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CREATIVE LABS LAUNCHES "THE DIFFERENCE WILL AMAZE YOU" - A MULTI-MILLION DOLLAR MARKETING CAMPAIGN TARGETING MAINSTREAM PC USERS

Campaign Kicks-Off in United Artists Theaters Across the Country Before Blockbuster Summer Releases

MILPITAS, Calif. - May 26, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the renowned innovator of market-leading multimedia solutions for personal entertainment, announced today that it has launched "The Difference Will Amaze You" - a multi-million dollar marketing campaign designed to reach the mainstream PC user. The campaign gets its start with a high-energy, special effects theater ad - mixed and mastered in a THX certified theater for playback in Dolby Digital, DTS, SDDS and Dolby Surround formats. The first theater ad in this campaign is designed to utilize surround-sound technology to communicate the experience Sound Blaster Live! and FourPointSurround speaker systems bring to the PC with Creative's Environmental Audio technology.

The marketing campaign features a series of theater ads and plans include extending the theme to on-line and print media advertising starting in July with a two-page ad. The first in the series of theater ads began airing on over 1,600 screens in United Artists theaters across the country on Friday, May 21st. The theater ad will also be shown on June 4th during screenings of this Summer's blockbuster hits. Creative plans on promoting their top entertainment solutions for the desktop in theater ads to follow.

"As I'm sure theater-goers will agree, Creative's new ad delivers the excitement of the powerful multimedia technology Creative Labs brings to the PC," said Sim Wong Hoo. "We are now reaching mainstream audiences with a vivid audio and visual experience that exemplifies the thrilling entertainment available through our products."

"We're pleased to have been able to call upon award-winning talent to demonstrate the Hollywood-quality audio Creative now delivers," said Patrick Cosson, senior marcom manager at Creative. "We're aiming for 'stop everything' reactions from the theater audience and feel that high-quality theaters such as those selected to screen the current blockbuster hits are the perfect venue to show the extraordinary realism our Environmental Audio technology delivers for PC entertainment."

Production Crew: Hollywood Talent
Creative selected Pandemonium to produce the first in the series of theater ads for "The Difference Will Amaze You" campaign. Pandemonium has a long list of industry-acclaimed credits. Director, Mark Dippe' along with producer Clint Goldman and special effects producer Steve Williams have worked on industry-acclaimed productions such as the movie Spawn and have either individually or collectively worked on The Mask, The Abyss, The Flintstones, Jurassic Park and Rising Sun among others. For the music, Creative selected award-winning composer, Pete Scaturro. Pete has produced highly acclaimed theme songs for TV including The Practice and Unsolved Mysteries. Pete has also worked as a musician and producer with a diverse group of artists including George Clinton, William Burroughs and Chris Isaak.

Mastered at Skywalker Sound
The first theater ad was mastered at Skywalker Sound in a THX certified theater for surround-sound playback in Dolby Digital, DTS, SDDS and Dolby Surround formats.

This announcement relates to products available 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.

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