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CREATIVE'S NEW CD-RW 12-10-32 MINIMIZES BUFFER UNDERRUN WITH BURN-PROOF™ TECHNOLOGY

MILPITAS, Calif. - September 13, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Solutions, today announced the CD-RW Blaster® 12-10-32, currently shipping to online and retail outlets in North America at an estimated street price (ESP) of US$299.

With a maximum CD-R writing speed of 12X, a top CD-RW writing speed of 10X, and a CD-ROM reading speed up to 32X, the CD-RW Blaster 12-10-32 serves as a comprehensive CD creator for the digital audio enthusiast who wishes to store personalized music compilations. With storage capability for MP3, MIDI and .WAV files, the CD-RW Blaster 12-10-32 frees up valuable hard drive space by doubling as a handy storage solution.

"As more people turn to the PC for sharing and listening to music, the CD-RW Blaster 12-10-32 inspires the creation of mixes and compilations," noted Ken Fong, director of marketing for Creative. "Plus, the ability to rapidly archive important documents and files makes this a vital business tool."

Creative's latest CD-RW features new BURN-Proof technology, which curbs buffer underrun, or insufficient delivery of data to the drive from the PC. This new technology eliminates the worry of unsuccessful recording sessions caused by a slow CPU, multi-tasking, or other system-related issues.

The CD-RW Blaster 12-10-32 writes complete CD-R media in approximately 8 minutes (based on writing a 650MB disc on 12X CD-R media on a system with a minimum, sustained data transfer rate of 1,800KB/second to the drive). It stores up to 650MB of data or 74 minutes of CD audio on a single CD-R disc.

Routine backups of important data on CD-R and CD-RW discs are made simple with the Creative CD-RW Blaster 12-10-32. Distribution and sharing of files is cost-efficient and easy, with only the need for a CD-ROM drive to read the shared material.

Features and Benefits:

Enhanced IDE interface for increased performance
Internal S/PDIF-out digital audio connector
Front panel headphone jack, volume control, busy indicator and close/eject button
Drag-and-drop capability enables data transfer from PC to CD
Storage for up to 650MB of data
Offers entertainment enthusiasts storage of MP3, MIDI and .WAV files
Reads CD-Audio, CD-ROM, CD-ROM XA, CD-I, Photo CD®, CD-R, CD-RW, Video CD, CD Extra and CD TEXT

Package Software and Contents:

Ahead Software's Nero® Burning ROM CD burning software
Prassi Software's abCD packet writing software
One blank CD-RW disc
Audio cable, data cable and screws
Quickstart guide
Creative MediaRing Talk

Pricing and Availability
The CD-RW Blaster 12-10-32 is currently shipping to online and retail outlets at an estimated street price of US$299.99. More information about the CD-RW Blaster 12-10-32 will be posted to www.creative.com.

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.

Blaster is a registered trademark of Creative Technology Ltd. in the U.S. and other countries.

All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

Nero is a registered trademark of Ahead Software, Gmbh. Prassi and abCD are trademarks of Prassi Software, USA, Inc. MediaRing Talk is a trademark of MediaRing.com, Ltd. The word "BURN-Proof" is a trademark of SANYO ELECTRIC CO. LTD.

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