investor Relations (U.S. and Canada): 408-325-7476, 1-888-474-3463;
FTP site: ftp.diamondmm.com;
BBS: Europe (Germany): +49-8151-266333 (to 28.8 Kbps) or +49-8151-266334 (ISDN), Europe (UK): +44-1189-444415 (to 33.6 Kbps)

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.