DIAMOND MULTIMEDIA INTRODUCES STEALTH 3D ACCELERATOR WITH FAST 2D GRAPHICS, 3D ANIMATION AND MPEG VIDEO PLAYBACK Diamond's Next Generation Stealth Provides Advanced Performance for Multimedia, Games and Business Applications on the PC SANTA CLARA, Calif., April 1, 1996 - Today at the Computer Game Developers' Conference, Diamond Multimedia Systems, Inc. (Nasdaq: DIMD) announced Diamond Stealth 3D 2000, the first product in a new line of next generation Stealth 3D multimedia accelerators that will deliver high-performance 2D graphics as well as 3D animation and MPEG-1 digital video playback acceleration for PCs running Microsoft's Windows 95, Windows 3.1x, Windows NT 3.51 and DOS operating systems. Designed for systems with a PCI bus, the new Stealth 3D 2000 accelerates a new realm of computer applications featuring realistic 3D animation and video such as multimedia applications and games. The modular design of the Stealth 3D 2000 will also allow for the affordable addition of a TV tuner option. An OEM/VAR version of Stealth 3D 2000 will be available in April to Diamond OEM customers and through its authorized distributors. "The new Diamond Stealth 3D provides ultra high-performance 2D capabilities as well as powerful 3D graphics and video acceleration," said Ken Wirt, vice president of marketing, Diamond Multimedia. "Now PC users can take advantage of the latest in immersive 3D animation and continue to improve Stealth performance and reliability for their Windows acceleration and business application needs." "The market for 3D graphics is ready to take off," said Jon Peddie, industry analyst and editor-in-chief of the PC Graphics Report, located in Tiburon, Calif. "With the Stealth 3D, Diamond is in a position to provide a solution that meets the growing demands of the mass market." The Diamond Stealth 3D 2000 utilizes S3 Inc.'s ViRGE 64-bit DRAM graphics and video accelerator chip, which is based on the company's new S3d architecture. The ViRGE engine is an advanced single-chip solution for interactive 3D rendering, 2D GUI and video acceleration with an integrated RAMDAC and clock synthesizer. ------------------------------------------------------------------------------- INTERMEZZO S3 ViRGE and ViRGE/VX 3D-Enabled Multimedia Accelerator The first two members of its new ViRGE (Video and Rendering Graphics Engine) family, the ViRGETM and ViRGE/VXTM 64-bit graphics and video accelerators are the first single-chip products to integrate 3D rendering, 2D GUI and video acceleration with a RAMDAC and clock synthesizer. With a rich feature set, affordable pricing and wide industry acceptance, the ViRGE family is the first to enable 3D graphics on mainstream PCs. The ViRGE 64-bit DRAM-based accelerator combines a 135MHz RAMDAC and clock synthesizer with the multimedia capabilities of S3's Trio64V+ including video acceleration, video playback using both software and hardware sources, live video support and the ability to connect with popular NTSC and PAL decoders. Additionally, ViRGE is SVGA-compatible, so as to support legacy DOS applications and games, and provides high-performance 2D GUI acceleration support for resolutions up to 1280 x 1024 x 256 colors at 75Hz. S3's ViRGE accelerator also provides support for all major 3D APIs, including OpenGL, Microsoft's Direct3D and RealityLab, as well as Argonaut BRender and Criterion Renderware. ------------------------------------------------------------------------------- "The S3d architecture's leading-edge 3D performance and feature set together with Diamond's ability to provide optimized end-user solutions will take computing to the next level of interactive gaming and powerful business applications," said Neal Margulis, vice president of home and advanced system products for S3. "Delivering the hot 3D performance and superior 2D graphics and video acceleration, Diamond's Stealth 3D 2000 is at the forefront of next-generation PC graphics." High-Performance 2D Graphics The Diamond Stealth 3D 2000 features ultra-fast 2D graphics acceleration. Using industry-standard benchmark tests, Diamond has shown that the Stealth 3D consistently performs at same levels or better as much higher-priced WRAM accelerators, such as the Matrox Millenium. The Stealth 3D, populated with 2MB of EDO DRAM, provides 256 colors at resolutions up to 1600 x 1200 as well as true color, 16.7 million colors, at resolutions as high as 800 x 600. The maximum supported refresh rate is 120 Hz. High resolution and high color-depths are extremely important for PC users running desktop publishing, document image processing and CAD applications on large monitors. The 2D acceleration also improves the performance of spreadsheet, presentation and other business application software. Powerful 3D Multimedia Acceleration Using S3's triangle-based polygon rendering engine, the Diamond Stealth 3D 2000 delivers numerous advanced 3D features. Those features include: complex perspective corrected texture mapping that adds significant realism and image quality to 3D objects; bi-linear filtering, MIP-mapping and tri-linear MIP-mapping that eliminate the "blockiness" and visual artifacts such as "sparkle" and "jaggies" commonly seen in software-only 3D games, providing for a smoother look-and-feel of objects; and alpha blending, de pth-cueing and fogging that deliver transparency effects for realistic smoke, steam, fog, glass, water, plastic, and