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Creative to Showcase New Music Experience with LAVA! Technology and NOMAD Portable Digital Audio Player

MILPITAS, Calif. - July 22, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment, announced today that it will be co-sponsoring the emerging artist stage and nightly rave in Hangar 100 at the Woodstock '99 Music & Arts Fair taking place in Rome, New York (July 23, 24, &25). Creative will showcase LAVA! (Live Audio Visual Animation), a new technology that gives real-time visual expression to Internet music on the PC desktop, and its NOMAD line of portable MP3 digital audio players. Together, Creative's new LAVA! technology and NOMAD product line offer new ways of experiencing Internet audio for music enthusiasts.

For the first time, Internet music such as MP3 songs can be accompanied by a complete customized 3D-animation containing images such as an interactive band logo, album art and band members' photographs to form a high quality 3D video collage rendered in real-time, using little additional bandwidth. Using a combination of sophisticated audio analysis and hardware accelerated graphics developed at the Creative-EMU Technology Center, LAVA! offers a new paradigm that will change the way Internet music is distributed, promoted and experienced.

The LAVA! technology will be streamed live from the performing bands on the Emerging Artist stage onto two giant video screens suspended from Hangar 100 for festival attendees to visually experience. The entire emerging artist LAVA! experience will also be featured on a live webcast through Amp3.com, the Internet's fastest-growing independent artist site.

"Creative Nomad marked our entry into the portable digital audio market and the MP3 revolution. With our new LAVA! technology, we are enhancing the internet music lifestyle by empowering users to personalize and customize their music content," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. "LAVA! promises to do for Internet music what MTV music videos did for the traditional music industry."

Creative's LAVA! technology allows for the easy creation of interactive 3D visual scenes that react and respond to specific audio frequency bands in real-time, making it possible for an instant music video to be created. LAVA! gives visual expression to music and makes it possible for MP3 enthusiasts, musicians, and artists to express their creativity in visual terms; changing the Internet music experience from one where music only defines a listening experience, to one where the music actually manifests a complete, immersive and personalized visual experience.

Creative will also be giving hands-on demonstrations of its NOMAD MP3 digital audio players for festival attendees at the Woodstock Technology Pavilion. Creative's NOMAD players have advanced features that include voice recording, an FM tuner, an LCD screen with scrolling text to view artist name and song title and rechargeable batteries. The NOMAD is available in two versions, a 64MB and a 32MB version.

"Co-sponsoring one of the world's largest music festivals is a tremendous opportunity to show music enthusiasts how technology has changed the landscape of the music industry. Woodstock attendees make up a significant portion of present and future Internet music listeners. The products and technologies we are demonstrating at Woodstock will, we think, position the Internet as an even more exciting platform for popular music going forward," said Sim Wong Hoo.

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

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