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CREATIVE ANNOUNCES SUPPORT OF SDMI OPEN STANDARD FOR PORTABLE DEVICES

MILPITAS, Calif. - July 13, 1999 - Creative Technology Ltd. (Nasdaq: CREAF) announced today its intention to support the Secure Digital Music Initiative (SDMI) open standard in future versions of its highly-anticipated Creative NOMAD line of portable digital audio players. The specification, adopted in draft by SDMI at its June 23-25 meeting, underwent a final editorial review and was adopted at a meeting in Los Angeles on July 7-8. SDMI's members include more than 110 representatives of the music, consumer electronics and information technology industries.

Leveraging its more than 20 years of expertise in industry-leading digital audio technology, the Creative NOMAD portable players offer consumers a new way to download, transport and playback digital audio. Creative NOMAD players are offered in a solid-state, highly compact, magnesium case - designed to offer Internet audio and music enthusiasts a high-quality portable experience for digital music and audio.

"The ultimate goal of SDMI is to provide consumers with wide selection and convenience in digitally distributed music. This is an evolutionary process that Creative Labs supports and we believe consumers will find value in SDMI-compliant products when there is a wide availability of SDMI content," said Hock Leow, vice president of the multimedia division at Creative.

Creative has been an active member of SDMI since its inception in December 1998. Creative is working with SDMI to help develop and implement the recommendations of SDMI and create a standard for digital audio distribution that is acceptable to the recording industry as well as the PC industry and Internet community.

This announcement relates to products whose launches are 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.

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