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QDesign's MP3 codec integrated into future RioPort Audio Manager Software

``QDesign is one of the most innovative providers of audio compression technologies,'' said Don Spencer, Director of Engineering for RioPort Inc. ``Our technology partnership with QDesign ensures that the RioPort products continue to benefit from the latest advances in on-line digital audio.''

The first of RioPort's products to include the QDesign MP3 technology is the Rio Audio Manager software application, designed to enable users to easily search for and acquire, create, organize and playback their favorite music or spoken audio programming.

``RioPort has been a pioneer in the on-line digital music industry,'' says Richard J. Beaton, president and CTO of QDesign. ``As the industry advances and the demands on compressed audio formats become more sophisticated, compression technologies, such as MP3, will play an increasingly important role. QDesign's partnership with RioPort matches technology strength with market leadership, promising to deliver innovative new applications for digital music consumers.''

The QDesign MP3 technology is a highly optimized implementation of the ISO (International Standards Organization) MPEG (Moving Pictures Experts Group) standard for MP3 (ISO/IEC 11172-3 and 13818-3). Available as a cross-platform (Windows and MacOS) software development kit, the QDesign MP3 solution brings high-quality, high-performance MP3 encoding and decoding to application developers.

About RioPort, Inc.

RioPort, Inc. is redefining digital audio by delivering an integrated platform for acquiring, managing and experiencing music and spoken audio programming from the Internet. RioPort delivers an extensive selection of digital music and spoken audio programming through its RioPort.com digital audio gateway, full content management with its Rio Audio Manager software and cutting-edge playback solutions with its Rio brand players, which are licensed to third-party companies. Company headquarters are in San Jose, Calif., where its business development, engineering and marketing teams are located. RioPort's artist relations, content aggregation and online creative team is based in Los Angeles, and its portable player design team is based in Korea.

About QDesign

QDesign Corporation has been delivering state-of-the art audio solutions to the broadcast and new media industries since 1995. The Company introduced the world's first MPEG-2 stereo compression software in October 1996, making available for the first time, high-quality, high-performance MPEG sound to all broadcast and studio professionals. In January 1998, QDesign launched the QDesign Music Codec as the Internet audio solution for QuickTime 3, bringing to audio and multimedia professionals ``Audio Product of the Year'' for 1999 according to New Media Magazine. Last month, the Company announced its own implementation of MP3, the most popular format for on-line music download. QDesign's codec technologies appear in hardware processors, digital audio production, automation and distribution systems as well as professional and consumer multimedia software. For additional information, please visit the QDesign website at http://www.qdesign.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 PC's and through the Internet. Products include the Rio series of Internet audio appliances, the Stealth and Viper® series of video accelerators, the Monster series of 3D gaming accelerators, the Fire series of professional graphics accelerators, the Supra® 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.

NOTE: HomeFree, Monster 3D, Rio, Shotgun, SpeedStar and SupraSonic are either trademarks or registered trademarks of Diamond Multimedia Systems, Inc. Monster is a registered trademark of Monster Cable used under License. Viper 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.

CONTACT: John Rowe of QDesign Corporation, 604-688-1525, ext. 34, or jrowe@qdesign.com. 

SOURCE: QDesign Corporation