DIAMOND MULTIMEDIA SYSTEMS RELOCATES TO NEW CORPORATE HEADQUARTERS

Unprecedented Corporate Growth, Multimedia Expansion Strategy Spurs Move To
Larger Facilities

SAN JOSE, Calif., February 1, 1995 -- Diamond Multimedia Systems, Inc.
today announced that the company has moved its corporate headquarters from
Sunnyvale to a new 80,000 square-foot facility in San Jose, Calif. The
headquarters, which doubles the size of Diamond's previous facility,
houses marketing, sales, engineering, operations, customer service and
technical support, finance and administration. The company also has added
20,000 square feet of additional manufacturing space nearby.

The move follows the company's recent expansion, which began last September
when Diamond broadened its presence as a leading graphics supplier to
encompass a wider variety of multimedia solutions, including quad-speed
CD-ROM upgrade kits, digital video accelerators and its newly announced
audio/telephony subsystems.

The new building is equipped with more advanced telecommunications and
additional space for technical support to improve the company's post-sale
customer service capabilities.

"Diamond has been gaining momentum in the multimedia market," said William
J. Schroeder, Diamond President and CEO. "Our new headquarters allows us
to significantly enhance our existing manufacturing and technical support
capabilities, and to continue delivering next-generation multimedia
solutions to our customers in the personal computer market."

Diamond Multimedia's new corporate headquarters is located at 2880 Junction
Avenue, San Jose, Calif., 95134. The new main telephone number is (408)
325-7000 and the fax number is (408) 325-7070. The new technical support
number is (408) 325-7100.

Diamond Multimedia Systems, Inc. is a privately held company that designs,
manufactures and markets high-performance multimedia solutions, including
graphics and digital video accelerators, sound cards, audio/telephony
subsystems and multimedia upgrade kits for the personal computer market.
Headquartered in San Jose, Calif., Diamond has marketing and technical
support facilities in Tokyo and Munich. The company's products are sold
through regional, national and international distributors as well as to
major OEMs and retailers worldwide. Diamond had 1994 sales of $203 million
and was ranked 18th on Inc. Magazine's list of the fastest growing private
companies in America.

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