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"Our audience demands and expects that we help them download music. RioPort provides us with the opportunity to be able to do so in a secure and easy way that is SDMI compliant,” said Fred Seibert, president of MTV Networks Online. “With this agreement, RioPort is our private label download solution, aggregating content, providing music management software, and licensing and marketing the production of consumer hardware devices,” he added.

"This partnership with MTV Networks Online solidifies our leadership position at the forefront of secure digital distribution," said David Watkins, president, RioPort Division. "This partnership allows us access to the universe of music fans and consumers who want to be able to download the latest music in the easiest to use format."

J.D. Heilprin, publisher and general manager of the RioPort.com website continued, "This is the opportunity of a lifetime. Partnering with MTV Networks Online properties gives us direct access to an audience of media-savvy consumers. These are the kids that have pushed the downloading revolution to the top of the agenda. Together we plan to offer compelling new forms of digital audio programming.”

RioPort plans to create branded online audio players for each of the MTV Networks Online properties. Each of the players are intended to have the look and feel of the specific online environment where they are being accessed. All players are planned to support RioPort technology platforms. In addition, MTV will have access to RioPort's catalog of SDMI (Secure Digital Music Initiative ) compliant licensed music.

About MTV Networks

MTV Networks, a unit of Viacom Inc., owns and operates the following television programming services MTV: Music Television, MTV2:, Nickelodeon/Nick at Nite, TV Land and VH1 as well as The Suite from MTV Networks, a package of 9 digital services. MTV Networks also has joint ventures, licensing agreements and syndication deals whereby its programming can be seen worldwide.

About Viacom

Viacom Inc. is one of the world's largest entertainment and publishing companies and is a leading force in nearly every segment of the international media marketplace. The operations of Viacom include Blockbuster, MTV Networks, Paramount Pictures, Paramount Television, Spelling Television, Paramount Parks, Showtime Networks, Simon & Schuster, 19 television stations, and international theatrical exhibition operations. Viacom also owns half-interest in Comedy Central cable channel and the UPN television broadcast network and UCI., an international theatrical exhibition chain. National Amusements, Inc., a closely held corporation which operates approximately 1,300 motion picture screens in the U.S., the U.K. and South America, is the parent company of Viacom. More information about Viacom is available at the Company's Web site located at http://www.viacom.com.

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 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. And its ecommerce site is at www.estore.diamondmm.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
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.