3DsoundSurge Press Release: Aureal's Assets to Be Purchased by Creative Technology

Aureal's Assets to Be Purchased by Creative Technology

FREMONT, Calif., Sept. 21 /PRNewswire/ -- Aureal Inc. (OTC Bulletin Board: AURLQ) announced that on September 21, 2000, the U.S. Bankruptcy Court for the Northern District of California, Oakland Division entered the final order approving the sale of substantially all of the assets of Aureal to Creative Technology Ltd. (Nasdaq: CREAF). The sale will include settlement of all outstanding litigation claims between Aureal and Creative. Creative will pay US$28 million in cash, plus two new shares of Creative stock for every 100 outstanding shares of Aureal stock, or 208,079 shares of Creative stock. The Creative shares are valued at approximately US$4,357,174.19, based on the closing price of Creative stock on September 21, 2000. The sale agreement follows Aureal's previous announcement, on April 6, 2000, that it had filed for bankruptcy protection under chapter 11 of the Bankruptcy Code.

While the sale will provide substantial cash for distribution to the creditors and, potentially, the shareholders of Aureal, the amount and timing of the distribution has yet to be determined. The amount available for distribution to shareholders will be determined only after the amount of all claims against Aureal have been determined. Distributions to creditors and shareholders will occur only after a plan of reorganization has been submitted to and confirmed by the Bankruptcy Court. Aureal anticipates that a plan of reorganization will be filed with the Bankruptcy Court within the next 90 days. After the filing of a plan of reorganization, the plan will be submitted to creditors and shareholders for voting and thereafter to the Bankruptcy Court for its consideration.

Aureal stock is no longer traded on the OTC bulletin board. The National Quotation Bureau is currently quoting Aureal Inc. stock under the symbol AURLQ. Financial service providers that subscribe to the National Quotation Bureau can provide stock quotes.

About Aureal

Prior to the commencement of its chapter 11 case, Aureal was a leading provider of advanced audio solutions for the computer, entertainment, Internet, and professional audio markets. The company designed, built and distributed advanced audio semiconductor, audio card and software solutions for personal computers through the OEM, integrator/reseller/VAR and direct-to-customer channels. Aureal also licensed technology designed to define and improve advanced audio standards in the marketplace.

Forward-Looking Statements

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, dependence on the PC industry and on product lines based on new technologies; foundry capacity, availability and reliability; competition and pricing pressures; and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

NOTE: Aureal, the Aureal logo, A3D, A3D Pro, Aureal Wavetracing, Vortex2 SuperQuad Digital PCI, Vortex2 PCI, Vortex1 PCI, and Vortex Advantage are trademarks, and Vortex is a registered trademark of Aureal Inc. Other names may be trademarks of their respective owners.

SOURCE: Aureal Semiconductor Inc.