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CREATIVE INTRODUCES DESKTOP THEATER SPEAKER SYSTEM FOR PLAYSTATION 2 MARKET

New DeskTop Theater PlayWorks 2500 Enables Enjoyment of Games and Movies in Crystal-Clear Dolby Digital Surround Sound

TOKYO, JP - February 22, 2000 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of Personal Digital Entertainment solutions, today announced the new Cambridge SoundWorks® DeskTop Theater? PlayWorks 2500 Speaker System, a high output, high performance, digital home theater system. A complete Dolby Digital® surround sound audio system with Optical SPDIF connectivity, the PlayWorks 2500 allows users to enjoy realistic and powerful gaming sound, Dolby Digital 5.1 home theater quality DVD movie audio or simultaneous playback of digital audio from movies and analog audio from PlayStation®2.

"DeskTop Theater? 5.1 speaker system was the industry's first loudspeaker system to enable simultaneous playback of Dolby Digital 5.1 home theatre quality audio from the PC-DVD system and the interactive PC gaming sound effects," said H.G. Tan, vice president of Audio Products for Creative Technology Ltd. "Today, we have enhanced the system with the optical SPDIF connectivity to support Sony's PlayStation® 2 - an exciting new and growing market - as well as other next-generation gaming consoles."

Based on the award-winning DeskTop Theater? 5.1 and DeskTop Theater? DTT2500 Digital, the PlayWorks 2500 features a built-in Dolby Digital decoder, optical and coaxial SPDIF connectivity, five compact satellites and a subwoofer.

Besides supporting PlayStation® 2, the PlayWorks 2500 is also an ideal desktop theater speaker solution for other popular gaming consoles with Pro Logic contents. In addition, the PlayWorks 2500 is a perfect fit for multi-channel gaming on the PC platform as it can easily be connected to PC audio systems via four-channel analog inputs for better 3D positional audio, or to the Sound Blaster® Live! audio card through the Digital DIN connection for crystal-clear digital audio.

Features & Benefits

• High output, high performance Dolby Digital Speaker System;
• Optical SPDIF input for use with PlayStation2 and next-generation gaming consoles;
• Subwoofer for room-shaking bass, plus an additional subwoofer line out that may be connected to a powered subwoofer such as a Cambridge SoundWorks' BassCube? for increased bass;
• Decoder/amplifier with built-in 24-bit Digital-To-Analog Converter (DAC), with separate inputs for coaxial and optical SPDIF Dolby Digital (AC-3), Creative's four-channel Digital DIN input for connection with Sound Blaster® Live!, and 4 analog channels for connecting to - front and rear stereo sources. These inputs allow [simultaneous] playback of DVD movie sound tracks and interactive game sound sources;
• Built-in Dolby Pro Logic (from either the digital or analog input) and Creative Multi Speaker Surround (CMSS) which upmixes stereo sources to 5.1 surround output;
• Independent level controls for master volume, and center, subwoofer, and surround speakers' volume for ease in controlling the speakers' balance; and
• Compact, height-adjustable floor stands for discretionary placement and repositioning, fitting easily to the side or underneath a desk for optimum listening.

Pricing & Availability
DeskTop Theater PlayWorks 2500 will be available in Japan through the local distribution channel in early March 2000 at an estimated street price of Japanese Yen 39,800.

About Creative Technology
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 utilises 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. For more information, visit Creative's website at www.creative.com.

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This announcement relates to products being launched in Japan. The product names, contents, prices and availability are subject to change and may differ elsewhere in the world according to local factors and requirements.

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

All other brand names mentioned are either trademarks or registered trademarks of their respective owners.