About Creative

Creative Shakes Up Mp3 Market With Its New ZEN Micro 4gb Mp3 Player Priced At Only $179.99

Announces New Pricing for its Award-Winning ZEN Micro 5GB MP3 Player at $229.99 and its New 6GB ZEN Micro at $249.99

Milpitas, Calif. - February 28, 2005 - Creative (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today announced incredible new pricing for the U.S. market for its family of award-winning ZEN Micro MP3 players. Its new ZEN Micro 4GB MP3 player is priced at a market leading US$179.99 after a $20 mail-in rebate, the ZEN Micro 5GB MP3 player at $229.99, and the ZEN Micro 6GB at $249.99.

“Clearly with the success of the ZEN Micro and our shipment of more than two million MP3 players last holiday season, we have gained huge momentum and are putting our competitors on the defensive,” said Sim Wong Hoo, chairman and CEO of Creative. “We can further drive our momentum by dropping the price of our ZEN Micro MP3 players. With the introduction of the ZEN Micro 4GB MP3 player at the incredibly low price of only $179, we offer superior features and more than twice the song capacity of the 4GB iPod mini at a substantially better price. In addition, we offer the ZEN Micro in 10 different colors, giving consumers a wide range of choices, from red, light or dark blue, orange or green, to pink, purple, silver, black and white.”

Winner of the “Best of DigitalLife 2004” and “Editor's Choice” awards from CNET, Computer Shopper, PC Magazine and LAPTOP magazine, the ZEN Micro is now available in different capacities without compromising any features. The ZEN Micro 4GB MP3 player can hold up to 2,000 WMA songs; the ZEN Micro 5GB MP3 player can carry up to 2,500 songs; and the ZEN Micro 6GB stores up to 3,000 songs. The ZEN Micro family supports a wide variety of music subscription or download services such as Napster To Go, Napster, MSN Music, MusicMatch and the Wal-Mart Music Store.

The Power of ZEN Micro
Every ZEN Micro player features:

• MP3 and WMA and Music Subscription Service Support - The ZEN Micro lets the listener choose MP3 or WMA music, ripped from CDs or downloaded from online music sites;
• Micro-sized - At only 3.3" tall, the ZEN Micro is small yet powerful;
• Curved to fit - Nestles in the palm of your hand and slides smoothly into your pocket;
• Mesmerizing blue glow - Luminescent blue glow comes alive with a single touch;
• 10 electrifying colors - A full spectrum of vibrant colors to suit every style and personality;
• Up to 12-hour battery life - Enjoy your music all day long on a single charge;
• Removable, rechargeable battery - Unique ability to extend playtime by another 12 hours with a spare battery;
• FM radio and recorder- Listen to and record crystal-clear FM radio with 32 preset station settings;
• Voice recorder - Use the built-in microphone for voice recording;
• Vertical Touch Pad control - Touch-sensitive controls and intuitive vertical scrolling for easy navigation;
• Access over two million downloadable songs - Choose from the widest selection of downloadable songs on the Internet through MSN Music and other Zen-supported music services, such as Napster, MusicMatch, and the Wal-Mart music download store.

Pricing and Availability
The Creative ZEN Micro 4 GB and ZEN Micro 6GB MP3 players can be preordered now on www.us.creative.com. The new ZEN Micro 4GB MP3 player is priced at a market leading US$179.99 after a $20 mail in rebate from the suggested retail price of $199.99. The ZEN Micro 5GB MP3 player is priced at $229.99 and the ZEN Micro 6GB is priced at $249.99. For more information about Creative's family of flash, micro drive and hard drive MP3 players, ranging from the 64MB MuVo to the 60GB ZEN Xtra and the 20GB ZEN Portable Media Center, visit www.us.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.

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.