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Creative Announces New ZEN Micro MP3 Players - 1GB, 4GB and 6GB Models Introduced to Meet Huge Consumer Demand

ZEN Micro MP3 Players on Display at Creative Exhibit at Consumer Electronics Show This Week in Las Vegas

MILPITAS, Calif. - January 6, 2005 /PRNewswire-FirstCall/ -- Creative (Nasdaq: CREAF - News), a worldwide leader in digital entertainment products, today announced that it will address the strong consumer demand for its ZEN Micro 5GB MP3 player by introducing 1GB, 4GB and 6GB models. The new ZEN Micro players will be previewed this week at the Consumer Electronics Show in Las Vegas.
"Since we first shipped the ZEN Micro 5GB model in November, we have experienced tremendous demand and sold out in many locations," said Sim Wong Hoo, chairman and CEO of Creative. "To meet this overwhelming demand we plan to increase our production capacity significantly this quarter. At the same time, we have introduced a variety of prices and capacities for the ZEN Micro: a 1GB flash memory-based model for only $199 and a 4GB model for only $229, which has twice the song capacity of the iPod mini and far more features for a lower price. We even introduced a ZEN Micro with 6GB capacity that can hold more than 3,000 songs."

By the end of 2004 -- just two months after its introduction -- the 5GB model of the ZEN Micro won three prestigious awards from the media, enjoyed a successful retail launch event at J&R in New York, and sold out at many retail stores during the holidays.

The Power of ZEN Micro

The ZEN Micro surpasses previous generation players like the iPod mini by delivering the features that music listeners want. The ZEN Micro in every capacity offers:

• -- MP3 and WMA support -- The ZEN Micro lets the listener choose MP3 or WMA music, ripped from CDs or downloaded from online music sites;
• -- Micro-sized -- At only 3.3" tall, the ZEN Micro is small yet powerful;
• -- Curved to fit -- Nestles in the palm of your hand and slides smoothly into your pocket;
• -- Mesmerizing blue glow -- Luminescent blue glow comes alive with a single touch;
• -- 10 electrifying colors -- A full spectrum of vibrant colors to suit every style and personality;
• -- Up to 12-hour battery life -- Enjoy your music all day long on a single charge;
• -- Removable, rechargeable battery -- Unique ability to extend playtime by another 12 hours with a spare battery;
• -- FM radio and recorder -- Listen to and record crystal-clear FM radio with 32 preset station settings;
• -- Voice recorder -- Use the built-in microphone for voice recording;
• -- Vertical Touch Pad control -- Touch-sensitive controls and intuitive vertical scrolling for easy navigation;
• -- Access over two million downloadable songs -- Choose from the widest selection of downloadable songs on the Internet through MSN Music and other Zen-supported music services, such as Napster, MusicMatch, and the Wal-Mart music download store.

Windows Media Player 10 DRM and PlaysForSure(TM) Support

Creative also announced a firmware upgrade today -- available at www.creative.com - for the ZEN Micro that makes the stylish, ultra-portable MP3 player PlaysForSure(TM) verified, including support for AutoSync and Playlists using Windows Media Player 10. PlaysForSure is Microsoft's logo and testing program that makes it easy for consumers to choose portable devices that have been tested and verified to work seamlessly a broad choice of music services including Napster, MSN Music, Musicmatch and more. Additional updates that include support for PlaysForSure online music subscription services using Windows Media DRM 10 will be forthcoming for the ZEN Micro, ZEN Touch and ZEN Xtra players, and will be available in the first quarter of 2005. Subscription services such as Napster to Go let consumers transfer an unlimited amount of music to their ZEN player for a low monthly fee.

Pricing and Availability

The 1GB model of the Creative ZEN Micro will be available in the first quarter of 2005 for only US$199.99. The 4GB model, available later this month, is priced at only US$229.99. The 5GB ZEN Micro is currently available for US$249.99. The 6GB model will be available later this month for US$299.99. For more information about Creative's family of flash, micro drive and hard drive MP3 players, ranging from the 64MB MuVo to the 60GB ZEN Xtra and the 20GB ZEN Portable Media Center, visit us.creative.com.

About Creative
Creative (Nasdaq: CREAF) is a worldwide leader in digital entertainment products for PC users. Famous for its Sound Blaster® sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed ZEN and MuVo portable audio players. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment - anytime, anywhere.

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This announcement relates to products launched in the Asia Pacific. The product names, prices and availability are subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Sound Blaster and MuVo are trademarks or registered trademarks of Creative Technology Ltd. in the United States and/or other countries. All other brand or product names mentioned herein are trademarks of their respective holders and are hereby recognized as such.