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RioPort Platform Will Offer Popular New Digital Music to Consumers

“Universal Music Group’s support of the RioPort platform is great news for digital audio enthusiasts worldwide,” said David Watkins, president of RioPort, Inc. “RioPort and Universal will work closely together to integrate and promote Universal’s music content with our RioPort.com web site and SDMI compliant Rio portable digital audio players. We hope that our agreement with Universal is one of many that will deliver popular music content to RioPort customers. We expect Universal’s content to be available in the winter.”

Larry Kenswil, president, Electronic Commerce and Advanced Technology, Universal Music Group comments, “UMG will support our artists by providing the broadest and deepest reach for their music. We encourage SDMI standards and are happy that RioPort is one of the first to announce a compliant device.”

Both RioPort and Universal are supporting InterTrust as a preferred provider of digital rights management technology to ensure the protection of content copyright holders. Early on, RioPort partnered with InterTrust and Reciprocal to ensure the security of content delivery through its RioPort.com site, Rio Audio Manager software and Rio brand portable playback solutions.

“Our deal with Universal Music Group recognizes that the Internet is becoming a viable distribution system for the delivery of digital content,” said J.D. Heilprin, general manager and publisher of RioPort.com. “Universal Music Group is the world’s largest music company and having access to their content assures RioPort and its network of affiliate sites, a tremendous offering of music tracks from leading artists as well as popular catalog content.”

Universal Music Group will be integrating content through Rio Search, RioPort’s powerful search engine, allowing consumers to access, purchase and download popular content not previously available in digital content through the www.rioport.com website, as well as affiliate partner sites. Additionally, consumers will be able to enjoy this new content in their own environments without being tied to their PC by using Rioport-compatible players, such as the new SDMI-compliant Rio portable music players expected to ship later this year.

The RioPort.com site delivers broad access to a vast selection of legitimate digital music and spoken audio content. In addition to Universal, RioPort is in talks with other major content providers to secure a range of popular music for its customers. Currently, consumers can find hundreds of links to digital audio content aggregated from the best sources on the Internet on the RioPort.com site. Content is intuitively organized throughout the site, making it quick and easy for fans to find exactly what they are searching for.

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 RioPort compatible players. Company headquarters are in San Jose, Calif., where its business development, engineering and marketing teams is 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.

Universal Music Group

Universal Music Group is the world's leading music company with wholly-owned record operations or licensees in 59 countries around the world. Its businesses also include Universal Music Publishing Group, one of the industry's largest global music publishing operations, and Universal Concerts. Universal Music Group consists of record labels A&M, Blue Thumb, Decca Record Company, Def Jam, Deutsche Grammophon, Geffen, GRP, Impulse!, Interscope, Island, MCA, MCA Nashville, Mercury, Mercury Nashville, Motown, Philips, Polydor, Universal, and Verve as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. Universal Music Group is a unit of The Seagram Company Ltd., a global entertainment and spirits and wine company.

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 digital audio portal site is at www.rioport.com.

How to Contact Diamond Multimedia

There are many ways to reach Diamond for sales support, technical assistance, driver updates and general information:
Internet Web Site: www.diamondmm.com and www.rioport.com
E-Commerce Site: www.estore.diamondmm.com
Diamond Multimedia’s Headquarters and Multimedia Division: 408-325-7000; Fax: 408-325-7070
Communications Division (Supra brand modems) Main Phone Number: 360-604-1400; Fax: 360-604-1401
European Division (Germany): +49-8151-266-0; (UK): +44-1189-444400; (France) +33-1-55381600
Korean Office (Seoul): +82-2-2185-3388; Fax: +82-2-501-7522
Japanese Office (Tokyo): +81-3-5695-8401; Fax: +81-3-5695-8403
ASEAN Office (Singapore): +65-353-9511; Fax: +65-353-9510
Hong Kong Office: +852-2262-9518; Fax: +852-2262-9555
Australian Office (Sydney): +61-2-9460-2355; Fax +61-2-9460-2360
Latin America Office (Miami): 305-593-8777; Fax: 305-593-2779
Mexico Office (Guadalajara):523-110-1144; Fax: 523-110-0744
Product Support (Voice), United States: 541-967-2450; Europe (Germany) +49-8151-266-330; Europe (UK) +44-1189-444444; Europe (France) +33-1-55381616; TDD/TTY Support 541-967-2451
Product Support (Fax), United States: 541-967-2401; Europe (Germany) +49-8151-266-331; Europe (UK): +44-1189-444445; (France) +33-1-55381601
Pre-sales Information: 1-800-468-5846
24-Hour Fax-On-Demand Service: 1-800-380-0030
Investor Relations: 408-325-7476; 1-888-474-3463 (U.S. and Canada)
FTP site: ftp.diamondmm.com
BBS: Europe (Germany) BBS at +49-8151-266333 (to 28.8 Kbps) or +49-8151-266334 (ISDN); Europe (UK) at +44-1189-444415 (to 33.6 Kbps)

###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. 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.