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CREATIVE ANNOUNCES SHIPMENT OF STYLISH NOMAD II MG AT MACWORLD EXPO

Magnesium Clad Digital Audio Player is PC/Mac Compatible; Features Multi-Format Support, Built-In FM Tuner, Voice Recorder, and 64MB On-board Memory

MILPITAS, Calif. - July 18, 2000 - Creative Technology Ltd. (Nasdaq: CREAF), the leading provider of Personal Digital Entertainment (PDE) Solutions, today announced it has begun shipping the NOMAD II MG portable digital audio player to selected retail and e-tail outlets in the United States. The NOMAD II MG features a unique professional lifestyle design offering MP3 support with reprogrammable firmware to support future digital audio formats, software extensions, and standards. It offers consumers digital audio in style - anytime, anywhere. The NOMAD II MG is the first digital audio player on the market that allows users to do real-time recording from any FM station. It also features voice-recording capabilities and on-board memory for both the PC and Macintosh (iMac and G3) platforms.

Creative will demonstrate the NOMAD II MG at Macworld Expo, July 19-21, in New York, NY, at the Javits Convention Center in Booth #1725.

"The NOMAD II MG is the perfect Macintosh or PC compatible digital audio player for professionals seeking the most feature-rich product on the market," said Hock Leow, chief technology officer at Creative. "With the introduction of the NOMAD II MG, and the award-winning NOMAD II earlier this year, Creative is now able to provide consumers with the widest range of digital audio players on the market to suit any active or professional lifestyle."

The NOMAD II MG is encased in a compact, sleek magnesium case for extreme durability and a professional look and feel. The new digital audio player is the first Personal Digital Entertainment (PDE) Internet Appliance in the NOMAD product line to offer EAX audio technologies such as time-scaling implementation for interactive speed control up to two times faster or slower without any change in pitch during playback of voice recordings. This is a key feature for the mobile professional. In addition, the NOMAD II MG includes an FM tuner with preset support, FM tuner recording and voice-recording capabilities for storing up to four hours of dictation, messages, or personal notes. A bundled docking station provides users with hassle-free cable connection and battery recharging. The NOMAD II MG also comes with an electro-luminescent (EL) backlit LCD increasing the quality of viewing while on the go. The USB digital audio player comes with 64MB of flash memory onboard with an open SmartMedia slot for additional memory expansion that can bring the total user-accessible memory to 128MB or two hours of music. In addition to being (Secure Digital Music Initiative) SDMI-compliant (hardware-ready), the NOMAD II MG is also (Solid State Floppy Disk Card) SSFDC-compliant, making the SmartMedia interchangeable with digital cameras.

"The incredible success of Apple's extensive line of products for consumers and professional users has opened a world of opportunity for developers who want to innovate on the Mac platform," said Clent Richardson, Apple's vice president of Worldwide Developer Relations. "The Nomad II MG from Creative Labs is a world-class digital audio solution for the Mac that delivers easy and efficient portability for anyone's favorite songs."

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 is a registered trademark of Creative Technology Ltd. in the United States and/or other countries. All other brand names mentioned herein are either trademarks or registered trademarks of their respective owners and are hereby recognized as such.

Nomad is a registered trademark of Aonix and is used by Creative Technology Ltd. and/or its affiliates under license.

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