About Creative

CREATIVE INTRODUCES PORTABLE WEBCAM GO

New PC Camera Provides Real-time Internet Images and Detaches to Allow Consumers to Capture Images On-the-Go

MILPITAS, Calif. - October 6, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment, today introduced the first ever portable PC camera - the Video Blaster WebCam Go. A key component of Creative's Personal Digital Entertainment (PDE) Internet Solutions, the WebCam Go is an innovative, easy-to-use Internet video camera that lets PC and Internet enthusiasts capture digital images on-the-go when detached from the PC. In addition, WebCam Go offers all of the benefits of a traditional PC-based Internet camera including the ability to send video e-mail, set up a spy cam, create and design personal Web sites, and the ability to video conference live via the Internet.

With its built-in 4MB of memory, light compact design and detachable camera with viewfinder, WebCam Go has an accessible street price of $149.99, and is available in time for the holiday season. The WebCam Go offers all of the advantages of a traditional PC camera and can also function as a portable digital camera when unplugged from the PC. WebCam Go delivers high-quality features that PC enthusiasts have come to expect from Creative, including crisp resolution, a plug-and-play USB connection and flexible, and feature-rich software applications that are simple and easy to use. Whether it's taking snapshots of a family vacation, capturing images at a holiday party or posting photos of an auction item on-line, the WebCam Go is the ideal solution for PC and Internet enthusiasts.

"The introduction of the WebCam Go marks the beginning of a new era for PC enthusiasts who want a PC camera that can also capture exciting digital images on-the-go," said Sim Wong Hoo, chairman and chief executive officer of Creative. "As the leading supplier of entertainment products for the PC, we know what users are looking for to enhance their use of the Internet - innovative, fun, portable and easy-to-use products like the WebCam Go - at an affordable price."

Unmatched in ease-of-use, the WebCam Go is a cost-effective, simple solution that captures valuable moments for use in a variety of applications. It also offers a plug-n-play set-up with USB connectivity, eliminating the need for a power source or extra connection cables. The WebCam Go stores images in Web-ready JPEG format at 640x480 resolution to allow effortless uploading to the Internet. On the PC, the integrated control panel allows consumers to easily preview images before using Windows' drag-and-drop feature to store them in an album, place them in an application or delete them.

WebCam Go is Loaded with Features
The WebCam Go is ideal for Internet enthusiasts interested in an easy-to-use portable solution. Its combination of features is unrivaled by any PC camera. These features include:

• Portability- the camera can detach from the PC and capture images in multiple modes
• Built-in Memory - 4MB of memory which stores in excess of 90 images in 640x480 VGA resolution or more than 200 images at 320x240 resolution without the need for diskettes or memory cards
• Carrying Case - a rugged RhinoSkin carrying case protects the portable camera on the move
• Multiple Modes - operates in three modes when the camera is detached from the PC: Single Exposure mode, self-timer mode and Multi-Exposure for capturing images in rapid succession or for capturing short video clips
• Extra Long Battery Life - two AAA alkaline batteries are good for up to 300 exposures
• Polaroid PhotoMAX by ArcSoft - a complete flexible software package that allows users to retouch images, send video-email, print images, and create "photo fantasies" by combining their images with fantasy backgrounds from the PhotoMAX gallery
• WebCam Control - allows users to adjust camera settings, take snapshots and capture both still images and motion video into an easy-to-use album. It makes Web publishing easy with a collection of professionally designed Web templates and graphics.
• WebCam Monitor - an easy-to-use application for recording video, setting up a security camera or publishing your own Web site, including support for FTP uploads via either dial-up or "always on" Internet connections
• Microsoft Internet Features - one of the Internet's leading browsers, Microsoft Internet Explorer 5.0, lets users surf the Internet, and Microsoft NetMeeting conferencing solution enables multi-point data conferencing, text chat, whiteboard, file transferring and point-to-point audio and video capabilities
• Sleek Compact Design - designed for easy portability anytime and anywhere

Pricing and Availability
The WebCam Go will be available in time for the holiday season through Creative's extensive network of distributors and resellers worldwide at a suggested retail price of US$149.99. More information about the WebCam Go can be found at: www.creative.com/video/WebCam-Go.

Personal Digital Entertainment (PDE) Internet Solutions
Creative's new PDE Internet Solutions category is comprised of Internet devices, Internet applications and Internet services. Creative's PDE Internet Solutions leverage the power of the PC to create enhanced audio and video entertainment experiences. Creative's NOMAD, NOMAD II, WebCam Go, and LAVA! MusicVideo Player (see separate news releases announced today) are all key components of Creative's PDE Internet solutions geared towards PC and Internet enthusiasts. Creative's family of PDE Internet solutions consists of:

• PDE Internet Devices: Products that enhance the PC Internet experience and can function when detached from the PC
• PDE Internet Applications: Software entertainment solutions like the LAVA! Player that enhance the entertainment experience when used in combination with Creative's Internet devices
• PDE Internet Services: Creative plans to offer Internet services that complement both its PDE Internet Devices and applications

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

  Video Blaster is a registered trademark of Creative Technology Ltd. WebCam Go is a trademark of Creative Technology Ltd. All other marks are the property of their respective owners.