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Creative Leverages the Power of the PC to Take Consumer Electronics to the Next Level

CES Exhibit Features Fun, Easy-to-Use Digital Audio and Video for the PC

MILPITAS, CA - Jan. 8, 2003 - Creative Technology Ltd. (Nasdaq: CREAF), a worldwide leader in digital entertainment products for PC users, kicks off four days of demonstrating the latest lifestyle digital entertainment innovations at the Consumer Electronics Show in Las Vegas, Jan. 9-12. Creative's exhibit #11507 in the Central Hall of the Las Vegas Convention Center is dedicated to the introduction of new digital entertainment solutions from key product categories that leverage the power of the PC to expand upon the capabilities of consumer electronics devices.

"Creative's digital entertainment solutions for the PC surpass many consumer electronics products in features and performance, at a fraction of the price," said Sim Wong Hoo, founder and CEO of Creative. "At the Consumer Electronics Show we're featuring professional quality audio and video solutions, MP3 players, digital cameras, plus our new category of interactive music entertainment. CES provides us with a great environment to show off all of our fun and easy-to-use products."

Creative's display of lifestyle digital entertainment for the PC demonstrates how to centralize digital entertainment experiences on the PC. Product demonstrations include:

Digital Audio:
At CES 2003 Creative will unveil the new Sound Blaster® Audigy™ 2 Platinum eX sound card, which offers a convenient breakout box for easy connectivity to MIDI and musical instruments, plus high-definition 24-bit 96kHz multi-channel recording capability. The THX®-certified Sound Blaster Audigy 2 has set a new standard for PC audio, as the only solution available for DVD-Audio playback on the PC. Heralded for Dolby® Digital EX support for DVD movies and 6.1-surround sound for games, music and movies, the Sound Blaster Audigy 2 won Editor's Choice Awards from Computer Gaming World, PC Gamer and Computer Games magazines, a 5 out of 5 score from PC Magazine®, and the Kick Ass! Award and Gear of the Year Award from Maximum PC®.

In addition to the Sound Blaster Audigy 2 family of sound cards, Creative will demonstrate the Sound Blaster Extigy™, the first external Sound Blaster sound card, bringing professional quality audio playback to notebook, desktop and gaming console users.

PC Speaker Systems:
At CES 2003, Creative will preview the most powerful PC speaker system available: the new MegaWorks® THX 6.1 650 speaker system, which delivers an awesome 600 watts of Burst Power through six speakers and a subwoofer, for powerful audio realism from PC games, DVD movies and digital audio. Creative will also display the sleek, sophisticated I-Trigue™ 2.1 3300 speaker system, with an eye-catching design suited for use with notebook PCs or flat panel monitors and titanium drivers for outstanding audio fidelity.

Interactive Music Entertainment:
The Creative Prodikeys™ is the world's first music and PC keyboard in one, providing 37 touch sensitive music keys and a full-featured ergonomic keyboard. The Prodikeys keyboard empowers anyone to create and play music - regardless of musical background. Creative has dedicated a special stage for demonstrations of Prodikeys at CES.

Portable Audio:
The world's first portable speaker system with a built-in MP3 player, the Creative TravelSound™ MP3 fits nicely in the palm of one hand. With the included 32MB of built-in memory and an expansion slot to add more, the TravelSound MP3 plays hours of digital music with incredible sonic clarity and ultra-dynamic range from two premium titanium drivers. Destined to be any reporter's prized companion, the Creative TravelSound MP3 also allows up to two hours of recording capability through a built-in microphone.

The TravelSound and entire family of Creative speakers are also ideal for use with Creative's award-winning family of NOMAD® MP3 players. The pocket-sized NOMAD Jukebox Zen with USB 2.0, the NOMAD Jukebox 3 and the NOMAD MuVo™ MP3 players will all be demonstrated at CES.

Visual Processing:
For the first time ever, Creative introduces a visual processing solution for consumers. Hot on the heels of a "digital camera holiday," Creative pioneers a new product category with the Graphics Blaster® Picture Perfect visual processor. Featuring 3Dlabs®' revolutionary new Visual Processing technology, this graphics accelerator breaks new ground as the first one designed to enhance the experience of working with digital images. By offloading portions of the image processing from the CPU to the VPU (Visual Processing Unit), complex imaging tasks take less time. For the amateur digital photographer or the general PC user, the Graphics Blaster Picture Perfect enhances the visual processing experience on the PC.

Digital Video and Images:
Creative makes it easy to share digital images and video with family and friends. At the 2003 CES, Creative will focus on the world's thinnest digital camera, the Creative CardCam™, and the new Creative WebCam Pro eX, which delivers high-performance videoconferencing features.


About Creative
Creative (Nasdaq: CREAF) is a worldwide leader in digital entertainment products for PC users. Famous for its Sound Blaster® sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed NOMAD Jukebox MP3 player. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.

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This announcement relates to products launched in the United States. The product names, prices and availability are subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Sound Blaster, Audigy, Extigy, Graphics Blaster, MegaWorks, Creative TravelSound, Prodikeys, I-Trigue and MuVo are trademarks or registered 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. All other brand or product names mentioned herein are trademarks of their respective holders and are hereby recognized as such.

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