other objects. Z-buffering capabilities are used to speed the removal of hidden surfaces so that objects appear life-like, without compromising 3D performance. The Stealth 3D 2000 is standard with 2MB of EDO DRAM. Memory that is not accessed for the display buffer is available for Z-buffer and texture mapping, which provides the ability to further accelerate 3D applications at higher resolutions. The combination of the above 3D elements when used in virtual reality applications, on-line 3D worlds, or games offers a captivating computer experience that can help make people feel as though they are immersed in a real-world environment. Software Development Support The Diamond Stealth 3D 2000 supports a wealth of today's existing DOS and Windows games and software applications. Currently Diamond is partnering with S3 to provide software companies with the tools they need to develop interactive 3D applications designed to take advantage of the special 3D features of the ViRGE technology on the Diamond Stealth 3D 2000. More than fifty developers are currently evaluating the technology and many have committed their support, including Asymetrix, Caligari Corporation, Domark Software, GTE Interactive, Gremlin, Interplay Productions, Looking Glass, New World Computing, Reality Bytes, Terminal Reality, and Psygnosis. Once the Microsoft Direct3D APIs are completed for the Windows 95 operating system, the market can expect to see even more games and applications that take advantage of 3D acceleration features. Diamond plans to provide Direct3D drivers to Stealth 3D 2000 customers following the final release of Direct3D from Microsoft. Support for all other relevant Microsoft DirectX APIs are planned for the Stealth 3D 2000 as well. "The Diamond Stealth family of graphics subsystems has been known for its ability to get great performance from a PC running Windows," said Eric Engstrom, program manager for DirectX at Microsoft Corp. "By designing 3D into the Stealth line, Diamond will further enhance the rich multimedia capabilities of Windows 95 for increased interactivity in entertainment and business applications." "The graphics horsepower of the Stealth 3D really has the ability to pump up the performance of our games," said Brian Fargo, CEO of Interplay. "Interplay is known for designing cutting-edge games for the PC, while Diamond is known for its high-performance multimedia accelerators. The combination of Stealth 3D and Descent II will provide a totally awesome gaming experience." "Psygnosis is pleased to be partnering with a market leader like Diamond Multimedia to bring its popular Sony PlayStation titles to the PC," said Ian Heatherington, managing director of Psygnosis. "Titles such as the highly acclaimed Destruction Derby should be as action packed on the PC as their Sony PlayStation counterparts with the advanced graphics capabilities of the Stealth 3D." Digital Video Playback The Diamond Stealth 3D 2000 features smooth, full-motion digital video playback at 30 frames per second by off-loading several functions from the host CPU. These functions include image scaling and color space conversion. Users can scale images up to full-screen without compromising image quality or playback speed. Drivers for Indeo, Cinepak and software MPEG-1 are provided. Optional TV Tuner The Diamond DTV 100 TV tuner, enabling business and home television applications including training, security, education and entertainment, will be available as an upgrade option for the Diamond Stealth 3D 2000 for $129. The DTV 1100 converts a broadcast video or cable signal into a live TV picture on the PC screen and uses an ISA slot (for power only). Other features include stereo audio in and out, closed captioning, video capture and an intuitive software TV control resembling a standard "remote control" for on-screen programming. Diamond Multimedia Diamond Multimedia designs, markets and supports high-performance PC and Macintosh multimedia solutions for the home, business and professional markets. Products include the Stealth, Diamond EDGE 3D and Viper series of multimedia accelerators, the Fire GL series of professional 3D and CAD accelerators, and the Supra series of fax/modems. Diamond also markets ISDN adapters, sound cards, multimedia upgrade kits and digital video editors. Headquartered in San Jose, CA, Diamond has sales, marketing and technical facilities in Vancouver (Wash.), Tokyo, Starnberg (Germany), Paris and Slough (U.K.) Diamond's products are sold through regional, national and international distributors as well as to major computer retailers, mass merchants and OEMs worldwide. Diamond's common stock is traded on the Nasdaq National Market under the symbol DIMD. Diamond Stealth is a trademark of Diamond Multimedia Systems, Inc. ViRGE is a trademark of S3 Incorporated. EDGE is a registered trademark of EDGE Interactive Media, Inc. in the US, UK, France, and Germany and is a trademark elsewhere, used under license. All other trademarks referenced are the service mark, trademark or registered trademark of their respective manufacturers. The statements made herein regarding the Stealth 3D 2000 pricing, availability and configuration are forward looking statements that are subject to change. EDGE is a registered trademark of EDGE Interactive Media, Inc. in the US, UK, France, and Germany and is a trademark elsewhere, used under license.