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CREATIVE DELIVERS 64MB 3D GRAPHICS SOLUTION TO COMPAQ PRESARIO CUSTOMERS

3D Blaster® Annihilator™ 2 First to Break the Gigatexel Fill Rate Barrier

MILPITAS, Calif. - June 22, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment (PDE) Internet solutions, today announced that Compaq Computer Corporation (NYSE: CPQ) is offering the Creative 3D Blaster® Annihilator 2 as an option on selected Compaq Presario Internet PCs. This new graphics solution is based on the GeForce 2 GTS, the latest graphics processor unit (GPU) from NVIDIA. Compaq will make the 3D Blaster® Annihilator 2 available in early July as an upgrade to selected Presarios through the "Built For You" program, which allows consumers to custom configure their PCs.

The 3D Blaster Annihilator 2 delivers up to 1.6 Gigatexels per second of peak fill rate performance, a more than three times improvement in texture processing power over any previous consumer graphics processor. Incorporating the NVIDIA Shading Rasterizer (NSR), this product delivers advanced per-pixel shading capabilities that simulate natural events and materials such as smoke, fog, cloth, plastic and water. The Hardware Anti-Aliasing ability of the 3D Blaster Annihilator 2 creates smooth lines and edges on all objects in 3D games and virtually eliminates jagged lines on surfaces or stair step effects. The Creative 3D Blaster Annihilator 2 designed for Compaq comes configured with an enormous 64MB of DDR memory, effectively operating at a clock speed of up to 333MHz, generating 5.3 GB/second of dedicated graphics memory bandwidth. Combined with a core clock speed of 200 MHz, this high-end solution provides one of the largest available memory configurations on the consumer market, and one of the fastest graphics solutions, making gaming at an amazing full 32-bit color at 1280x1024 a reality. The second-generation Transform and Lighting Engines in the 3D Blaster Annihilator 2 can process more than 25 million triangles per second. A High Definition Video Processor (HDVP) also allows users to transform their PCs into high-quality DVD players.

"The power of the 3D Blaster Annihilator 2 takes graphics professionals, DVD fans, and hardcore gamers to the next level," says John Troutman, vice president & general manager of Creative Labs, Malvern. "The 3D Blaster Annihilator 2 combined with Compaq Presario systems brings cutting edge graphics and technology to PC users."

"We are very excited with our continued partnership with Creative to deliver such a high end video solution to our customers," says Mark Vena, Director of Marketing for Consumer Products at COMPAQ. "The 3D Blaster Annihilator 2 is one of the top graphic cards available to the consumer for all graphics and gaming uses."

This announcement relates to products launched 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.

Blaster, Sound Blaster, 3D Blaster, Live!, Annihilator and Environmental Audio are registered trademarks of Creative Technology Ltd. in the U.S. and other countries.

NVIDIA and the NVIDIA logo are trademarks of NVIDIA Corporation.

All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

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