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CREATIVE AUDIO SOLUTIONS OFFERED IN HP PAVILION HOME PCs Sound Blaster Live! Value, FPS2000 Digital and Sound Blaster AudioPCI 128 Bring Digital Audio to HP Pavilion Home PC Customers

MILPITAS, Calif. - August 8, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Solutions, today announced that Hewlett-Packard Company (NYSE: HWP) will offer the Creative Sound Blaster AudioPCI 128 in its full range of HP Pavilion home PCs in both mainstream retail and BTO (build-to-order) products. The Sound Blaster Live! Value and Cambridge SoundWorks FourPointSurround FPS2000 Digital, the premier four channel digital speaker solution from Creative, will also be offered as an upgrade on specific BTO HP Pavilion PCs. Both the Sound Blaster Live! Value and the Sound Blaster AudioPCI 128 offer broad compatibility with support for Windows 95, Windows 98, Windows NT, Windows 2000, MS-DOS and EAX enhanced game titles.

"We are excited to provide a choice of audio solutions to customers like HP," said John Troutman, vice president & general manager of Creative Labs, Malvern. "Providing multiple solutions ensures that we can offer gamers, Internet users, and audio enthusiasts the audio card that is right for them."

These design wins showcase Creative's technological strengths and flexibility to continue offering configurable audio products to an expanding market of PC customers. Sound Blaster AudioPCI 128 will be a standard add-in on the entire HP Pavilion line of home PCs. Sound Blaster Live! Value will be offered through HP's build-to-order program, and Cambridge SoundWorks FourPointSurround FPS2000 Digital will be offered as an upgrade to customers who purchase Sound Blaster Live! Value.

"Creative's outstanding audio cards will bring a new level of quality to our customers," said Sam Szteinbaum, business manager for HP's North America Consumer Computing Organization. "This alliance emphasizes our ability to provide consumers with the best audio products available."

The Creative Sound Blaster Live! Value improves existing audio content with EAX audio technologies for exciting new experiences in music, entertainment and games. The Sound Blaster Live! Value offers full support for industry standards such as EAX enhanced game titles.

FPS2000 Digital is a four channel digital speaker solution designed with both the audio enthusiast and hardcore gamer in mind. FPS2000 Digital delivers digital 3D positional audio with Creative's EAX enhanced game titles and Microsoft's DirectSound3D. DVD, MP3, and music CD titles will benefit from crystal clear highs and room shaking bass. FPS2000 Digital is currently the only digital speaker solution available from HP.

The Creative Sound Blaster AudioPCI 128 provides high quality digital audio on the HP Pavilion home PCs. A 2-Watt stereo amplifier provides sound for passive speaker systems, and a standard headphone and lineout jacks allow for easy connectivity to multiple output sources including powered speakers. 2, 4, and 8-MB software wavetable sample sets combined with the Creative Advanced Synthesis Engine and 128-voice polyphony provide near realistic MIDI playback. An autosensing lineout jack allows users to connect either analog or digital speakers. The lineout jack will automatically switch to the proper output type by sensing the type of connector used (stereo for analog or mono for digital).

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.

Blaster, Sound Blaster, 3D Blaster, Live!, and Environmental Audio are registered trademarks of Creative Technology Ltd. in the U.S. and other countries. Cambridge SoundWorks is a registered trademark of Cambridge SoundWorks, Inc.

EMU10K1 is a registered trademark of E-mu Systems, Inc. in the United States and/or other countries.

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

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