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Creative Selected by NVIDIA as Premier Launch Partner for 3D Blaster Annihilator 2 Ultra

MILPITAS, Calif. - August 14, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Solutions, today announced the 3D Blaster® AnnihilatorTM 2 Ultra graphics accelerator, slated to ship to online and retail outlets in October, 2000. The Annihilator 2 Ultra will hold an estimated street price (ESP) of US$499.

"We're pleased to be selected by NVIDIA as the strategic partner for Creative's premier graphics solution," noted Steve Mosher, vice president of graphics business for Creative. "We've been working closely with NVIDIA to deliver the first product to market, as we know that true core gamers are eagerly anticipating its arrival."

"We are excited to be launching GeForce2 Ultra with our partner Creative Labs," added Jeff Fisher, Executive Vice President of Sales for NVIDIA. "Their broad distribution SI, OEM and retail presence will bring GeForce2 Ultra to users worldwide."

Targeting the extreme gamer, the Annihilator 2 Ultra is based on the NVIDIA GeForce 2 UltraTM, the world's fastest Graphics Processing Unit (GPU). The Annihilator 2 Ultra boasts 64MB of high-speed Double Data Rate (DDR) memory, effectively operating at an awe-inspiring 460 MHz. Touting massive fill rates of up to one Gigapixel and two Gigatexels per second and the ability to process complex pixel operations, the accelerator can deliver full motion gameplay with visual realism at resolutions beyond 1600 x 1200. Featuring second-generation Transform and Lighting (T&L) engines, the Annihilator 2 Ultra is capable of producing 31 million triangles per second-, enough processing power to handle the polygon complexity of compelling models, scenes and environments. This combination of features renders the Annihilator 2 Ultra Creative's fastest gaming platform to date.

Pricing and Availability:
The 3D Blaster Annihilator 2 Ultra will be available online and in retail outlets in October 2000 at an ESP of US$499.

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.

3D 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.

Certain statements in this press release, including the statements relating to NVIDIA's performance expectations for NVIDIA's family of products and expectations of continued revenue growth, are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, manufacturing and other delays relating to new products, difficulties in the fabrication process and dependence of NVIDIA on third-party manufacturers, general industry trends including cyclical trends in the PC and semiconductor industries, the impact of competitive products and pricing alternatives, market acceptance of the Company's new products, and NVIDIA's dependence on third-party developers and publishers. Investors are advised to read the NVIDIA's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Factors Affecting Operating Results," for a fuller discussion of these and other risks and uncertainties.

Notes to Editors: GeForce and GeForce2 GTS should be written with an uppercase G and F, all other letters lowercase, and a space between GeForce and 256 as well as a space between GeForce2 and GTS. GTS is ALL CAPITALS. The recommended format for Vanta and Quadro is title case. The recommended format for NVIDIA, RIVA 128, RIVA 128ZX, RIVA TNT and RIVA TNT2 is ALL CAPITALS.

NVIDIA, the NVIDIA logo, RIVA TNT, RIVA TNT2, Vanta, Quadro, and GeForce 256 are trademarks of NVIDIA Corporation.

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