Results for the third quarter of fiscal 1999 were:

* Sales for the third quarter were US$313.7 million, compared to US$298.4 million for the same quarter last year.

* Net income for the third quarter was US$18.3 million, compared to US$45.2 million for the same quarter last year.

* Earnings per share for the third quarter were US$0.20 per share, compared to US$0.48 per share for the same quarter last year.

    Results for the first nine months of fiscal 1999 were:
    * Sales for the first nine months were US$1,021.4 million, compared to
      US$981.2 million for the first nine months of the previous year.
    * Net income for the first nine months was US$100.3 million, compared to
      US$130.0 million for the same period last year.
    * Earnings per share for the first nine months were US$1.07, compared to
      US$1.37 for the corresponding nine month period last year.

Please note that the comparative results for the first nine months of fiscal 1998 include a gain of US$18.5 million from the sale of quoted investments in the first quarter of fiscal 1998 and a one-time write-off totaling US$60.3 million for in-process technology related to acquisitions in the second quarter of fiscal 1998.

During the quarter, Creative continued its stock buy-back program, repurchasing approximately 4.3 million shares at a cost of US$52.9 million. Because the buyback was ongoing during the quarter, the shares repurchased did not fully impact the number of shares used in earnings per share calculations. Since the inception of Creative's share buy-back program in late November, 1998, the company has repurchased approximately 7.8 million shares at a total cost of US$110.4 million.

Also during the quarter, Creative paid previously announced dividends of US$0.50 per share for a total of US$45.0 million.

``Although we did not meet earnings expectations for the third quarter, we achieved several critical goals that I had set for the company,'' said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. ``We reported our second consecutive quarter of increased year-over-year revenues, and we further improved our market share position. In U.S. Retail, our speakers moved to #1, and we now hold either the #1 or #2 position in all five of our product categories. Additionally, four major OEMs -- Compaq, Dell, Gateway, and Micron -- will be shipping Sound Blaster Live! in the current quarter. These achievements create an even stronger foundation for us to move into new markets, such as the recently-announced Nomad MP3 digital audio player, which created great market excitement at the Internet World show and positions Creative as a leader in the explosive internet audio market.''

Environmental Audio Garners Top Industry Support

Creative's Environmental Audio technology continues to garner support from key game developers. Over 45 titles are now available with support for the Sound Blaster Live! line and Environmental Audio technology -- with an increasing number of titles in development. For a complete list of titles please visit Creative's Web site, the Creative Zone, at http://www.soundblaster.com/eaudio/eax/

Recent Announcements

All of Creative's news releases are available on the company's Web site at: www.soundblaster.com/pressroom or via its fax back service at 405-372-5227. Recent highlights include:

* 4/12/99: Creative Labs Launches Nomad Portable Digital Audio Players

* 3/31/99: Creative Labs Blazes onto Desktop with the Latest PC-DVD Entertainment Solutions

* 3/16/99: Creative Ships Four-Point Surround FPS2000 Digital High-Power, Four Channel Amplified Multimedia Sound System

* 3/16/99: Creative Introduces EAX 3.0 API -- A New Generation of Environmental Audio for Gaming

* 3/01/99: Creative's New 32 MB 3D Blaster Savage4 Unleashes Fierce Graphics at a Breakthrough Price

Safe Harbor Statement Under the Private Securities Litigation Reform Act Of 1995

Except for the historical information contained herein or in the accompanying conference call, the statements herein and in the call (including information on future products, future marketing efforts, and future revenues, margins, expenses and earnings) are forward looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. Such statements are subject to the attached cautionary statements which are provided pursuant to The Private Securities Litigation Reform Act of 1995.

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative's products are marketed through the OEM, systems integrator and retail channels under a variety of trademarks, including the ``Blaster'' family name. With the new Sound Blaster® PCI standard, Creative has produced a solution that utilizes a combination of hardware and software for near-perfect compatibility with existing DOS and Windows titles. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development being carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa.

NOTE: Sound Blaster and Blaster are registered trademarks and PC-DVD Encore, DeskTop Theater, 3D Blaster and Graphics Blaster are trademarks of Creative Technology Ltd. Cambridge SoundWorks is a registered trademark of Cambridge SoundWorks, Inc. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.

