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EAX to Enhance NOMAD Line and New Speaker Systems Ideal For Use With PlayStation®2

MILPITAS, Calif. - May 10, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Internet solutions, today announced it has taken its highly acclaimed EAX( (Environmental Audio eXtensions) audio technologies beyond PC gaming. The new EAX branding strategy highlights the innovative new features and functionality of Creative's latest PDE products. EAX brings advanced, interactive audio and new sound to the latest generation of portable audio appliances, music applications, and Internet services. PDE products recently EAX-enabled include the NOMAD Jukebox, NOMAD II MG, as well as the Cambridge SoundWorks PlayWorks DTT2500 Digital and the Cambridge SoundWorks PlayWorks PS2000, designed to complement next-generation gaming consoles such as Sony's PlayStation2.

"EAX provides amazing real-time digital audio effects, and is well established as the premier interactive 3D-audio enhancement platform for PC games," said George Thorn, director of audio at Creative. "It is now time for us to take EAX beyond the desktop and incorporate the audio technologies we're so proud of into our PDE solutions. EAX will provide consumers with the ability to customize, shape, and interact with audio in new, exciting ways."

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 (PDE) 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). EAX provides the ability to customize, shape and interact with audio on certified PDE solutions in one or more of the following ways: EAX Audio Innovation, EAX Audio Personalization, and EAX Audio Creation.

EAX Audio Innovation
EAX takes digital audio to a higher level by bringing innovative new features and functionality to Internet-centric Personal Digital Entertainment products such as the NOMAD Jukebox. Using audio environment effects for the desktop and NOMAD Jukebox, users will hear incredibly rich, sonic enhancement of music playback.

EAX Audio Personalization
EAX lets users shape and refine the personal audio experience. Desktop audio with Sound Blaster Live! digital audio card offers the ultimate in audio control, with numerous digital audio effects provided for processing and enhancing microphone, CD, and line input audio sources. For portable digital audio devices, EAX offers advanced EQ controls and unique features such as time-scaling, providing the ultimate customization and control of the audio experience.

EAX Audio Creation
EAX extends well beyond enhancing playback of existing music. It also brings exciting new audio technologies to music creation, and can be found in revolutionary, Internet-centric musical instruments like the Blasterkey MP3, as well as in desktop music composition systems based on the revolutionary Sound Blaster Live! digital audio card.

This announcement relates to products launched in the United States of America. The product names, content, prices and availability are subject to change.

Sound Blaster and Blaster are registered trademarks and Environmental Audio, EAX, and PlayWorks 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. Nomad is a registered trademark of Aonix and is used by Creative Technology Ltd. and/or its affiliates under license.

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