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CREATIVE DELIVERS DOLBY® DIGITAL-QUALITY SOUND ON THE PC

New Series of Sound Blaster Live! 5.1 Sound Cards Supports Digital and Analog Outputs in 5.1 Surround Sound

MILPITAS, Calif. - September 26, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Solutions, announced today the availability of the new Sound Blaster Live! 5.1 line of sound cards, Dolby Digital audio solutions that give today's PC user the best audio entertainment applications for music, movies, and games. Pioneering the next wave in PC audio listening, Creative's all-new Sound Blaster Live! 5.1 series provides true 5.1 multi-channel sound to consumers seeking an optimal sound experience from the PC.

As the PC transforms into an entertainment platform, Creative's audio solutions are at the heart of the sound evolution, providing entertainment enthusiasts with the ultimate in digital audio. This new line of Sound Blaster Live! 5.1 sound cards delivers true Dolby Digital 5.1-channel surround sound to consumers, allowing them to experience total sound immersion - just like at the movie theater. A superior audio experience is now available to meet varying budgets and entertainment needs, thanks to Creative's full range of Dolby approved sound card solutions. Users seeking a high-end choice for digital audio creation and playback, Internet music and power gaming will find that the Sound Blaster Live! Platinum 5.1 sound card offers a full-feature set of the most innovative applications and utilities available today. The Sound Blaster Live! X-Gamer 5.1 and Sound Blaster Live! MP3+ 5.1 sound cards address specific gaming and music needs, making 5.1 performance available on the PC to both gaming and music lovers.

"We are constantly striving to provide our customers with the richest audio experience available. The incorporation of Dolby Digital 5.1 support in our new line of sound cards ensures that audio enthusiasts will continue to receive the most innovative solutions from Creative," said George Thorn, director of audio development for Creative Labs, Inc.

"The same Dolby Digital 5.1 sound that has thrilled movie-goers all over the world is now available on the PC via Creative's new line of Sound Blaster Live! 5.1 sound cards. Creative demonstrates its commitment to provide its users with high-end audio solutions by supporting the Dolby Digital 5.1 surround sound format," said Dennis Staats, director of computer & games technology marketing for Dolby Laboratories. "We are very excited to approve this new line of sound cards allowing PC users to experience movie-quality sound on the desktop with Dolby Digital technology."

Key Features of the Sound Blaster Live! Platinum 5.1, Sound Blaster Live! X-Gamer 5.1, and the Sound Blaster Live! MP3+ 5.1: Dolby Digital 5.1 and Analog Surround Sound: Experience full 5.1 surround sound in either digital or analog output. The Sound Blaster Live! 5.1 series provides surround sound on your PC, with built in support for two-, four-, or six-speaker configurations. You will get superior Dolby Digital 5.1 sound quality by connecting to speaker solutions such as the upcoming Cambridge SoundWorks DeskTop Theater 5.1 DTT3500 Digital or the DeskTop Theater 5.1 DTT2200 (both expected to ship in October) or any Dolby Digital equipped home theater system. Dolby Digital content ensures the best audio support for next generation interactive DVD titles.

The Cambridge SoundWorks DeskTop Theater 5.1 DTT2200 is an affordable 5.1 home theater solution designed to be used in conjunction with Creative's Sound Blaster Live! 5.1 sound cards. With high quality and value, the DeskTop Theater 5.1 DTT2200 speaker system provides the ideal choice for transforming the PC into a home theater system to experience DVD movies and games.

With digital connectivity to Creative's Sound Blaster Live! 5.1 sound cards, the Cambridge SoundWorks DeskTop Theater 5.1 DTT3500 Digital - a powerful Dolby Digital home theater speaker solution - provides a high-end 5.1 surround sound environment and delivers the ultimate entertainment experience. The DeskTop Theater 5.1 DTT3500 Digital provides a complete home theater speaker solution when listening to music, watching movies or playing games.

• Quality Digital Signal Processor: The revolutionary EMU10K1 Digital Signal Processor gives you all the power you need to create crystal-clear audio files. Since processing and playback remain entirely digital, your files maintain the highest level of audio quality with settings optimized for headphones, two, four, or 5.1 speakers and home stereo systems. The Sound Blaster Live! 5.1 series provides hardware acceleration for EAX audio technology, Microsoft DirectSound 3D and DirectSound gaming, providing up to 32 3D hardware-accelerated channels, up to 64 hardware-accelerated channels, or up to 1024 voices. With support for real-time digital effects like reverb, chorus, echo, flanger, pitch shifting, vocal morpher, ring modulator, auto-wah or distortion, the power provides an overwhelming experience.
• EAX: Developed by Creative's world class audio scientists and built into groundbreaking Personal Digital Entertainment (PDE) Solutions, EAX is changing the way audio is experienced. EAX adds interactive, high-definition audio to the Sound Blaster Live! 5.1 series with 3D audio technology and 5.1 analog and digital sound, for a premium audio experience in music, movies, and games.
• Complete Internet Entertainment Solution: Creative PlayCenter 2 provides a full 320kbps encoder with up to 9X digital audio acceleration to allow you to create high quality, compact digital audio files. It allows you to rip and organize your entire music CD collection into either MP3 or WMA formats, transforming your PC into a massive digital music jukebox
• Live!Ware: The Sound Blaster Live! 5.1 line is fully supported by the Live!Ware upgrade program. This program is a direct vehicle to future product features and enhancements. Simply visit www.soundblaster.com and download the latest Live!Ware software upgrade to continuously enhance your audio experience.

This announcement relates to products launched in the United States of America. The product names, contents, prices and availability are subject to change and may differ elsewhere in the world according to local factors and requirements.

Sound Blaster and Blaster are registered trademarks and EAX, Live!Ware, Sound Blaster Live!, Live!, PlayCenter and EMU10K1 are trademarks of Creative Technology Ltd. in the US and/or other countries. Cambridge SoundWorks is a registered trademark of Cambridge SoundWorks, Inc. All other brand names and products mentioned herein are either trademarks or registered trademarks of their respective owners and are hereby recognized as such.