Diamond spins off Rio business and launches new model

Diamond Multimedia Systems (Nasdaq:MSFT) will form RioPort as an independent subsidiary, consisting of the popular Rio digital audio device line of business as well as RioPort.com, an MP3 content site for Rio users. At an event in Los Angeles Wednesday night, Diamond also unveiled the Rio PMP 500 audio player, whose 64 megabytes of memory can hold up to an hour of high quality audio, twice the previous version's capacity. Full story to follow.