About Creative

CREATIVE UNVEILS SLEEK NEW DESKTOP WEBCAM AT AN INCREDIBLE PRICE

New USB Video Blaster WebCam 3 Offers Users a Better Way To Capture, Create and Communicate Via the Internet For Only $79

MILPITAS, Calif. - July 12, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment, today announced the latest addition to its family of video products, the Video Blaster WebCam 3. The new, easy to use desktop digital camera is now available at the exceptional price of only US$79. Sporting a sleek new design, the Video Blaster WebCam 3 connects to the PC via the Universal Serial Bus (USB) port and allows users to capture images and video, send video e-mail, create a personal Web site, and video conference via the Internet.

Delivering increased image quality, the Video Blaster WebCam 3 features a high resolution CMOS sensor with more than three times the resolution of previous versions. Improved lens quality and advanced capture/compression hardware provide sharper images with better color fidelity. The Video Blaster WebCam 3 also features a snapshot button that makes capturing still images even easier. This next-generation desktop digital camera is optimized for use with Microsoft Windows 98, and is Plug-and-Play compliant.

"The improved image quality, faster frame rates, more robust software bundle and distinct snapshot button make the Video Blaster WebCam 3 an essential accessory that any PC enthusiast will want to own," said Hock Leow, vice president, Multimedia Division for Creative. "As the leading supplier of entertainment products for the PC, we are pleased to offer families, hobbyists and business people high-quality, fun and easy-to-use products like the Video Blaster WebCam 3 at such an affordable price."

"The introduction of a product with a high resolution VGA image sensor at such a low price is a major step forward," said Jim Carlton, senior brand manager for Creative. "Previously, this level of image quality was only available in PC cameras above the $100 price point. Competing cameras in the Video Blaster WebCam 3 price range are still using low-resolution sensors, compromising the image quality users will experience."

The Video Blaster WebCam 3 offers new features and a full suite of software - designed to make using the WebCam easy and fun - allowing PC users to fully enhance their Internet experience. These include:

• Video Blaster WebCam Control - allows users to adjust camera settings, take snapshots, capture video, and sort all your images and motion video into an easy-to-use album
• Video Blaster 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
• Polaroid PhotoMAX by ArcSoft - a complete software package that allows users to retouch images, send video-email, print images to a color printer, and create "photo fantasies" by combining their images with fantasy backgrounds from the PhotoMAX gallery
• Microsoft Internet Explorer 5.0 - a technically advanced and feature-rich browser for surfing the Internet
• Microsoft NetMeeting - a complete Internet conferencing solution for Windows users with multi-point data conferencing, text chat, whiteboard, file transferring and point-to-point audio and video capabilities
• A gallery of HTML templates and Web Graphics - makes it easy for users to create a personal Web site, complete with live images, in minutes

Pricing and Availability
The Video Blaster WebCam 3 is now available through Creative's extensive network of distributors and resellers worldwide at an estimated street price of US$79.99. More information about the Video Blaster WebCam 3 can be found at: www.creative.com/video/webcam-3/.

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.