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CREATIVE LABS' HI-QUALITY AUDIO TO BE OFFERED ON COMPAQ DESKPRO PCS

Sound Blaster AudioPCI 128 Delivers Excellent Digital Audio Quality To Compaq's Commercial Desktop Line of PCs For Internet Applications, Communications and Entertainment

MILPITAS, CA - July 6, 1999 - Creative Technology Ltd. (NASDAQ:CREAF), the world's leading provider of multimedia products for the PC, today announced that Compaq Computer Corporation (NYSE:CPQ ) will offer the Sound Blaster® AudioPCI™ 128 solution as a standard upgrade for Compaq's commercial line of Deskpro PCs. The Sound Blaster AudioPCI 128 is a custom-designed, PCI digital sound card that provides users with a high-quality audio experience in Internet audio applications, presentations, games and music. The Sound Blaster AudioPCI 128 offers broad compatibility with support for Windows® 95, Windows 98, Windows NT, DOS and Environmental Audio in Games with EAX (Environmental Audio Extensions) support.

"Developers are increasingly leveraging the availability of high-quality audio on the PC to deliver applications for Internet use, communications and entertainment that are far more compelling for both business and home users," said John Troutman, vice president of OEM Sales and Marketing at Creative. "We're pleased to see companies like Compaq leveraging our high quality offerings - like the Sound Blaster AudioPCI solutions - to provide support for these exciting new applications."

Sound Blaster AudioPCI 128
For Compaq commercial desktop PC customers, the Sound Blaster AudioPCI 128 combines a broad range of features designed to produce a stimulating and immersive audio experience. Based on the ES1373 chip, this broadly compatible solution is AC97 compliant and offers support for DOS, Windows® 95, Windows 98, Windows NT and Environmental Audio Extensions. With 128-note polyphony, multiple reverb effects, chorus and 3-D Positional audio algorithms, PC users will be impressed with the outstanding sound quality when listening to audio enabled applications or playing their favorite games. It also includes the Sound Blaster PCI standard -- ensuring near perfect compatibility with legacy DOS games without the need of the ISA bus or PCI side band signals.

Features and Benefits

• Voice over Internet Protocol (VoIP): Sound card's full duplex capability enables user to place and receive telephone calls over data networks at low ISP monthly rates. Provides voice communications for video and web teleconferencing.
• Advanced Wave Table Synthesis: 128 Voice polyphony for PCI wave-table synthesis and sound effects such as reverb, chorus bass and treble. Enhances audio presentations with sound effects and music that is more complete and closer to the actual sound.
• DirectSound Acceleration Support: Provides better overall performance for the system and the audio quality.
• Environmental Audio Extensions Support: DirectX support for 3D Positional Audio and Environmental Audio Extensions (EAX) 1.0. Top game developers continue to support EAX with over 50 titles available now and more in development.

Environmental Audio
Creative's Environmental Audio goes beyond 3D audio, adding reverb, echo and other effects consistent with the room acoustics, position of the user, source of the sound and many other cues. Environmental Audio improves any direct sound 3D audio content with intense acoustical effects that gives a sense of ambience with preset settings for a variety of room types. Top game developers are supporting Environmental Audio through Creative's widely-adopted open API - Environmental Audio Extensions (EAX™). For a complete list of titles that support Environmental Audio please check our Web site at: https://www.soundblaster.com/eaudio/games/

This announcement relates to products whose launch is 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 of Creative Technology Ltd. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such. Compaq Deskpro is a registered trademark of Compaq Computer Corporation.