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EAX-Enabled PlayWorks DTT2500 Digital and PlayWorks PS2000 Offer Dolby-Digital 5.1 Audio for Console Gaming, PC Gaming and Movies

``The huge success of our DeskTop Theater DTT2500 Digital speakers for PC-DVD movies and games is a natural fit with the PlayStation2's ability to handle both activities. PlayStation2 users will not only experience thrilling multi-channel Dolby Digital movie sound with a PC-DVD or any set-top DVD player but they will also experience high-fidelity audio during game play on PlayStation2 consoles,'' said Sim Wong Hoo, Chairman and CEO of Creative Technology Ltd. ``With these two new speaker systems, Creative is poised to capitalize on one of the most anticipated game consoles in recent history.''

The Revolutionary Cambridge SoundWorks PlayWorks PS2000

The Cambridge SoundWorks PlayWorks PS2000 is a compact, one-piece revolutionary speaker system complete with a separate sub-woofer unit that can be easily connected to various generations of gaming consoles and to support ``virtual'' AC-3 or Dolby Digital 5.1 surround sound for DVD movie and game experiences.

``This revolutionary one-piece speaker and subwoofer system is very user-friendly, one does not have to deal with multiple wires running across the room. The design is so compact and space saving that it makes an ideal personal surround speaker system in a small room,'' added Mr. Sim.

Gaming and movie enthusiasts looking for high quality audio can take advantage of the speakers' ability to re-create a 5.1 surround sound field, even from a one-piece speaker and separate subwoofer. Its built-in dual Digital Signal Processors (DSPs), using a unique patented reverse interference acoustic dipole technology, enable the one-piece speaker and subwoofer system to reproduce a highly accurate 5.1 acoustic surround sound field around the user.

Recent Review From Japanese PC User Publication

``When playing DVD titles with 5.1 channels, front and rear sound positioning was realistic. You can experience effective sound -- something that you never expected to hear from 2 speakers. Incredible sound for 2 speakers!'' -- PC User, April 2000

Cambridge SoundWorks PlayWorks DTT2500 Digital

The new Cambridge SoundWorks PlayWorks DTT2500 Digital speaker system is a high output, high performance, digital home-theater system with a complete Dolby Digital surround sound audio system with optical or coaxial SPDIF connectivity. The PlayWorks DTT2500 Digital allows users to enjoy realistic and powerful gaming sound and Dolby Digital 5.1 home-theater quality DVD movie audio.

Based on the award-winning DeskTop Theater(TM) 5.1 and DeskTop Theater(TM) DTT2500 Digital, the PlayWorks DTT2500 Digital features a built-in Dolby Digital decoder, optical and coaxial SPDIF connectivity, five compact satellites and a subwoofer. Besides supporting PlayStation2, the PlayWorks DTT2500 Digital is an ideal solution for other popular gaming consoles with Pro Logic content. In addition, the PlayWorks DTT2500 Digital is perfect for multi-channel gaming on the PC platform as it can easily be connected to the Sound Blaster® Live! audio card through the digital DIN connection for crystal-clear digital audio, or to PC audio systems via four-channel analog inputs for better 3D positional audio.

Availability

The Cambridge SoundWorks PlayWorks DTT2500 Digital and the Cambridge SoundWorks PlayWorks PS2000 will be available to coincide with the PlayStation2 release.

EAX: Sound With Vision

Originated from the award-winning Sound Blaster Live! products, EAX is a collection of powerful, innovative audio technologies. Designed by Creative's world-class audio scientists and built into groundbreaking Personal Digital Entertainment solutions, EAX is changing the way audio is experienced. EAX technologies are implemented across a range of audio hardware solutions, system software, application software and application programming interfaces (APIs).

About Cambridge SoundWorks

Cambridge SoundWorks, a subsidiary of Creative Technology Ltd., manufactures over 45 different models of home stereo, home theater and computer speakers. It is the country's first and largest factory-direct stereo company, with 26 retail stores in Massachusetts, New Hampshire, Maine, Connecticut and California and with online sales available at www.hifi.com. Information on Cambridge SoundWorks products is available at www.cambridgesoundworks.com.

About Creative

Creative Technology Ltd., a global leader in PC entertainment products, expands the power of the personal computer with Personal Digital Entertainment (PDE) Internet solutions, comprising desktop products, Internet appliances and Internet applications and services. Leveraging in-house technology, partnerships and value-added investments, Creative markets its solutions to consumers and system integrators, with worldwide distribution through traditional marketing channels, OEMs and the Internet. Creative's mission is to expand upon its leadership role in PDE, utilizing innovative technology, broadband and leading-edge designs for technically progressive consumers and entertainment enthusiasts. Explore PDE at www.creative.com.

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

NOTE: Creative, the Creative logo, Sound Blaster and Blaster are registered trademarks, EAX, PlayWorks, and DeskTop Theater are trademarks of Creative Technology Ltd. Cambridge SoundWorks is a registered trademark of Cambridge SoundWorks, Inc. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

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 which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

SOURCE: Creative Technology Ltd.