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New Online Music Providers Announce Support For LAVA! and Showcase Top MP3 Artists

MILPITAS, Calif. - October 6, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment, today announced the availability of a free, stand-alone version of its hot new interactive music technology, LAVA! (Live Audio Visual Animation). Creative also announced today audio support for Microsoft Windows Media. The two companies will work together to add Windows Media support for an upcoming release of the LAVA! MusicVideo Player. The LAVA! MusicVideo Player is the first software solution to enable interactive 3D music videos on the Internet.

The LAVA! MusicVideo Player, which debuted at Woodstock '99 in the Emerging Artists Pavilion, was initially available only to Sound Blaster Live! customers. The enhanced LAVA! MusicVideo Player, available for download at www.LAVAmusic.com, now supports any PC-based sound card, and will soon support the Windows Media format thus making this unique entertainment experience available to all consumers with Internet access and the over 40 million users of the Windows Media player. Based on core audio technologies from Creative, the LAVA! MusicVideo Player is a key component of the company's growing family of Personal Digital Entertainment (PDE) Internet solutions.

LAVA! is the first software solution to offer interactive music video entertainment on the Internet to the mass market. LAVA! allows mainstream users to experience their MP3s accompanied by a LAVA! MusicVideo - an environment made up of 3D objects consisting of textures, images and colors that move to the music. Using a combination of sophisticated audio analysis developed at the Creative-EMU Technology Center, the LAVA! MusicVideo Player, when used in combination with a graphics card that supports Open-GL , offers music enthusiasts a new way of experiencing Internet audio and musicians a powerful medium for promoting MP3 and Windows Media content.

As opposed to streaming music videos that have bandwidth constraints and do not offer interactivity, LAVA! is a high-quality, low-bandwidth solution that allows users to interact with 3D MusicVideos while the music video is playing. Because LAVA! files are small in size, users can create music videos for emailing to friends. Amateur and serious musicians will soon be able to easily create their own customized MusicVideos to help differentiate their music, enabling them to better market their product and develop fan intimacy in new, cost-effective and compelling ways.

"LAVA! is going to do for interactive music videos what MP3 has done for music on the Internet," said Mr. Sim Wong Hoo, chairman and chief executive officer of Creative. "With the introduction of this free LAVA! MusicVideo Player to the mass market, Creative is taking a major step to fuel an entirely new dimension for consumer music entertainment beyond our traditional PC audio customers. We believe this is going to be the MTV of the Internet."

The LAVA! MusicVideo Player is the first of Creative's family of interactive music video players that currently supports MP3 audio. Users can expect future versions to support popular Internet audio and music formats such as WAV, music CD, streaming audio and Microsoft Windows Media Audio (WMA).

"Creative's LAVA! MusicVideo Player offers a compelling way to experience Internet music," said Will Poole, general manager, Marketing and Business Development, Streaming Media Division, Microsoft Corp. "Adding support in LAVA for Windows Media's CD-quality audio combines the best audio experience on the web with an innovative new way for users to visually enjoy digital music."

Top Online Music Providers Endorse LAVA!
In conjunction with its LAVA! MusicVideo Player announcement, Creative also announced key partnerships with some of the hottest Internet music providers in the world today. These popular online music stores are leveraging LAVA! MusicVideos to showcase top artists featured on their site. Users can soon download, view and interact with hundreds of LAVA! MusicVideos, each associated with MP3 tracks. These content partners include:

  • AMP3.com: www.AMP3.com
  • ArtistOne: www.ArtistOne.com
  • B Ya Self Records: www.bysrecords.com
  • Cductive.com: www.Cductive.com
  • EMusic: www.emusic.com
  • Epitonic: www.epitonic.com
  • MP3DOM.com: www.MP3DOM.com
  • SoundClick: www.SoundClick.com
  • The Digital Music Company, Inc.: www.buymp3.com and www.audiosurge.com
  • Tropia (OTC SS: SITI): www.Tropia.com

In addition to experiencing the LAVA! MusicVideo Player at Internet World, visitors to the LAVA! Web site, www.LAVAmusic.com, can also download a beta version of the LAVA! MusicVideo Player and song-specific LAVA! files from some of the most popular music content sites.

Personal Digital Entertainment (PDE) Internet Solutions
Creative's new PDE Internet Solutions category is comprised of Internet devices, Internet applications and Internet services. Creative's PDE Internet Solutions leverage the power of the PC to create enhanced audio and video entertainment experiences. Creative's NOMAD, NOMAD II, WebCam Go, and LAVA! MusicVideo Player (see separate news releases announced today) are all key components of Creative's PDE Internet solutions geared towards PC and Internet enthusiasts. Creative's family of PDE Internet solutions consists of:

  • PDE Internet Devices: Products that enhance the PC Internet experience and can function when detached from the PC
  • PDE Internet Applications: Software entertainment solutions like the LAVA! Player that enhance the entertainment experience when used in combination with Creative's Internet devices
  • PDE Internet Services: Creative plans to offer Internet services that complement both its PDE Internet Devices and applications

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

    Sound Blaster and Blaster are registered trademarks of Creative Technology Ltd. LAVA! is a trademark of Creative Technology Ltd. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

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