News Release

Diamond Multimedia and Cisco Systems Complete Successful Test of Shotgun Technology

Diamond Aims to Capitalize on Cisco's Strong Multinational Network Experience
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Mar 09, 1998

VANCOUVER, Wash. -- March 9, 1998 -- Diamond Multimedia Systems, Inc. (Nasdaq: DIMD), a leader in interactive multimedia acceleration, and Cisco Systems (Nasdaq: CSCO) today announced that they have successfully completed interoperability testing between Diamond Multimedia's Shotgun(TM)technology and Cisco's universal access servers, including the newlyannounced carrier-class AS5800 series, the AS5300, the AS5200 and the Cisco 3600 series.

Diamond Multimedia's Shotgun technology delivers enhanced Internetaccess by using two modems and two regular phone lines to bond the twoanalog modem data streams, enabling Internet download speeds of up to112Kbps, twice as fast as possible with modems that use a single phoneline. Shotgun technology uses Internet Engineering Task Force (IETF)standard Multilink Point-to-Point Protocol (MLPPP) technology toprovide Internet users with these higher access speeds.

The interoperability testing with Cisco demonstrates the portablearchitecture of Shotgun technology and its ability to support a varietyof protocols. These positive test results will enable DiamondMultimedia to expand its ISP coverage and support. "We are pleased toteam with Cisco, the leading provider of networking solutions for theInternet," said Jim Cady, vice president and general manager of DiamondMultimedia's Communications Division. "Shotgun's interoperability withCisco access servers paves the way for Diamond Multimedia to cultivatemore ISP and corporate exposure."

Diamond Multimedia

Diamond Multimedia is driving the interactive multimedia market byproviding advanced solutions for home, business and professionaldesktop computer users, enabling them to create, access and experiencecompelling new media content from their desktops and through theInternet. Diamond accelerates multimedia from the Internet to the harddrive with products that include the Stealth and Viper. series ofmedia accelerators, the Monster series of entertainment 3D and soundaccelerators, the Fire series of professional 3D and SCSI accelerators,and the Supra. series of modems. Diamond also markets DVD and videophone kits. Diamond's common stock is traded on the Nasdaq Stock Marketunder the symbol DIMD, and its web site address is http://www.diamondmm.com.

Monster 3D and Supra are either trademarks or registered trademarks ofDiamond Multimedia Systems, Inc. Monster. is a registered trademarkof Monster Cable. Viper. is a registered trademark of DirectedElectronics, Inc., Used under License. All other trademarks referencedare the service mark, trademark or registered trademark of theirrespective manufacturers. This announcement relates to products whoseintroductions are in the United States of America. The product name,contents, prices and availability may differ elsewhere in the worldaccording to local factors and requirements.

Except for historical information contained herein, the matters setforth in this press release, such as statements relating to theCompany's ability to successfully exploit technological and marketdevelopments, the timing and success of new product introductions bythe Company and its competitors, and the Company's ability to invest innew technologies and to enhance its existing systems areforward-looking statements that are subject to risks and uncertainties,including the impact of competitive products and pricing andalternative technological advances, the timely and successfuldevelopment and market acceptance of new products and upgrades toexisting products, and other risks as detailed from time to time inDiamond Multimedia's SEC filings, including its most recent Forms 10-Kand 10-Q.

Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is theworldwide leader in networking for the Internet. News and information areavailable athttp://www.cisco.com.

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Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.

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