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CREATIVE DELIVERS SOUND BLASTER AUDIO EXPERIENCE TO THE LAPTOP AND HANDHELD PC MARKET

New PCI Designs Offer High-Quality Digital Audio, V.90 Modem Connectivity and Support for Environmental Audio in Games Through Single Chip Solutions

MILPITAS, CA -- September 15, 1999 -- Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia products for the PC, today announced two new digital quality Sound Blaster solutions for laptops and handheld devices -- bringing Sound Blaster quality to notebooks and handheld PCs -- for the first time. Based on Creative's popular Sound Blaster AudioPCI 128 and Sound Blaster AudioPCI 64, these new single-chip solutions -- Creative Labs EV1958 and EV1938 -- offer broad industry leading compatibility, including support for DOS, Windows 95, Windows 98, Windows NT and Environmental Audio in games with EAX (Environmental Audio Extensions) support. Both solutions offer support for legacy games with industry-leading Sound Blaster 16 compatibility.

The Creative Labs EV1958 offers additional support for V.90, V.80, V.34+ and other popular modem connectivity modes. In addition the EV1958 also offers support for telephony with key features such as speakerphone with acoustic echo cancellation, answering machine and pulse and tone dialing. The Creative Labs EV1938 and EV1958 are both AC97 compliant with a SNR of 90dB. These new solutions offer the best integration of key features in low-power consumption designs -- making the EV1938 and EV1958 ideal for laptop PCs and hand held products.

Creative Labs EV1958 and EV1938
Based on Creative's Sound Blaster Audio PCI128 and PCI64, these broadly compatible solutions are AC97 compliant and offer support for DOS, Windows 95, Windows 98, Windows NT and Environmental Audio Extensions. With 64 or 128-note polyphony, multiple reverb effects, chorus and 3-D Positional audio algorithms, users will be impressed with the exceptional sound quality when listening to audio-enabled applications or playing their favorite games. They also comply with the Sound Blaster PCI standard -- ensuring near perfect compatibility with legacy DOS games. In addition, the EV1958 includes support for key telephony features with full-duplex support, a video-ready modem interface, speakerphone and more.

Availability
Creative's EV1958 and EV1938 single chip solutions are currently available for sampling.

Additional Features for the EV 1958 and EV 1938:

• DirectSound Acceleration Support: The EV 1958 and 1938 include support for DirectSound offering improved overall performance and audio quality.
• Low Power Consumption and Power Saving Features: Both solutions utilize 3.3 volt power resources, 5 volt tolerance and offer support for ACPI 1.0, PPMI 1.1 and Microsoft's OnNow. For docking applications, they offer digital docking.
• Digital I/O: Both solutions support S/PDIF digital output for compressed Dolby Digital AC-3 data to a decoder, and will also allow connection to digital speakers or other digital device for recording. An I²S input allows digital audio input from an external source, such as 2-channel decoded AC-3 from DVD decoders and MPEG-2 Zoom Video.
• Support for Environmental Audio Extensions: 3D Positional Audio via DirectSound and support for Creative's Environmental Audio Extensions (EAX) 1.0 for DirectSound, DirectSound3D and A3D. Top game developers continue to support EAX with over 50 titles available now and more in development.
• Advanced Wave Table Synthesis: The EV 1958 offers 128-note polyphony for PCI wave-table synthesis. The EV1938 offers 64-note polyphony. Both solutions offer sound effects such as reverb, chorus bass and treble. This results in music reproduction that is far more realistic.
• Sound Blaster 16 Legacy: The EV 1958 and EV1938 both offer industry-leading support for broad compatibility with MS-DOS titles, including support for thousands of legacy games.

Environmental Audio -- The Defacto Audio Platform
Creative's Environmental Audio goes beyond 3D audio, adding reverb, echo and other effects consistent with the room acoustics, position of the user, source of the sound and many other cues. Environmental Audio enhances any DirectSound 3D audio content with intense acoustical effects that provide a sense of ambience with preset settings for a variety of room types. Top game developers are supporting Environmental Audio through Creative's widely-adopted open API -- Environmental Audio Extensions (EAX). For a complete list of titles that support Environmental Audio please check our Web site at: https://eax.creative.com/gaming/

This announcement relates to products being 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.

Sound Blaster and Blaster are registered trademarks of Creative Technology Ltd. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such. Compaq, Presario and Prosignia are registered trademarks of Compaq Computer Corporation.