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CREATIVE BEGINS SHIPPING HIGHLY ANTICIPATED NOMAD II Portable Digital Audio Player Includes Multi-Format Support, FM Tuner, Voice Recorder, and Wired Remote

Portable Digital Audio Player Includes Multi-Format Support, FM Tuner, Voice Recorder, and Wired Remote

MILPITAS, Calif. - March 27, 2000 - Creative Technology Ltd. (Nasdaq: CREAF), the leading provider of Personal Digital Entertainment (PDE) Internet solutions, today announced that its highly-anticipated Creative NOMAD II portable digital audio player has begun shipping to selected retail and e-tail outlets in the United States. The NOMAD II is a codec-agnostic portable digital audio player offering MP3 support with reprogrammable firmware to support future digital audio formats, software extensions, and standards.

The NOMAD II is designed for the active consumer, with features that emphasize quick setup and mobility such as Universal Serial Bus (USB) support, an FM tuner, voice recorder, and a wired remote for accessing the playback controls while on the move. The new stylish-looking NOMAD II also includes an icon-based backlit LCD with scrolling text to view artist name and song title, and SSFDC (Solid State Floppy Disk Card) compliant flash memory card support in all configurations. With all of these features, the NOMAD II is small enough to fit in a shirt pocket and weighs in at a svelte 3 ounces. In addition, the NOMAD II allows consumers to download support for future codec standards and digital rights management technology, enabling the NOMAD II to play digital music in secure formats.

"With the introduction of the NOMAD II, we have raised the bar for portable digital audio players and have continued providing consumers with the ultimate portable digital audio platform for downloading digital music and audio from the Internet," said Hock Leow, chief technology officer at Creative. "Essentially, we are taking digital music to the mainstream consumer with an innovative product that can adapt with the changing landscape of Internet music."

NOMAD II Key Features:

• Programmable Portable Audio Platform: Upgradeable firmware via the Internet designed to permit future compatibility with multiple digital audio formats or software extensions.
• Universal Serial Bus (USB) Connection: Offers faster transfer rates and the ability for quick connectivity and setup to the PC.
• Memory: The NOMAD II continues to support the flash memory card standard in a variety of configurations to match any lifestyle or activity. NOMAD II memory cards are SSFDC compliant, allowing consumers the flexibility to exchange their memory cards with other devices such as digital cameras without the burden of reformatting for each use.
• FM Tuner: A popular feature among consumers now stores up to 32 preset stations.
• Voice Recording: Allows users to conveniently record voice-quality audio and upload voice recordings to the PC for easy storage and archiving.
• Design: A stylish, high-tech look with a contoured finish for easy button access and with a shape designed to easily fit in the palm of one's hand. Strengthened plastic casing and reinforced LCD screen allows for optimum durability.
• Icon-based LCD: Large screen and backlighting allows consumers high-quality LCD viewing in any environment.
• Remote Control: A custom designed wired remote gives quick access to the playback controls.
• Bass-Enhanced Stereo Backphones: Bundled with bass-enhanced stereo backphones that are contoured to fit the back of the head and optimized for high-quality sound during all activities.
• Optional Docking Station: Provides the flexibility to recharge batteries with hassle-free cable connectivity.

NOMAD II Software
The NOMAD II comes bundled with the following software:

• NOMAD II Manager Software: An intuitive, easy-to-use application for content management between the NOMAD II player and the PC.
• The Creative Digital Audio Center by MusicMatch: A special, full-version, allows users to encode, decode and archive high-quality MP3 files and Windows Media files, as well as convert an unlimited number of CD tracks from personal CD collections and catalog them according to preference. When used with Sound Blaster Live!, Creative Digital Audio Center allows MP3 content to be enhanced with Environmental Audio. Such enhanced content can be downloaded and enjoyed on the portable player.
• NOMAD Music Content CD: A compilation CD will also include more than 70 free MP3 songs from a variety of genres provided by Creative's content partners

NOMAD II Pricing and Availability
The 64MB version of the NOMAD II has begun shipping to major consumer electronics outlets nationwide for an estimated U.S. retail price of $329.99. The NOMAD II 32MB is available through online outlets at an estimated U.S. retail price of $229.

Creative is also offering a NOMAD II player with no Smart Media memory card for customers who already own compliant Smart Media. The NOMAD II player with no Smart Media memory card is exclusively available at www.creative.com and www.nomadworld.com for U.S. $99. NOMAD II compliant Smart Media cards are available at www.creative.com and www.NOMADWorld.com.

Destination NOMADWorld.com
As part of Creative's PDE Internet Services, visitors to NOMADWorld.com will find the latest tools, technologies, accessories and featured content to maximize their digital audio experience. Because the NOMAD II is programmable, NOMADWorld.com is the only site where users can download authentic NOMADWare updates to keep their player up-to-date with the latest digital audio formats, standards, and software extentsions.

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.