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MILPITAS, CA - October 10, 2001 - Creative Technology Ltd. (NASDAQ: CREAF), the worldwide leader in digital entertainment products for the personal computer and the Internet, today announced the Creative Inspire 5.1 5300 speaker system, now shipping to global retail and online stores.

"With the introduction of the new Creative Inspire 5.1 5300, we offer a great price on a 5.1 surround sound system that complements our Sound Blaster Audigy sound cards," said Sim Wong Hoo, founder and CEO of Creative. "This speaker system can produce six channels of audio from a Sound Blaster Audigy, or from a Sound Blaster Live! 5.1 sound card. In addition, the Creative Inspire 5.1 5300 delivers full 5.1 surround sound from a four-channel Sound Blaster."

The Creative Inspire 5.1 5300 speaker system is the first Creative 5.1 (six-piece) surround sound system to retail for US$99.99. The entire speaker system includes five satellites with six watts RMS each, plus an 18-watt RMS wooden subwoofer with a reinforced cabinet for strong, solid bass. The built-in amplifiers and drivers are specifically tailored for optimized Dolby® 5.1 sound quality for home theater, music and games. Customized drivers mounted on contoured satellite faceplates provide optimum sound dispersion and precise sonic imaging. Users can conveniently control the speaker system with an ergonomically designed volume control with power switch, LED indicator and front and rear balance control.

Like other speaker systems in the new Creative Inspire line, the Creative Inspire 5.1 5300 is immediately recognizable by its stylish, distinctive look. Users can customize the satellite grilles of the Creative Inspire 5.1 5300 speakers and subwoofer with optional colors available from Creative.
When combined with a Creative Sound Blaster Audigy or Sound Blaster Live! 5.1 series sound card, the Creative Inspire 5.1 5300 is capable of producing six discrete channels of sound from DVD movies or EAX® and Microsoft® DirectSound® 3D supported games. The Creative Inspire 5.1 5300 can also produce a full 5.1 sonic field from a four-channel sound card.

The Creative Inspire speaker line also includes the Creative Inspire 5.1 Digital 5700 system, with its own amplified Dolby® Digital/DTS decoder box; the Creative Inspire 2.1 Slim 2600 system, featuring a slender new look complimenting flat-panel monitors; the Creative Inspire 4.1 4400 system; and the Creative Inspire 2.1 2400 speakers. For more information about the Creative Inspire speaker systems, visit www.creative.com.

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This announcement relates to products launched in the United States. The product names, prices and availability are subject to change and may differ elsewhere in the world according to local factors and requirements. Sound Blaster and EAX are registered trademarks of Creative Technology Ltd. Creative Inspire, Sound Blaster Audigy and Live! are trademarks of Creative Technology Ltd. In the United States and/or other countries. NOMAD is a registered trademark of Aonix and is used by Creative Technology Ltd. and/or its affiliates under license. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

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