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CAMBRIDGE SOUNDWORKS TAKES HIGHLY-ACCLAIMED SPEAKERS TO THE DIGITAL DOMAIN

Classic Multimedia Speakers Are Re-Engineered With Digital Input for Greater Audio Clarity

Newton, Mass. - November 10, 1999 - Building on its success in the speaker industry, Cambridge SoundWorks, a wholly owned subsidiary of Creative Technology Ltd. (NASDAQ: CREAF), today announced the availability of SoundWorks Digital, a newly enhanced version of its SoundWorks three-piece multimedia speaker system. Based on the award-winning FourPointSurround FPS2000 Digital design, this digitally enhanced speaker system includes an improved wooden subwoofer for deeper and more defined bass, and a SPDIF digital audio input for crystal clear digital sound from any audio device.

The accurate, low-noise internal digital to analog conversion of SoundWorks Digital provides consumers with the best quality audio. Using custom-designed amplifiers with 22 watts of power to the subwoofer and 16 watts to the stereo satellite cubes, this speaker system utilizes Cambridge SoundWorks' highly evolved subwoofer and satellite driver designs to produce wide-range, powerful stereo audio that boasts more than 50 percent bass than the original SoundWorks. In addition, the digital input connects easily to high-performance PC sound cards, such as Creative Labs' Sound Blaster Live! family of cards, as well as to home and portable components including compact disc (CD) and MiniDisc (MD) players. The signal processing in the SoundWorks Digital is now able to take better advantage of the considerable potential of its loudspeaker and amplification components. It assures crisp, defined sound and quiet backgrounds whether the source is gaming, multimedia, web-content or music MP3 files, or even movie-playback via an on-board DVD drive.

"The speaker industry is seeing an increased demand for digital signal support in mainstream powered speaker systems, not just in high-end audio systems," said Robert Mainiero, general manager for Cambridge SoundWorks. "Cambridge SoundWorks is pleased to introduce the phenomenal new three-piece SoundWorks Digital speaker system to meet this demand and provide cost-conscious consumers with a superb audio solution."

The new SoundWorks Digital system incorporates two stereo analog inputs, providing a convenient, permanent connection for analog-only computer audio plus a second connector for portable devices including CD or MD units, or an MP3 pocket-player such as the Creative NOMAD portable digital audio player. The system ships with a pair of desktop stands for the stereo satellites - the speakers may also be mounted to the computer monitor. The cubes can also be easily wall-mounted on screws using their integral hanging slots. The compact subwoofer may be placed on the floor or in virtually any convenient location. A SoundWorks Digital control module with volume and power controls requires minimal desk space.

Pricing and Availability
The SoundWorks Digital speaker system is now available at the exceptional price of US$99 through Creative's extensive network of distributors and retailers, Cambridge SoundWorks, and www.hifi.com.

Sound Blaster and Blaster are registered trademarks and Environmental Audio, PC-DVD Encore, DeskTop Theater, 3D Blaster and Graphics Blaster 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.

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