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Strategic Partnerships Complement Creative's PC Audio & Internet Expertise; Pave Way for Aggressive Entry Into Portable Digital Audio Market

NEW YORK - March 8, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the renowned innovator of market-leading multimedia solutions for personal entertainment, today announced the formation of strategic partnerships with some of the leading providers of digital audio content on the Internet. GoodNoise Corporation, MP3.com, Audible, Inc., audiohighway.com, Audio Explosion, Inc., songs.com, SINC Recordings and www.BigHeavy World.com are the first of many such providers selected by Creative to provide a myriad of digital audio and music content via the Internet and on CDs bundled with Creative's new Project Nomad line of portable digital audio players. These partnerships were announced Saturday at a press conference at the 1999 New York Music & Internet Expo.

Emphasizing its commitment to deliver the ultimate selection of "quality" digital audio content to owners of its newly announced Project Nomad line of portable digital-audio players, Creative has solidified strategic partnerships with the top providers of music and spoken-word audio content and software. By combining its PC audio prowess and worldwide marketing muscle with one of the most impressive selections of emerging digital audio content, Creative will help accelerate the broad acceptance and adoption of digital music and audio distribution on the Internet.

"In line with the company's newly-announced Personal Digital Entertainment strategy, Creative will deliver next-generation, compact, affordable portable digital audio that enables users to download a variety of content from the Internet," said Hock Leow, vice president of the Multimedia Division of Creative. "With our partners announced today, Creative has amassed one of the broadest arrays of digital audio content available."

GoodNoise - A leader in the rapidly expanding market for downloadable music, GoodNoise has emerged as one of the premier Web sites for sampling and purchasing music in the MP3 format. GoodNoise.com features an extensive catalog of music and provides users a simple, convenient way to sample, purchase and download songs or albums from emerging artists and established independent record labels such as Rykodisc and spinArt.

MP3.com - MP3.com in an all-in-one Web site that has rapidly become the ultimate source for digital music downloaded from the Internet. 200,000+ visitors come to MP3.com each day to download music from a variety of genres. In addition to offering the latest in downloadable digital music, MP3.com offers up-to-date news and information on what's happening in and around the MP3 community.

Audible, Inc. - Audible.com houses thousands of hours of spoken-word content and offers a broad array of business programming, including management- and industry-specific audio journals, newsletters, audiobooks, news programs, conference proceedings, and lectures as well as essential investment advice and commentary. Audible's general programming is segmented across 80 content categories including fiction, history, self-help, spirituality, humor, and more.

audiohighway.com - audiohighway.com is an Internet-based information and entertainment company that has built one of the largest libraries of free audio content for consumers on the Internet. Consumers visiting the company's Web site, www.audiohighway.com, can access thousands of hours of audiobooks, music, news, entertainment, education and information selections in a number of Internet audio formats (including MP3 and the company's own AudioWiz) through eight audio channels.

Audio Explosion, Inc. - Audio Explosion is a start-up company based in San Francisco that is dedicated to leveraging the power of the Internet to create new markets for music and new experiences for music fans.

Audio Explosion creates technology to solve the problems associated with music-on-demand systems. Audio Explosion's products are compatible with emerging technology standards and are extendible for integration with partner company solutions. The company was formed by a team of technologists, interactive music veterans and entrepreneurs and has been funded by private investors. Audio Explosion can be reached at www.audioexplosion.com or via e-mail at info@audioexplosion.com.

songs.com - songs.com is the Web address of more than 300 professional, independent musicians. Formed in 1995 and based in Nashville, the roster includes some of the most accomplished songwriters in the business, presented in a variety of styles, ranging from solo acoustic guitar and vocal to fully orchestrated pop, Americana, blues, rock and R&B.

www.BigHeavyWorld - www.BigHeavyWorld.com is an expanding independent record label and guerrilla promotional enterprise that's been bringing the explosive music of Burlington, Vermont to the Internet since 1996 with live concert netcasts, streaming audio, MP3 tracks, & more.

SINC Recordings - SINC recordings is an experimental electronic project based in San Francisco, focused on melding technology and art. By merging new developments and abstract viewpoints, the sinc crew constantly works to push whatever envelope forces its will on them. Their Web site is www.izmedia.com.

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative's products are marketed through the OEM, systems integrator and retail channels under a variety of trademarks, including the "Blaster" family name. With the new Sound Blaster PCI standard, Creative has produced a solution that utilizes a combination of hardware and software for near-perfect compatibility with existing DOS and Windows titles. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development being carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa.

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