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CREATIVE ANNOUNCES NOMAD MUVO - WORLD'S SMALLEST MP3 PLAYER AND PORTABLE USB STORAGE DEVICE ALL IN ONE

No Software or Cables Needed for Easy Drag-and-Drop File Sharing

MILPITAS, CA - July 22, 2002 - Creative (NASDAQ: CREAF), the worldwide leader in digital entertainment products for users of the personal computer and the Internet, today introduced its smallest and most radical MP3 player yet, the NOMAD MuVo. Small enough to fit on a key chain yet so versatile that it slides apart to become a USB storage device, the 128MB NOMAD MuVo holds an amazing four hours of high quality WMA music (or two full hours of MP3 music at 128kbps) and has an ESP of just US$169.99. An even lower cost NOMAD MuVo with the same cool styling is priced at only US$129.99 and has 64MB to hold up to two full hours of WMA and MP3 music. Both players will ship within the next month.

The ultra-sleek NOMAD MuVo is actually comprised of two parts, and it's incredibly easy to use. Just slide the device apart with your fingers and plug the MuVo Memory directly into the USB port on your computer. It's recognized just like a removable solid state hard disk drive - with no cables needed to move content - simply drag and drop music, digital images or data files. Perfect for MP3 and WMA music, sharing digital image files with friends and family and for exchanging business presentation and document files, the MuVo Memory with 128MB can hold up to 88 times as much data as a floppy disk. To turn it into a super high-quality MP3 player, just slide the NOMAD MuVo back together, plug in the included earphones and enjoy crystal clear music playback that the Creative NOMAD family is known for. The NOMAD MuVo can play music for 12 hours on just one tiny AAA battery.

"People will love the NOMAD MuVo for its size and style alone, but its list of features is what's really incredible," said Sim Wong Hoo, founder and CEO of Creative. Features include:

  • Super high-quality MP3 player slides apart to become MuVo Memory portable USB storage device;
  • Connects directly to USB for file transfer without cables;
  • Recognized by the PC as removable solid state hard disk for simple drag and drop of files;
  • Does not require software* yet can be used with the user's favorite music software, including Creative PlayCenter;
  • Holds up to four full hours of digital music; also transfers documents and images;
  • Weighs less than an ounce; designed to fit on a key chain or necklace (2.87" x 1.38" x 0.63");
  • 12 hours of uninterrupted music playback at >90dB SNR on just one AAA alkaline battery;
  • Supports both WMA and MP3 formats for music playback;
  • Rugged solid-state construction means no music skipping during workouts;
  • Free set of lightweight, sporty ear phones and neck cord included.

"Imagine jogging with an MP3 player so small and so light that you almost forget that it's there, yet the sound quality is so incredible that you would expect it to be coming from something much larger," continued Sim. "This is how we designed the NOMAD MuVo. It's smaller than a cigarette lighter yet it doesn't even weigh an ounce. We built in a sturdy loop to hook it to a key chain and included a neck cord so it can be worn as a necklace. With the MuVo Memory you don't have any issues with music skipping when you work out because of its tough, solid state construction. All the buttons for play, stop and to skip tracks are really easy to access so users have their music at their fingertips. It's great for taking along for rugged outdoor activities like cycling or mountain climbing; but the truth is, its so small and light and looks so cool that people will want to have it with them all the time."

"With the NOMAD MuVo, you never need to use a floppy disk again," said Craig McHugh, president of Creative Labs. "Whether you're on a business trip or at a friend's house, you can transfer and store music, share digital images and data or back up your files in just seconds - no need to burn a CD or send files through e-mail; the NOMAD MuVo is super fast and completely portable." A range of exciting NOMAD MuVo accessories to cater to different lifestyles will become available soon. Additional product and accessory information is available at www.nomadworld.com.

# # #

This announcement relates to products launched in the United States. The product names, prices and availability are subject to change without notice and may differ elsewhere in the world according to local factors and requirements.

NOMAD is a registered trademark of Aonix and is used by Creative Technology Ltd. and/or its affiliates under license.

Sound Blaster is a registered trademark and MuVo, MuVo Memory and PlayCenter are trademarks of Creative Technology Ltd. in the United States and/or other countries. All other brand or product names mentioned herein are trademarks of their respective holders and are hereby recognized as such.

*No drivers required for Microsoft Windows 2000/ME/XP. USB drivers for Windows 98/98SE provided in the bundled CD and on www.nomadworld.com/downloads.

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