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CREATIVE AND COREL PARTNER ON LINUX DESKTOP DEVELOPMENT

Strategic Alliance Brings Creative's Sound Blaster Live and Personal Digital Entertainment Solutions Support to Corel® LINUX® OS and Applications

MILPITAS, CA - December 16, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment and productivity, and Corel Corporation (NASDAQ: CORL, TSE: COR), a leading Linux software publisher, today announced an agreement that will advance the development of Linux applications for high-quality audio and video. Creative will work with Corel to add support for its line of Sound Blaster Live! digital audio solutions and its line of Personal Digital Entertainment (PDE) Internet Solutions that include Internet devices, applications and services.

As part of this collaborative effort, Corel will distribute its upcoming Linux-based suite of applications with support for Creative's industry-standard audio solutions and PDE devices bundled in. Based on the agreement, Creative and Corel will collaboratively develop Linux drivers for Creative's branded solutions. Creative's PDE Internet Solutions include the NOMAD line of portable audio devices and the WebCam Go line of portable PC cameras. Sound Blaster Live! drivers for Linux are already available and will, under the agreement, be customized for Corel's distribution.

"This joint development effort with Creative is an endorsement of Corel's Linux initiatives," said Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. "The joint effort with Creative will generate significant momentum behind our development effort for Linux consumer applications. Including support for the popular Sound Blaster audio and Personal Digital Entertainment solutions will further accelerate development for consumer-friendly Linux-based applications for productivity, entertainment, Internet audio and video."

"Support for Corel's Linux applications establishes an expanded market for Creative's branded products for high-quality audio and personal digital entertainment solutions," said Craig McHugh, president of Creative Labs, Inc. "We're pleased to be working with Corel, a leading Linux developer, to bring these exciting products to the Linux community."

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Sound Blaster and Blaster are registered trademarks of Creative Technology Ltd. in the U.S. and other countries.

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