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CREATIVE INTRODUCES HIGH DEFINITION MULTI-ENVIRONMENT AUDIO PROCESSOR

Audigy™ Processor Powers EAX® ADVANCED HD™

MILPITAS, CA - August 13, 2001 - Creative Technology Ltd. (NASDAQ: CREAF), the worldwide leader in digital entertainment products for the personal computer and the Internet, today announced the next-generation Audigy audio processor and EAX® ADVANCED HD, two core elements of Creative's future audio developments.

The new Audigy processor boasts four times the effects processing power of Creative Technology's famed EMU10K1 processor, which powers the industry-leading Sound Blaster® Live! brand of PC audio cards. Its dedicated design makes it uniquely capable of executing the complex audio algorithms required to produce higher fidelity reverb and effects, as well as powering advanced 3D audio imaging for games, music and home studio productions.

"Audigy and EAX ADVANCED HD represent an exponential leap in the power and functionality of PC audio," said Sim Wong Hoo, founder and CEO of Creative. "Creative is the pioneer in audio technology for the PC, and these innovations position us for continued leadership and success in both the PC and consumer electronics markets."

The Audigy processor features a 32-bit Multi-Effects Engine, which accelerates Creative's new EAX ADVANCED HD software to enhance both gaming and music listening experiences. For gaming, EAX ADVANCED HD provides unprecedented realism by providing users the following features:

• Multi-Environment - Gamers can enjoy four simultaneous audio environments in real time;
• Environment Morphing - Provides a natural audio transition from one environment to another with real-time morphing of each environment's audio characteristics;
• Environment Panning - Enables gamers to hear the 3D spatialization and localization of an upcoming or distant environment;
• Environment Reflections - Allows the real-world phenomenon of sound bouncing off surfaces and returning to the gamer in full 3D;
• Environment Filtering - Utilizes high-pass audio filters to generate accurate simulation of sound from both indoor and outdoor environments.

For game developers, the EAX ADVANCED HD game audio library provides a compelling set of useful tools with support for Microsoft's Direct Sound® API, the OpenAL API, Dolby Digital® 5.1 mixing API and EAGLE 3.0 Graphical Librarian Editor.

Digital music enthusiasts will be able to utilize the interactive elements of EAX ADVANCED HD to enhance their listening experience, be it with CD Audio, MP3 or other digital formats and Dolby Digital music. Specific music-related benefits include:

• Audio Clean-Up - Removes unwanted "hiss" and scratch noise from MP3 tracks or from material encoded to MP3 from cassette or LP;
• Time Scaling - Speeds up or slows down audio playback without changing the pitch or audio quality;
• EAX ADVANCED HD Audio Effects - Provides users a wide range of sophisticated environmental audio presets as well as special effects for an enriched music experience;
• DREAM - Create enhanced surround sound from any stereo source by redirecting the path of a specific frequency range.

Look for more information about the Audigy processor in coming weeks at www.creative.com and www.soundblaster.com.

Audigy, EAX ADVANCED HD, Sound Blaster and Blaster are registered trademarks of Creative Technology Ltd. NOMAD is a registered trademark of Aonix and is used by Creative Technology Ltd. and/or its affiliates under license. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.