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| Fremont, CA – August 20, 1998
– (AURL: OTC Bulletin Board) Aureal Semiconductor Inc. today announced updated
information regarding the litigation between itself and Creative Technology Ltd., a
Singapore corporation ("Creative") and its subsidiary, E-MU Systems, Inc., a
California corporation ("E-MU"). Initially, Creative and E-MU filed suit in
February alleging that Aureal’s Vortex AU8820 Digital Audio Processor infringes upon
a patent which describes a specific implementation for an electronic musical instrument
designed by E-MU. Recently, Aureal filed a motion for summary judgment of the Creative/E-MU suit which is scheduled to be heard by the court on September 18, 1998. In response to this action, Creative/E-MU has filed a motion for a preliminary injunction with respect to the Vortex AU8820 chip and Aureal’s new Vortex 2 AU8830 chip. Aureal continues to believe this suit is without merit and intended to slow down Aureal’s mission of bringing innovative audio technology to the marketplace. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including, but not limited to, dependence on the PC and consumer electronics industries and on product lines based on new technologies; foundry capacity, availability and reliability; competition and pricing pressures, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission. About Aureal Aureal builds advanced audio semiconductor and software solutions that increase functionality and features for personal computers and consumer electronics devices. Aureal develops audio processing semiconductor chips and also licenses technology designed to define and improve advanced audio standards in the marketplace. For information on Aureal, its products, and its industry leading A3D audio technologies, please call Corporate Communications at 510-252-4582 or visit our Website at www.aureal.com Aureal Press Release
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