DIAMOND MULTIMEDIA SYSTEMS, INC. ENTERS INTO LETTER OF INTENT WITH THE
UNSECURED CREDITORS COMMITTEE TO ACQUIRE HAYES MICROCOMPUTER PRODUCTS,
INC.

SAN JOSE, Calif. -- October 2 , 1995 -- Diamond Multimedia Systems, Inc.
(Nasdaq: DIMD), a leading developer and marketer of high-performance
multimedia solutions for personal computers, today announced that it has
entered into a letter of intent with the Unsecured Creditors' Committee of
Hayes Microcomputer Products, Inc. to acquire the business and assets of
Hayes.

Hayes has been operating under Federal bankruptcy protection since November
15, 1994 pursuant to certain debtor-in-possession rules and exclusivity
arrangements under the Federal Bankruptcy Code. On August 24, 1995, Boca
Research terminated negotiations with Hayes and a previously announced
merger agreement. On October 2, 1995, the U.S. Bankruptcy Court in Atlanta
terminated the Company's exclusivity arrangements allowing the Unsecured
Creditors Committee, and others, to file a plan of reorganization with the
Court.

Diamond further noted a Chapter 11 Plan and Disclosure Statement will be
filed by the Committee with the Court on October 2, 1995. Pursuant to the
Plan, Diamond agreed to fund a maximum of $85 million in undisputed and
disputed creditor claims (including interest) and offered to acquire all
of the outstanding stock of Hayes for consideration consisting of $20
million in cash plus 1,600,000 shares of Diamond common stock; however,
the total consideration would not exceed $73 million.

The proposed transaction is subject to the negotiation and execution of
definitive documents between Diamond and the Committee, the approval of
the Chapter 11 Plan by the Bankruptcy Court, and certain other conditions,
including anti-trust approvals.

William J. Schroeder, President and Chief Executive Officer of Diamond,
noted that, "while we are very pleased with the progress we have made to
date in reaching an agreement with the Creditors' Committee, there are
considerable issues remaining, and there can be no assurance that our plan
of reorganization will be confirmed by the Court."

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]
Microsoft Network: GOTO DIAMONDONLINE
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 14.4K baud)
            or 408-325-7175 (to 28.8K baud)
 
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