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Creative Unveils The ZEN Micro - The Next Generation Of MP3/WMA Players - With 5GB, A Smaller Footprint And Over Twice The Song Capacity Of iPod Mini

Ten Electrifying Colors, Removable Battery, FM Radio and So Much More Set ZEN Micro Apart

SINGAPORE, October 13, 2004 - Creative (NASDAQ: CREAF), a worldwide leader in digital entertainment products for PC users, today announced the ZEN Micro, the next generation of MP3/WMA players.

"Despite the fact that our recently launched MuVo² FM 5GB MP3 player has been doing exceptionally well in several markets, I had always wanted to come out with a killer MP3/WMA product this year. By introducing the ZEN Micro we surpass all expectations for what a next generation MP3/WMA player could be by providing all that music listeners want and everything the competition doesn't deliver, all in an ultra-cool micro-sized design," said Sim Wong Hoo, chairman and CEO of Creative Technology Ltd.

The Power of ZEN Micro
The ZEN Micro surpasses previous generation players like the iPod mini by delivering what music listeners want. The ZEN Micro offers:

• 2.5 times more song capacity - The ZEN Micro with 5GB of storage capacity carries up to 2,500 (WMA, 64kbps) songs, and it lets the listener choose MP3 or WMA music, ripped from CDs or downloaded from online music sites.
• 50% more battery life - The party never stops with the ZEN Micro, which delivers up to 12 hours of non-stop music playback.
• Removable battery - Listen all day and night by just swapping out the ZEN Micro's removable battery for up to another 12 hours of music.
• Smaller footprint - The ZEN Micro is a full 6mm shorter than the iPod mini.
• Ten electrifying colors - The ZEN Micro comes in a choice of ten different electrifying colors: silver, black, red, orange, green, pink, purple, white, light blue or dark blue, to let users choose exactly what color they want.
• Intuitive vertical Touch Pad - The ZEN Micro provides intuitive vertical scrolling to allow users to move through easy-to-use menus with a gentle stroke of one thumb on the face of the player. Vertical movement of one thumb scrolls through vertical menus instead of sending users in circles. In addition, touch sensitive controls enable users to access music with one tap of the thumb on the vertical touch pad.
• Mesmerizing blue glow - Whenever the user turns on the ZEN Micro or touches the Touch Pad, it lights up with a mesmerizing blue glow on the buttons and around the face of the player, that also lights up when the ZEN Micro is charging.
• FM radio - In addition to its 2500-song capacity, the ZEN Micro has a high-quality FM radio with 32 presets to easily access favorite FM radio stations.
• Voice recording - The ZEN Micro has full voice recording capabilities so users can capture up to 10 hours of high quality digital recordings of dictations, notes or meetings.
• Ergonomic design - In addition to its cool looks, the ZEN Micro is curved to fit comfortably in the palm of one hand.
• Twice the Internet music access - Unlike the iPod and iPod mini, the ZEN Micro fully supports both WMA and MP3 files. By supporting the recently announced MSN Music service and other music services such as Napster, MusicMatch, Wal-Mart's music store and others, the ZEN Micro allows access to up to 2 million songs on-line.
• "Plays for Sure" on any Windows PC - The ZEN Micro will be updated to support "Plays for Sure," the Microsoft-supported compatibility and testing initiative which allows consumers to easily identify which digital audio players and services will work seamlessly together. As part of this program, the ZEN Micro will support Auto Sync with Windows Media Player 10.

"MSN Music is excited to see the new ZEN Micro by Creative hit the market," said Hadi Partovi, GM of MSN Music Group. "Our partnership means people can easily download the music they love from MSN Music and take it with them on a cool portable music player."

Besides offering features the iPod mini does not, the ZEN Micro provides a built-in Address Book, Calendar, and To-Do List. The player includes a belt clip that doubles as a stand, in-ear dynamic bass response earphones, a protective carrying case, a USB 2.0 cable, and an universal AC adapter. Optional accessories, including a wired remote control and spare battery will be available in the coming months at https://www.creative.com.

Pricing and Availability
The ZEN Micro is slated for November shipment to all retail outlets in Asia at an estimated street price of US$279.99. For more information, visit https://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 MuVo® and ZEN 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. MuVo, and Sound Blaster are registered trademarks of Creative Technology Ltd. in the United States and other countries. All other brand names are trademarks of their respective owners.