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CREATIVE'S NEW 32MB 3D BLASTER SAVAGE4 UNLEASHES FIERCE GRAPHICS AT A BREAKTHROUGH PRICE

32MB Card Offers Stunning Visual Quality at Spectacular Price of $129.99

MILPITAS, Calif. - March 1, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia hardware for the PC, further penetrates the graphics card market with the introduction of its 3D Blaster Savage4, the latest addition to Creative's award-winning 3D Blaster family. Designed with the budget-conscious PC gamer in mind, the 3D Blaster Savage4 is available at retail for the breakthrough price of US$129.99.

Based on S3's Savage4 PRO graphics controller, Creative's new 3D Blaster Savage4 delivers spectacular performance and stunning visual quality using S3's patented S3TC texture compression. The 3D Blaster Savage4 offers support for PCI, AGP2X and AGP4X bus architectures, true 32-bit 3D rendering, a full 128-bit 3D graphics engine and dual texture 3D rendering pipeline to enhance gameplay. In addition, 3D Blaster Savage4 features 32MB of SDRAM, a 300MHz RAMDAC, and hardware-assisted DVD, all supported by Creative's own drivers and utilities.

"We have come to a turning point in the graphics industry where gamers and developers are now directing their attention to image quality," said Steve Mosher, vice president, graphics business for Creative. "The introduction of the 3D Blaster Savage4 marks the beginning of a distinct transition for the 3D graphics business as we move beyond raw speed to satisfy the eyes' need for better image quality."

The 3D Blaster Savage4 is a dual texture engine capable of simultaneously processing and combining two textures, allowing software developers the ability to create realistic, real-time visual effects including bump mapping, environmental mapping and dual texturing. In addition to gaming, the 3D Blaster Savage4 is a great choice for general-purpose graphics applications such as word processing, Web navigation, digital imaging and games.

"By combining our new Savage4 technology with Creative's exceptional products and customer support, the 3D Blaster Savage4 is sure to be the 2D/3D card of choice for PC consumers," said Ken Potashner, president and chief executive officer for S3, Inc. "By partnering with Creative, one of the largest graphics card manufacturers in the industry, we are sending the clear message to PC consumers that they are assured of getting leading-edge technology at an extraordinary price."

Additional Features and Benefits

• Support for PCI, AGP2X and AGP4X
• Single pass multiple textures enable spectacular visual effects such as bump maps, environmental maps, light maps, detail textures, and reflection maps
• 125 million pixels/second, trilinear filtered for fantastic frame rates
• Supports DirectX 6 texture compression
• Point, bilinear, trilinear, and anisotropic filtering, with support for MIPmapping for increased image quality
• Full-scene anti-aliasing to enhance image quality
• Motion compensation that assists software DVD playback
• Includes Colorific and 3Deep, from Sonnetech, Ltd., two key software packages designed to ensure that every game and critical desktop application runs with perfect color calibration

Pricing and Availability
Creative's 3D Blaster Savage4 will be available in AGP and PCI configurations in May through its extensive distribution and retail network at an estimated street price of $129.99.

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.

Sound Blaster, Blaster, and 3D Blaster are registered trademarks, and Graphics Blaster and Exxtreme are trademarks of Creative Technology Ltd. in the U.S. and other countries.

S3 is a registered trademark of S3 Incorporated. The S3 corporate logo and Savage4 are trademarks of S3 Incorporated. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.