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NOMAD Jukebox and NOMAD II MG to be Available Spring 2000

According to projections made by Forrester Research, portable digital audio player sales are expected to hit 32 million units in the United States by 2003.

``When Creative first introduced the NOMAD player last year, the company announced that it would make available an entire suite of portable digital audio players and introduce its customers to exciting and revolutionary new portable audio technologies in the coming months,'' said Hock Leow, chief technology officer for Creative. ``We have successfully delivered on that promise today with the introduction of such feature-rich products as the NOMAD Jukebox and NOMAD II MG. We are thrilled to deliver two unique and innovative products to digital audio and technology enthusiasts and look forward to continue growing the company's PDE Internet Solutions.''

Creative NOMAD Jukebox

The Creative NOMAD Jukebox is a USB, multi-format portable audio player/recorder. This new light-weight (14oz.) digital audio player, in the size of a CD disc player, features high capacity storage capabilities with 6GB of built-in storage that holds an entire music collection (over 150 albums) or up to 2,600 hours of spoken word. It features a Line-In for analog recording from external sources and dual Line-Out connections ideal for connecting a four-speaker system such as Cambridge SoundWorks, Inc.'s FourPointSurround FPS2000 Digital. Unlike other hardware-based solutions, the NOMAD Jukebox also features an onboard real-time digital signal processor (DSP) for superior audio playback and customization. A Headphone-Out jack supports headphone spatialization and equalizer effects. This SDMI-capable portable digital audio player supports multiple formats including MP3, WMA and WAV file formats. Unlike other hardware-based solutions, the NOMAD Jukebox also features an onboard real-time effects processor for superior audio playback and customization. The NOMAD Jukebox also supports downloadable features including new effects algorithms, security features, and auto playlist generators.

Creative NOMAD II MG

Like its predecessor, the Creative NOMAD, the NOMAD II MG is encased in a compact, sleek magnesium case for extreme durability and a professional look and feel. The NOMAD II MG is the first digital audio device to boast time compression/expansion implementation for interactive speed control playback of voice recording, a key feature for the mobile professional. In addition, the NOMAD II MG includes a FM tuner with preset support and voice-record capabilities for storing up to four hours of dictation, messages or personal notes. A bundled docking station provides users with cable-free desktop connectivity and recharges batteries. The NOMAD II MG also comes with an electro-luminescent (EL) backlit LCD increasing the quality of viewing anywhere it is taken.

The classic design of this portable USB digital audio player comes with 64MB of flash memory onboard with an open SmartMedia(TM) slot for additional memory that can bring the total user-accessible memory to 128MB or two hours of music. In addition to being SDMI-compliant capable, the NOMAD II MG has adjustable bit-rate and multi-codec support.

Destination NomadWorld.com

As part of Creative's PDE Internet Services, visitors to NomadWorld.com will find the latest tools, technologies, accessories and featured content to maximize their digital audio experience. Because the NOMAD II, NOMAD II MG and NOMAD Jukebox are programmable, www.nomadworld.com is the only site where users can download authentic NOMADWare updates to keep their player up-to-date with the latest digital audio formats, standards, and software extensions.

Personal Digital Entertainment (PDE) Internet Solutions Creative's PDE Internet Solutions category is comprised of Internet devices, Internet applications and Internet services. Creative's PDE Internet Solutions leverage the power of the PC to create enhanced audio and video entertainment experiences. Creative's NOMAD, NOMAD II, NOMAD Jukebox, NOMAD II MG, WebCam Go, and LAVA! MusicVideo Player are all key components of Creative's PDE Internet solutions geared towards PC and Internet enthusiasts. Creative's family of PDE Internet solutions consists of:

    -- PDE Internet Devices:  Products that enhance the PC Internet experience
       and can function when detached from the PC such as Creative's Video
       Blaster WebCam Go and the entire line of NOMAD digital audio players
    -- PDE Internet Applications:  Software entertainment solutions like the
       LAVA! Player that enhance the entertainment experience when used in
       combination with Creative's Internet devices
    -- PDE Internet Services:  Creative plans to offer Internet services that
       complement both its PDE Internet Devices and applications

About Creative

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative's products are marketed through the OEM, systems integrator and retail channels under a variety of trademarks, including the ``Blaster'' family name. With the new Sound Blaster® PCI standard, Creative has produced a solution that utilizes a combination of hardware and software for near-perfect compatibility with existing DOS and Windows titles. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development being carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa.

Safe Harbor Statements Under The Private Securities Litigation Reform Act of 1995

Except for the historical information contained herein, the matters set forth herein (including statements using the words or phrases ``will,'' ``we believe will,'' ``going to'' and including any guidance on future products, future marketing efforts, future effects of Year 2000 issues, and future revenues, margins, expenses, and earnings) are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements.Such risks and uncertainties include, among others: potential fluctuations in quarterly results due to the seasonality of Creative's business and the difficulty of projecting such fluctuations; the vulnerability of certain markets to currency fluctuations and credit shortages; reductions in the market value of products sold by Creative, including increases in supply or declines in demand or prices for CD-ROM or DVD drives, board and chip-level products, and software products; the short product cycles that characterize most of Creative's products; the increasing proliferation of sound functionality in new products from new and existing competitors and at the application software, chip and operating system levels; the increasing assertion of patents and other litigation claims affecting Creative and/or its suppliers, in areas including 3-D graphics and audio chip designs; Creative's reliance on sole sources or near-sole sources for many of its chips and other key components and possible limitations on future availability of graphic chips, memory chips, and passive components used in Creative's products; the timely ramp, delivery and market acceptance of new products, including Creative's next generation audio, graphics accelerator, CD-ROM and DVD drives and communications products; the volatility of share prices for companies in Creative's industry and the effect of those prices or other events beyond Creative's control; the uncertainties inherent in identifying and correcting all Year 2000 issues in computer codes used by Creative and its suppliers and vendors; and other risk factors described in Creative's Annual Report on Form 20-F for fiscal 1999 filed with the US Securities and Exchange Commission. Creative undertakes no obligation to publicly release the results of any revisions to such forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

This announcement relates to products launched in the United States of America. The product names, contents, prices and availability may differ elsewhere in the world according to local factors and requirements.

NOTE: NOMAD is a registered trademark of Creative Technology Ltd. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

SOURCE: Creative Technology Ltd.