EXHIBIT 99.2


                        DIAMOND ENTERTAINMENT CORPORATION
                                News Announcement

                              FOR IMMEDIATE RELEASE

                                  July 23, 1998

Contact: James K.T. Lu, President
         Diamond Entertainment Corporation
         16818 Marquardt Avenue
         Cerritos, California  90703
         (562) 921-3999

Diamond Entertainment Corporation (OTC:BB:DMEC) announces terms of private 
offering of securities

                  Diamond Entertainment Corporation ("Diamond") announced today
that it has commenced a private offering of securities in conjunction with
GalaxyNet International, Inc. ("GalaxyNet"), a newly formed majority-owned
subsidiary of Diamond. The offering consists of units, each unit consisting of
20,000 shares of common stock of GalaxyNet and common stock purchase warrants to
purchase 20,000 shares of Diamond common stock at an exercise price of $.50 per
share. The units have been priced at $10,000 each; a minimum of 300 and a
maximum of 1,000 units are being offered, for gross aggregate proceeds of
between $3 million and $10 million. The offering will continue until no later
than September 30, 1998. Proceeds of the offering will be used to acquire
equipment and gaming software, obtain gaming licenses, for initial office setup,
marketing, transactional expenses, gaming reserves and for working capital.

                  The offering is being conducted pursuant to Regulation D of
the Securities Act of 1933, as amended (the "Act"). The offering is being made
exclusively to "accredited investors." The securities offered are not and will
not be registered under the Act and may not be subsequently offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Act.

                  Diamond is engaged in the distribution of video tapes for the
budget home video market. GalaxyNet has been organized to provide internet
gaming services in certain Asian countries.

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