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CREATIVE INTRODUCES SPEAKER SYSTEMS FOR PLAYSTATION®2 EAX-Enabled PlayWorks DTT2500 Digital and PlayWorks PS2000 Offer Dolby-Digital 5.1 audio for Console Gaming, PC Gaming and Movies

MILPITAS, Calif. - May 10, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Internet solutions, today announced two new speakers systems for the highly anticipated PlayStation2, the Cambridge SoundWorks PlayWorks DTT2500 Digital and the Cambridge SoundWorks PlayWorks PS2000. The PlayWorks DTT2500 Digital and PlayWorks PS2000 are both equipped with an optical connection providing quick and easy connectivity to the PlayStation2 gaming console. The two new EAX-enabled speaker systems are not limited solely to console gaming use, but are also ideal for generating crystal-clear Dolby-Digital 5.1 home theater quality surround sound for DVD movies and multi-channel audio for games.

"The huge success of our DeskTop Theater DTT2500 Digital speakers for PC-DVD movies and games is a natural fit with the PlayStation2's ability to handle both activities. PlayStation2 users will not only experience thrilling multi-channel Dolby Digital movie sound with a PC-DVD or any set-top DVD player but they will also experience high-fidelity audio during game play on PlayStation2 consoles," said Sim Wong Hoo, Chairman and CEO of Creative Technology Ltd. "With these two new speaker systems, Creative is poised to capitalize on one of the most anticipated game consoles in recent history."

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.

Creative, the Creative logo, Sound Blaster and Blaster are registered trademarks, EAX, PlayWorks, and DeskTop Theater are trademarks of Creative Technology Ltd. Cambridge SoundWorks is a registered trademark of Cambridge SoundWorks, Inc. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

Safe Harbor Statements Under The Private Securities Litigation Reform Act of 1995 Except for the historical information contained herein, the matters set forth herein (including statements using the words or phrases "will", "we believe will", "going to" and including any guidance on future products, future marketing efforts, future effects of Year 2000 issues, and future revenues, margins, expenses, and earnings) are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. Such risks and uncertainties include, among others: potential fluctuations in quarterly results due to the seasonality of Creative's business and the difficulty of projecting such fluctuations; the vulnerability of certain markets to currency fluctuations and credit shortages; reductions in the market value of products sold by Creative, including increases in supply or declines in demand or prices for CD-ROM or DVD drives, board and chip-level products, and software products; the short product cycles that characterize most of Creative's products; the increasing proliferation of sound functionality in new products from new and existing competitors and at the application software, chip and operating system levels; the increasing assertion of patents and other litigation claims affecting Creative and/or its suppliers, in areas including 3-D graphics and audio chip designs; Creative's reliance on sole sources or near-sole sources for many of its chips and other key components and possible limitations on future availability of graphic chips, memory chips, and passive components used in Creative's products; the timely ramp, delivery and market acceptance of new products, including Creative's next generation audio, graphics accelerator, CD-ROM and DVD drives and communications products; the volatility of share prices for companies in Creative's industry and the effect of those prices or other events beyond Creative's control; the uncertainties inherent in identifying and correcting all Year 2000 issues in computer codes used by Creative and its suppliers and vendors; and other risk factors described in Creative's Annual Report on Form 20-F for fiscal 1999 filed with the US Securities and Exchange Commission. Creative undertakes no obligation to publicly release the results of any revisions to such forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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