About Creative

According to projections made by Forrester Research, portable digital audio player sales are expected to hit 32 million units in the United States by 2003.

"When Creative first introduced the NOMAD player last year, the company announced that it would make available an entire suite of portable digital audio players and introduce its customers to exciting and revolutionary new portable audio technologies in the coming months," said Hock Leow, chief technology officer for Creative. "We have successfully delivered on that promise today with the introduction of such feature-rich products as the NOMAD Jukebox and NOMAD II MG. We are thrilled to deliver two unique and innovative products to digital audio and technology enthusiasts and look forward to continue growing the company's PDE Internet Solutions."

Safe Harbor Statements Under The Private Securities Litigation Reform Act of 1995
Except for the historical information contained herein, the matters set forth herein (including statements using the words or phrases "will", "we believe will", "going to" and including any guidance on future products, future marketing efforts, future effects of Year 2000 issues, and future revenues, margins, expenses, and earnings) are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. Such risks and uncertainties include, among others: potential fluctuations in quarterly results due to the seasonality of Creative's business and the difficulty of projecting such fluctuations; the vulnerability of certain markets to currency fluctuations and credit shortages; reductions in the market value of products sold by Creative, including increases in supply or declines in demand or prices for CD-ROM or DVD drives, board and chip-level products, and software products; the short product cycles that characterize most of Creative's products; the increasing proliferation of sound functionality in new products from new and existing competitors and at the application software, chip and operating system levels; the increasing assertion of patents and other litigation claims affecting Creative and/or its suppliers, in areas including 3-D graphics and audio chip designs; Creative's reliance on sole sources or near-sole sources for many of its chips and other key components and possible limitations on future availability of graphic chips, memory chips, and passive components used in Creative's products; the timely ramp, delivery and market acceptance of new products, including Creative's next generation audio, graphics accelerator, CD-ROM and DVD drives and communications products; the volatility of share prices for companies in Creative's industry and the effect of those prices or other events beyond Creative's control; the uncertainties inherent in identifying and correcting all Year 2000 issus in computer codes used by Creative and its suppliers and vendors; and other risk factors described in Creative's Annual Report on Form 20-F for fiscal 1999 filed with the US Securities and Exchange Commission. Creative undertakes no obligation to publicly release the results of any revisions to such forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.