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CREATIVE SHATTERS PC SOUND BARRIER WITH SOUND BLASTER® AUDIGY™

MILPITAS, CA - August 20, 2001 - Creative Technology Ltd. (NASDAQ: CREAF), the worldwide leader in digital entertainment products for the personal computer and the Internet, today announced the Sound Blaster® Audigy line of PC audio cards, slated for immediate shipping to global retail and online outlets.

The Sound Blaster Audigy cards set a new benchmark for PC audio with Audigy ADVANCED HD audio technology, defining Creative's completely redesigned high definition audio architecture. Audigy ADVANCED HD delivers audio clarity comparable to high-end home stereo solutions and unprecedented realism in audio playback. Audigy ADVANCED HD is powered by the Audigy processor, which has four times the effects processing power of any previous Creative audio processor.

"The Sound Blaster Audigy surpasses many home stereo solutions in terms of fidelity and functionality, and at a much lower cost," said Sim Wong Hoo, founder and CEO of Creative. "The huge installed base of PC users can now upgrade to Sound Blaster Audigy to empower the PC as a digital entertainment platform like never before."

Audigy ADVANCED HD: Audio Clarity
Audigy ADVANCED HD delivers stunning audio clarity in multi-channel through 24-bit/96kHz digital-to-analog converters (DACs), producing an unprecedented 100dB signal-to-noise ratio (SNR). This dramatic increase in audio quality is attributed to the high-definition audio elements of Audigy ADVANCED HD.

Audigy ADVANCED HD and EAX® ADVANCED HD: Audio Realism
A fundamental element of Creative's audio architecture, EAX ADVANCED HD technology provides unprecedented realism in PC gaming through Multi-Environment, Environment Morphing, Environment Panning, Environment Reflections and Environment Filtering technologies. Digital music enthusiasts can also utilize EAX ADVANCED HD for Time Scaling, to slow down or speed up a track while retaining accurate pitch; and Audio Clean-Up to remove hiss and scratches from LP and MP3 music.

In the new Sound Blaster line, users can also expect the continuation of the Dolby® Digital decoding, DirectSound®, DirectSound3D and Open AL acceleration features that have been included in previous Sound Blaster products.

SB1394
The Sound Blaster Audigy solutions include fully integrated SB1394, embracing the IEEE® 1394 standard for connection to popular devices such as DV camcorders and external devices and for superior low-latency peer-to-peer PC networking with as many as 63 different PCs. With its transfer rate of up to 400Mbps, SB1394 functions as much as 30 times faster than USB 1.1, making it an ideal solution for easy transfer of large files to and from external devices.

Pro Studio Applications
The Sound Blaster Audigy supports 24-bit/96kHz format over the digital I/O for compatibility with professional audio gear such as AES-EBU equipment. Users interested in music creation can utilize the EAX ADVANCED HD optimized driver designed for low-latency ASIO support, providing low-latency multi-track recording.

PlayCenter 3
The Sound Blaster Audigy includes the new Creative PlayCenter 3, a personal digital music center for creation, organization and enjoyment of digital quality music enhanced with EAX ADVANCED HD effects, along with Dolby® Digital AC-3 file playback and integrated CD burning capabilities. When connected to a digital music player, Creative PlayCenter 3 makes it fast and easy to transfer playlists and digital music content.

The Creative Sound Blaster Audigy family currently includes the Sound Blaster Audigy Platinum eX, Sound Blaster Audigy Platinum, Sound Blaster Audigy MP3+ and Sound Blaster Audigy X-Gamer.

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This announcement relates to products launched in the United States of America. The product names, content, prices and availability are subject to change and may differ elsewhere in the world according to local factors and requirements.

Sound Blaster, Blaster and EAX are registered trademarks and Audigy, Sound Blaster Audigy, SB1394, PlayCenter, EAX AVANCED HD, and Oozic are trademarks of Creative Technology Ltd. in the United States and/or other countries. NOMAD is a registered trademark of Aonix and is used by Creative Technology Ltd. and/or its affiliates under license. FruityLoops is a trademark of Image Line Bvba in the United States and/or other countries. All other brand or product names are trademarks or registered trademarks of their respective holders and are hereby recognized as such.

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