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Creative Unveils Revolutionary Wireless Headphone Technology for ZEN Micro MP3 Players at Consumer Electronics Show

Wireless Headphone to be Offered as Accessory for Award-winning ZEN Micro MP3 Players and other Creative Products in 2005

SINGAPORE - January 7, 2005 - Creative (NASDAQ: CREAF), a worldwide leader in digital entertainment products for PC users, today announced that it will preview a new wireless headphone technology for MP3 players at the 2005 Consumer Electronics Show. Creative will preview its ZEN Micro MP3 player with wireless headphone technology based upon the Aura LibertyLink® LL888 chipset in the South Hall, exhibit #36228 in the Las Vegas Convention Center.
"The ZEN Micro has outclassed the competition with cooler looks and superior features. With the introduction of a new, revolutionary Creative wireless headphone that uses magnetic induction technology instead of the usual RF radiation genre, we can capture increasing market demand in the two hot categories of wireless technology and digital audio," said Mala Sharma, director of product marketing at Creative.

The ZEN Micro is the first product to feature the LibertyLink LL888 chipset, enclosed in the product belt clip. Future products across several different Creative product lines can also deliver the same wireless audio playback experience. The key difference for the listener using Creative products with the LibertyLink LL888 chipset in Aura's unique, patented magnetic induction communications technology for stereo audio. This technology provides a superior experience over the Bluetooth™ solutions for several reasons, including:

• Less interference than with Bluetooth solutions which operate and can interfere with other technologies also operating in the 2.4GHz band, such as WiFi, cordless phones and microwave ovens;
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  Superior battery life of up to 30 hours of continuous playtime from a single AAA battery;
• 
  No audio delay, to avoid out of sync A/V when streaming stereo from portable video players.

With Aura technology, users enjoy the freedom from headphone wires that catch on a jacket or bag, within a small space of less than six feet surrounding the listener. By confining the space for wireless transmission, the Aura technology prevents interference with other wireless solutions or other users of the same technology in confined spaces.

Creative will demonstrate the ZEN Micro featuring the Aura LibertyLink LL888 wireless technology from Thursday, January 6 through Sunday, January 9 at CES. More information on ZEN MicroMP3 player accessories will be posted in coming months to www.creative.com

About Creative
Creative (Nasdaq: CREAF) is a worldwide leader in digital entertainment products for PC users. Famous for its Sound Blaster® sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed ZEN and MuVo portable audio players. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment - anytime, anywhere.

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This announcement relates to products launched in the Asia Pacific. The product names, prices and availability are subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Sound Blaster and MuVo are trademarks or registered trademarks of Creative Technology Ltd. in the United States and/or other countries. All other brand or product names mentioned herein are trademarks of their respective holders and are hereby recognized as such.