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CAMBRIDGE SOUNDWORKS STEPS UP THE DESKTOP HOME THEATER EXPERIENCE FOR DVD MOVIES AND ENVIRONMENTAL AUDIO GAMES

New DeskTop Theater 5.1 DTT2500 Digital Combines Dolby Digital Technology with High-Quality Speakers to Deliver Powerful Surround Sound Entertainment

Newton, Mass. - August 10, 1999 - Building on its success in the home theater and PC speaker industry, Cambridge SoundWorks, a wholly-owned subsidiary of Creative Technology, Ltd. (Nasdaq: CREAF), today announced the DeskTop TheaterTM 5.1 DTT2500 Digital, a high-output, high-performance, digital home theater system for use with PCs or conventional TVs. A complete Dolby Digital surround sound audio system, it allows for simultaneous playback of digital sound from movies and analog audio from a PC with no additional decoder or receiver. The DTT2500 Digital delivers powerful Dolby Digital 5.1 multi-channel sound on movies from a PC-DVD or DVD player and enhances 3D positional audio in games or music.

Based on the award winning FourPointSurround FPS2000 Digital and DeskTop Theater 5.1, the DTT2500 Digital is the industry's first solution for real-time seamless mixing of Dolby Digital bitstreams with 4-channel Environmental AudioTM through the Digital DIN connection when used with Sound Blaster Live!. It is an ideal companion for both PC-DVD movies and Environmental Audio games.

"With the DTT2500 Digital, we have redefined the state-of-the-art in PC audio," said Robert Mainiero, General Manager for Cambridge SoundWorks. "As evidenced by its current leadership position in the speaker marketplace, Cambridge SoundWorks speaker systems are clearly the systems of choice for consumers who care about high quality sound. The combination of Creative's PC-DVD products and DTT2500 Digital turns the personal computer into the entertainment center of the future."

"The DTT2500 Digital is a convergence product which combines Creative's electronic expertise with Cambridge SoundWorks' acoustic magic," said Creative's Chairman and CEO, Sim Wong Hoo. "It expands the borders of how people will and can use their computers for personal entertainment and presentation."

In addition to Dolby Digital, the DTT2500 Digital includes other useful multi-speaker surround modes: Dolby Pro Logic (from either the digital or analog input) and Creative Multi Speaker Surround (CMSS) which upmixes stereo sources to 5.1 surround output. CMSS includes Music, Movie, FourPoint and Stereo modes for the processing of any digital and analog material. Regardless of the room acoustics or the listening position, the DTT2500 Digital has been engineered to provide high-performance output even under the demands of Dolby Digital program material.

Pricing and Availability
With a target street price of only US$299.99, the DTT2500 Digital rivals that of more expensive home theater systems available today, making it virtually affordable to anyone with a DVD-equipped PC or DVD player. The DTT2500 Digital is available now through Creative's extensive network of distributors and retailers.

Additional Features and Benefits

• Compact, height-adjustable floor stands allow for "discretionary" placement and repositioning, fitting easily to the side or underneath a desk for optimum listening
• A subwoofer provides room-shaking bass, and an additional subwoofer line out may be connected to a powered subwoofer such as a Cambridge SoundWorks' BassCube for increased bass
• A decoder amplifier, with built-in 24-bit Digital-To-Analog Converter (DAC), has separate inputs for SPDIF (AC-3) Dolby Digital, Creative's four-channel Digital DIN input for connection with Sound Blaster Live!, and analog stereo front and rear channels for use with DVD movies, Environmental AudioTM and DirectSound 3D games
• Independent level controls for master volume, center, subwoofer, and surround speakers allow users the ability to easily control the speakers' balance

For more information on Creative's entire line of entertainment solutions for the PC, please visit our web site at www.creative.com.

Sound Blaster is a registered trademark of Creative Technology Ltd. in the U.S. and other countries. Cambridge SoundWorks is a registered trademark, and DeskTop Theater and FourPointSurround are trademarks of Cambridge SoundWorks, Inc. in the United States and/or other countries. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.