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CREATIVE SHIPS 100,000th NOMAD JUKEBOX

SINGAPORE - January 16, 2001 - Creative (NASDAQ: CREAF), the worldwide leader in digital entertainment products for the personal computer and the Internet, today announced that it has shipped the 100,000th unit of the NOMAD Jukebox digital audio player since its initial shipment in late summer.

"The reception for the NOMAD Jukebox has been exceptional," noted Sim Wong Hoo, CEO of Creative. "Everybody wants one! At the Consumer Electronics Show in Las Vegas last week, people formed a line all the way around our booth, waiting longer than an hour for a chance to win a NOMAD Jukebox. We showcased more than 30 potential NOMAD Jukebox styles and concepts, telling everyone to expect more innovative designs and options in the near future on a range of NOMAD Jukeboxes from lower cost to ultra high-end models. Based on our success, we expect to double our focus and efforts on the Jukebox product line."

The latest full month of PC Data sales reports, from November 2000, reveals that the NOMAD Jukebox was embraced by holiday shoppers, ranking first in that month for overall revenue generated in the digital audio player category. Unlike flash-memory based digital audio players that hold as little as one hour of content, the NOMAD Jukebox features a six gigabyte hard drive that allows users to carry their entire music collection of up to 200 hours with them anyplace, anytime.

The NOMAD Jukebox has garnered tremendous critical acclaim, including the "Product of the Year" award from etown.com, CNET "Editor's Choice" award and the prestigious "Gadget of the Month" award from PC Magazine.

This lightweight (14oz.) digital audio player, which is the size of a portable CD disc player, features a line-in for analog recording from external sources and dual line-out connections. Unlike other hardware-based solutions, the NOMAD Jukebox also includes an onboard real-time digital signal processor (DSP) for superior audio playback, EAX (Environmental Audio Extensions) Technology and customization. A Headphone-Out jack supports headphone spatialization and equalizer effects. This firmware upgradable portable digital audio player supports multiple formats including MP3, WMA and WAV file formats. The NOMAD Jukebox also supports downloadable features including new effects algorithms, new compression standards, security features, and auto playlist generators and other personal storage capabilities.

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

The Creative logo, Sound Blaster and Blaster are registered trademarks of Creative Technology Ltd. in the U.S. and other countries.

NOMAD is a registered trademark of Aonix and is used by Creative Technology, Ltd. and for its affiliates under license.

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