Safe Harbor for Forward Looking Statements: Except for the historical information contained herein and in the accompanying conference call on today's date, the matters set forth herein and in the accompanying conference call (including our guidance on future revenues, margins, expenses and earnings) are forward looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. Such risks and uncertainties include, among others: potential fluctuations in quarterly results due to the seasonality of Creative's business and the difficulty of projecting such fluctuations; reductions in the market value of products sold by Creative, including increases in supply or declines in demand or prices for CD-ROM or DVD drives, board and chip-level products, and software products; the short product cycles that characterize most of Creative's products; the increasing proliferation of sound functionality at the chip and operating system levels; Creative's reliance on sole sources for many of its chips and other key components; the timely ramp, delivery and market acceptance of new products, including Creative's next generation audio, graphics accelerator, CD-ROM and DVD drives and communications products; the volatility of share prices for companies in Creative's industry and the effect of those prices or other events beyond Creative's control; and other risk factors described in Creative's filings with the Securities and Exchange Commission over the past twelve months.

                           CREATIVE TECHNOLOGY LTD.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In US$' 000, except per share data)
                                 (Unaudited)

                                   Three months ended       Nine months ended
                                         March 31,             March 31,
                                     1999       1998        1999       1998

    Sales, net                     $313,715   $298,423   $1,021,403  $981,199
    Cost of goods sold              232,964    202,124      731,428   660,095
    Gross profit                     80,751     96,299      289,975   321,104
    Operating expenses:
      Selling, general and
       administrative                51,534     42,949      161,702   118,565
      Research and development       11,825     10,142       33,852    31,108
      Other charges                      --         --           --    60,300
    Total operating expenses         63,359     53,091      195,554   209,973
    Operating income                 17,392     43,208       94,421   111,131
    Interest income and other, net    2,908      6,730       14,619    36,480
    Income before income taxes and
     minority interest               20,300     49,938      109,040   147,611
    Provision for income taxes       (1,624)    (4,962)      (8,617)  (18,922)
    Minority interest in (income)
     loss                              (425)       261          (77)    1,288
    Net income                      $18,251    $45,237     $100,346  $129,977
    Basic earnings per share:         $0.21      $0.50        $1.10     $1.44
    Average ordinary shares
     outstanding ('000)              88,398     91,169       91,271    90,132
    Diluted earnings per share:       $0.20      $0.48        $1.07     $1.37
    Average ordinary shares and
     equivalents outstanding ('000)  90,835     95,056       93,646    94,839


                           CREATIVE TECHNOLOGY LTD.
                         CONSOLIDATED BALANCE SHEETS
                     (In US$' 000, except per share data)
                                 (Unaudited)

                                                           March 31,  June 30,
                                                             1999       1998
    ASSETS
    Current Assets:
      Cash and cash equivalents                            $348,531   $417,262
      Accounts receivable, less allowances of
       $11,622 and $14,074                                  163,757    115,930
      Inventory                                             130,874    144,320
      Other assets and prepaids                              12,292     10,180
        Total current assets                                655,454    687,692
    Property and equipment, net                              98,694    100,767
    Investments and other non-current assets                 89,512     76,654
                                                           $843,660   $865,113

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities:
      Accounts payable                                     $127,562    $90,544
      Other accrued liabilities                              60,296     61,381
      Income taxes payable                                   47,084     45,002
      Current portion of long term obligations                6,602      5,973
        Total current liabilities                           241,544    202,900
    Long term obligations                                    29,193     32,277
    Minority interest in subsidiaries                         7,594      7,622
    Shareholders' equity:
      Ordinary shares ('000); S$0.25 par value;
        Authorized: 200,000 shares
        Outstanding: 85,890 and 92,914 shares                 8,628      9,678
      Additional paid-in capital                            163,254    158,532
      Unrealized holding gains on quoted investments          8,180     13,719
      Retained earnings                                     385,267    440,385
        Total shareholders' equity                          565,329    622,314
                                                           $843,660   $865,113