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New PC Camera Boasts Increased Memory, Voice Recording and Enhanced Image Quality

MILPITAS, Calif. - July 10, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Solutions, expands the scope of its web camera product line with its shipment of the Video Blaster WebCam Go Plus, which holds an ESP of U.S. $149.99.

Creative transformed the web cam category with its 1999 shipment of the Video Blaster WebCam Go, the first web camera capable of taking photos when detached from the PC. The newest member of Creative's family of PDE Internet appliances, the Video Blaster WebCam Go Plus again sets new precedents for affordable web cameras that double as portable digital cameras.

WebCam Go Plus users will enjoy the freedom to detach the camera from the PC and take more than 280 photos on the go in 640x480 resolution, thanks to 8MB of built-in, non-volatile memory. The expanded memory also allows for voice-recording capabilities, a new feature to Creative's WebCam line. Like its predecessors, the Video Blaster WebCam Go Plus serves numerous functions while tethered to the PC, enabling video e-mail, videoconferencing, and sharing images over the Internet. For security or simply to satisfy the user's curiosity, the WebCam Go Plus also serves as a motion-detection spycam, alerting via e-mail or pager of activity near the user's PC.

With its new focus-free lens coupled with an improved CMOS sensor- elements that enhance image quality over previous Creative WebCams- the Video Blaster WebCam Go Plus caters to the outdoor enthusiast who seeks a lightweight, easy-to-use camera to capture recreational activities. The camera's improved ergonomics ensure that photos and multi-frame "mini movies" can be taken on the go, quickly and easily.

"Creative's new WebCam Go Plus beckons to anyone who wishes to e-mail summer vacation highlights to friends and family," noted Hock Leow, chief technology officer of Creative. "The included PixAround software brings any outdoor adventure to life, by easily combining pictures to create a full, 360-degree perspective. The new voice-recording capabilities also add a considerable element of fun to taking and sharing the pictures."

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.

Video Blaster is a registered trademark of Creative Technology Ltd. in the U.S. and other countries.

All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

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