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CREATIVE PACTS WITH EPITONIC.COM TO DEBUT LAVA! FILES ON THE WEB

NEW YORK - August 9, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment, and Epitonic.com, the leading source of cutting-edge downloadable music on the Net, today announced the availability of songs associated with Creative's groundbreaking interactive music technology, LAVA! (Live Audio Visual Animation). The first LAVA! enhanced songs, selected from Epitonic.com's electronica genre, include tracks from DJ Abstrakt, The Infinite Posse, and Jondi and Spesh. These tracks and more are showcased at www.epitonic.com.

"LAVA! is the ultimate visual enhancement technology for Internet music," said Mike Barnes, Internet marketing manager for Creative Labs, Inc. "Our relationship with Epitonic.com will not only give LAVA!- enabled users exposure to quality new music, but also demonstrate the first cutting-edge library of LAVA! Music-Video-3D files. The LAVA! initiative is not only about delivering the listener a radical new desktop music-video experience but also about enabling artists, musicians, DJs and on-line labels with an easy-to-use but powerful visual solution for innovative marketing and promotion. LAVA! generates a provocative and compelling visual identity or 'advertainment' which can be speedily distributed via the web in association with digital music downloads."

Creative's LAVA! technology allows for the easy customization of images in interactive 3D visual scenes that dynamically react and respond to specific audio frequency bands in real-time, making it possible for an instant music video to be created. LAVA! gives visual expression to music and allows MP3 enthusiasts, musicians, and artists to express their creativity in visual terms; changing the Internet music experience from one in which music only defines a listening experience, to one in which the music actually manifests a complete, immersive and personalized visual experience.

"Epitonic's cutting-edge, hand-picked selections, combined with LAVA!'s cool graphics, create a customized experience that is unique to the Web," said Aaron Newton, Epitonic.com's president and founder. "Delivering music and graphics directly to the individual listener is an example of how the online music industry is speeding past the offline industry and becoming its own animal."

This announcement relates to products whose launches are 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.

Sound Blaster and Blaster are registered trademarks, and LAVA! is a trademark, of Creative Technology Ltd. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

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