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CREATIVE OFFERS A NEW LEVEL OF 3D GRAPHICS ACCELERATION POWER TO COMPAQ PRESARIO CUSTOMERS

3D Blaster Annihilator Uses Advanced Architecture to Deliver Stunning Visual Quality and Performance

MILPITAS, CA - December 15, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment, today announced that Compaq Computer Corporation (NYSE:CPQ ) is offering the Creative 3D Blaster Annihilator on many of Compaq's Presario line of Internet PC's. The 3D Blaster Annihilator is a high-quality graphics accelerator that uses NVIDIA's new GeForce 256 chipset for powerful 3D processing. Compaq will add in the 3D Blaster Annihilator to select Presario's through the "Built For You" program, which allows consumers to custom configure their PCs. Consumers can buy these Presario's with the Creative 3D Blaster Annihilator at kiosks located at more than 9,300 participating retailers, or direct from Compaq at https://athome.compaq.com/store/default.asp or by calling Compaq Direct at 1-800-888-0220.

The Creative 3D Blaster Annihilator is the first consumer-oriented, PC-based graphics accelerator available to move the entire 3D pipeline off of the CPU and onto the card. NVIDIA's innovative GeForce 256 technology has created a brand new category called the Graphics Processing Unit (GPU). By offloading the 3D pipeline from the CPU, the GeForce 256 allows game developers to create games with significantly more detailed geometry, enhanced Artificial Intelligence (AI), and higher fidelity physics, resulting in unprecedented gameplay.

The GeForce 256 graphics processor delivers excellent visual quality and graphics performance with its 256 bit graphics engine. Advanced 3D features include special effects such as multi-layered textures, bump mapping to simulate rough surfaces and environmental mapping that gives objects reflective properties. Developers can take advantage of enhanced filtering modes with full scene anti-aliasing to create lifelike images that rival higher priced graphics workstations.

The 3D Blaster Annihilator also provides exceptional 2D and video acceleration. It supports motion compensation for MPEG-2 decoding. The 256-bit graphics engine guarantees a high level of 2D performance, while programmable gamma tables optimize image quality for both test and image-based applications.

"Creative is proud to offer Compaq Presario customers advanced graphics technology based on NVIDIA's innovative new Graphics Processing Unit," said John Troutman, vice president & general manager of Creative Labs, Malvern. "The 3D Blaster Annihilator delivers a new class of acceleration power and graphics performance for home Internet enthusiasts and hard core gamers."

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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.

3D Blaster is a registered trademark 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.