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MEDIA ALERT - Creative and California Fitness Bring X-Fi Quality Music to Fitness Enthusiasts During Workouts

5 March 2007

Creative (NASDAQ: CREAF), a worldwide leader in digital entertainment products today announced an innovative partnership with California Fitness to bring X-Fi quality music to all fitness enthusiasts during their workouts at California Fitness Clubs in Singapore. From March 2007, the Creative Xmod will be installed in all 4 California Fitness Clubs located at Orchard Road, Raffles Place, Bugis Junction and Novena Square.

Based on the award-winning X-Fi Xtreme Fidelity audio technology, the Creative Xmod will dramatically improve the overall music listening experience of California Fitness Club members, thereby allowing them to enjoy a more enriching fitness workout session.

The Creative Xmod features X-Fi Crystalizer and X-Fi CMSS-3D, two key audio-enhancing features that make your music way better. X-Fi Crystalizer upconverts MP3 music by intelligently and selectively restoring the highs and lows such as the snare drums, basses, cymbals crashes and guitar plucking that had been damaged during the compression of MP3s. X-Fi CMSS-3D expands audio for superior headphone listening so that the music completely surrounds the listener like a multi-channel speaker system instead of sounding like it is stuck between the headphones.

California Fitness members will now be able to experience the incredible X-Fi technology while working out in its dance studios and spinning rooms. Selected treadmills will also be installed with the Creative Xmod where users simply need to connect their MP3 players and earphones to the device and their music will be instantly improved to Xtreme Fidelity standard.

"We always look for innovation that can enhance our members' experience. For example, music is an important part of exercising, especially during high-energy workouts. It controls the rhythm, intensity and "feel" of your workout sessions. We are delighted to deploy Creative Technology's X-Fi system in our clubs and bring our members a richer music experience." said Rod Bennar, Vice President of Singapore & Malaysia of California Fitness.

"Over 100 million people in the world today listen to MP3 music, be it in the gym, while commuting or at home. The Creative Xmod presents fitness enthusiasts a simple solution to restore the quality of their MP3 workout mixes. This candy-bar sized device is so easy to use - no installation required, and works with most MP3 players or other audio devices." said Melvin Seah, Marketing Manager, Creative Labs Asia.

As part of the Creative-California Fitness partnership, California Fitness members are entitled to 15% off any X-Fi product from 1 - 31 March 2007. They will simply have to present their California Fitness membership pass at The CREATIVE Stores in Marina Square, Plaza Singapura and International Business Park to be eligible for the discount. In addition, California Fitness members are entitled to the following Special Buys: Creative GigaWorks T20 Speaker System at a special price of S$139.00 (U.P. S$179.00) or Creative ZEN Aurvana In-Ear Earphones at S$99.00 (U.P. S$169.00) with every purchase of a X-Fi product (limited to one special buy per X-Fi product purchase). Other terms and conditions apply.

About Creative
Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment products. 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™ portable audio and media players. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.

About California Fitness
California Fitness, established in 1996, is a wholly owned subsidiary of 24 Hour Fitness Worldwide. California Fitness is renowned for pioneering the fitness Industry in Asia. The company introduced the mega gym concept to Hong Kong with the opening of their first club in the Central district. Currently with 8 locations in Hong Kong, 6 in Taiwan, 4 in Singapore and 3 in Malaysia, and with aggressive expansion plans intended for all existing as well as new markets. California Fitness prides itself on helping members live better through health and fitness in the countries and communities that it serves. Development into new Asian countries is a major focus for California Fitness. The company strives to raise awareness of health and fitness and to improve the quality of life for all in the region.

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This announcement relates to products launched in Asia Pacific. Availability is subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Creative Xmod, Xtreme Fidelity, X-Fi, X-Fi Crystalizer, X-Fi CMSS-3D and Sound Blaster are trademarks or registered trademarks of Creative Technology Ltd. in the United States and/or other countries. All other brand or product names are trademarks of their respective owners.

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