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CREATIVE'S SBS-52 POWERED SPEAKERS TO BE OFFERED WITH COMPAQ PROSIGNIA COMPUTER LINE

SBS-52 Speakers by Cambridge SoundWorks® Deliver Outstanding Audio Performance to Compaq Prosignia Desktop PCs

MILPITAS, Calif. - July 06, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the renowned innovator of market-leading multimedia solutions for personal entertainment, today announced that Compaq Computer Corporation (NYSE:CPQ) is now shipping the Creative Labs SBS-52 powered speaker system with its Prosignia family of desktop PCs for small and medium businesses. Designed by the award winning company Cambridge SoundWorks, the SBS-52 powered speakers offer a fine balance of excellent sound quality, attractive design, and outstanding value.

The SBS-52 powered speaker system is an introductory-priced system that comes up big on sound quality, features and design. A 90Hz to 20kHz frequency response ensures the listener will enjoy a fine balance of sound within the entire audio frequency spectrum. Each speaker offers dual bass ports, which help deliver a tight, clear bass response. Separate large-size On/Off/Volume and Tone control knobs are conveniently located on the front of the right speaker enclosure, along with a 1/8" stereo headphone jack that automatically mutes the speakers output when the user wants to listen to audio privately.

"The SBS-52s are a perfect example of a powerful yet affordable speaker system that doesn't come up short on sound quality," said John Troutman, vice president of OEM Sales and Marketing at Creative. "We are excited Compaq has selected the SBS-52s for their Prosignia line of desktop PCs, further demonstrating Creative's commitment to offering a complete range of sound cards, graphic accelerators, multi-channel speaker systems, plus other new and emerging products and technologies".

In addition to delivering excellent sound quality, the SBS-52s are attractively styled sporting a streamlined look, and are constructed from modern, high-impact polystyrene. The SBS-52s include enough speaker cable to place the speaker enclosures up to six feet apart, giving the user flexibility when placing the speakers in their computer environment. The SBS-52 powered speaker system is ideal for small and mid-sized business applications, plus multimedia, gaming, and educational use.

This announcement relates to products whose launch 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.

Cambridge SoundWorks is a registered trademark 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.

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