DIAMOND MULTIMEDIA ANNOUNCES AGREEMENT WITH CIRCUIT CITY

Diamond Products to be Sold in Stores Across the U.S.

SAN JOSE, Calif., July 11, 1995 -- Diamond Multimedia Systems, Inc.
(NASQAQ: DIMD) has signed an agreement designating Circuit City as an
authorized reseller of Diamond products. Circuit City is one of the
nation's largest retailers of brand-name consumer electronics and
appliances. Based in Richmond, Virginia, Circuit City has more than 350
stores nationwide.

"We are excited to be partnering with Circuit City and expanding our retail
channel. The availability of Diamond products will provide consumers with
the competitive pricing and superior service offered by Circuit City,"
said Scott Holt, senior vice president of worldwide sales at Diamond
Multimedia.

DIAMOND MULTIMEDIA

Diamond Multimedia Systems, Inc. designs, manufactures and markets
high-performance multimedia solutions for the PC, PowerPC and PCI Power
Macintosh markets. Products include graphics and multimedia accelerators,
which incorporate graphics, video and MPEG acceleration in a single
subsystem. Diamond also manufactures 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, Munich and Slough (U.K.). The company'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 exchange
under the symbol DIMD.

HOW TO CONTACT DIAMOND MULTIMEDIA

There are many ways to reach Diamond for sales support, technical
assistance, driver updates and general information:

The Main Phone number is 408-325-7000; Fax: 408-325-7070
Product Support Voice: 408-325-7100; Product Support Fax: 408-325-7171
24-Hour Fax On Demand Service: 1-800-380-0030
America OnLine (Keyword: DIAMOND)
CompuServe (GO DMNDONLINE or GO GRAPHBVEN) [75300,3673]
Internet Web site: http://www.diamondmm.com
FTP site: ftp.diamondmm.com
For information on Diamond products: 1-800-468-5846
BBS numbers at 408-325-7080 (to 2400 baud) or
               408-325-7175 (to 14.4K baud)
 
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