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MILPITAS, Calif. - August 28, 2001 - Creative Technology Ltd. (NASDAQ: CREAF), the worldwide leader in digital entertainment products for the personal computer and the Internet, today introduces the PC-CAM 300, which features a bold new look and enhanced functionality. The Creative PC-CAM 300 is slated for immediate availability with an estimated street price of US$149.99.

While staying true to Creative's tradition of combining the convenience and flexibility of a portable digital camera and a desktop PC webcam into one product, the PC-CAM 300 is loaded with features such as an advanced CCD image sensor for realistic skin tones, vibrant colors and clearer video. Thanks to the added multi-mode flash, users can now take pictures in the shade or dimly lit surroundings with less worry about dark or blurred images. With 8MB of built-in memory, the camera stores up to 128 snapshots at 640x480 resolution or 255 snapshots at 320x240 resolution when the camera is detached from the PC.

The introduction of the PC-CAM 300 transforms the look and feel of Creative's traditional camera products. An exciting and ergonomic form factor allows the camera to fit comfortably into the palm.

"Users will be pleased with this organic new look, and how comfortably it fits into your hand," noted Hock Leow, chief technology officer of Creative. "This palm-size camera not only feels comfortable, but captures images with superior performance as well. With added features such as a strobe flash and an advanced CCD image capture, the PC-CAM 300 is our most compelling camera to date."

Unlike other PC cameras, the PC-CAM 300 features the ability to record up to 75 seconds of full-motion video with audio. Users will also enjoy the camera's digital voice recorder, which can record up to 34 minutes of audio.

When the camera is attached to the PC, the included PhotoExpress MCE software from Ulead will allow consumers to painlessly organize and edit video, voice and image files in an easy-to-navigate program. PC-CAM 300 users can polish up images and share them with family and friends-via email, video email, videoconference, or by uploading to a web site.

This announcement relates to products launched in the United States of America. The product names, contents, prices and availability are subject to change without notice and may differ elsewhere in the world according to local factors and requirements.

Sound Blaster is a registered trademark and Oozic is a trademark 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. Microsoft and NetMeeting are trademarks or registered trademarks of Microsoft Corporation in the United States and/or other countries. LiveSite is a registered trademark of Valadeo Technologies Corp. in the United States and/or other countries. PixAround and PixMaker are trademarks or registered trademarks of PixAround.com Pte Ltd. All other products or brand names mentioned herein are trademarks of their respective holders and are hereby recognized as such..

Sound Blaster is a registered trademark and Oozic is a trademark of Creative Technology Ltd. in the United States and/or other countries.

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