CONTACT INFORMATION

Theresa Pulido          Susan Breshears
Creative Labs, Inc.     Copithorne & Bellows

CREATIVE LABS TAKES NEXT STEP IN 3D GRAPHICS STRATEGY

Multimedia Leader Licenses Additional 3D Graphics Core From 3Dlabs

SINGAPORE -- January 31, 1996 -- In its commitment to drive standards in the multimedia industry, Creative Technology Ltd. (NASDAQ:CREAF), the leading provider of multimedia products for personal computers, today announced the licensing of additional 3D graphics technology. Long recognized for establishing the standard for PC sound, Creative is working with other industry leaders, including software vendors such as Microsoft, hundreds of game developers and selected semiconductor suppliers, to create standards for advanced 3D graphics.

In conjunction with that effort, Creative today announced a further step in its 3D strategy, by licensing the PERMEDIA™ 3D graphics core technology from 3Dlabs™ An extension to a long-standing relationship with 3Dlabs, this license enables Creative to leverage its strengths in sound and communications to design future solutions that incorporate high-performance 2D and 3D graphics, audio and communications capabilities.

Creative's continued leadership role in establishing a standard in 3D graphics stems from the plethora of new 3D graphics semiconductor technologies that have come to market in the past year. "3D graphics is one of the hottest new technologies in the computer industry and we've seen a near tidal wave of 3D silicon solutions," said Hock Leow, vice president of the Video and Graphics Product Group at Creative Labs, the U.S. subsidiary of Creative Technology. "Our goal is to make life very simple for people trying to decide what 3D graphics products to buy and for developers building titles that incorporate 3D visuals and audio. Our Creative Graphics Library (CGL) technology provides the only solution available today that gives users and developers this blanket of 3D compatibility."

"3D technology is rapidly emerging as one of the hot spots in the industry with an expected annual growth rate of 400 percent," said Mike Feibus, principal at Mercury Research. "It's exciting to see industry leaders working closely to set standards that will ease the choice for developers, vendors, and ultimately consumers alike."

Creative has taken the following steps to help establish a 3D graphics standard:

3D Blaster Shipping For 486 VL-BUS PCs -- 3D Blaster began shipping in November 1995, and is the only 3D game card for the 486 VL-BUS PC. It gives a 486 over twice the graphics performance of a Pentium 90. With an estimated street price of $349, 3D Blaster includes a suite of five next-generation immersive 3D titles including: EA/Bullfrog's Hi-Octane and Magic Carpet Plus; Papyrus' NASCAR Racing; Looking Glass Technologies' Flight Unlimited; and Fenris Wolf's Rebel Moon.
Operating System Support -- Creative is working closely with Microsoft in support of Windows 95 Direct 3D to further expand the capabilities of the PC. In fact, Creative's 3D graphics drivers for 3D Blaster™ will be incorporated into Windows 95 Direct 3D SDK, which ensures compatibility between new titles and 3D Blaster solutions.
Common Development Platform -- Creative is working with leading multimedia software developers to incorporate the CGL into their new titles. Analogous to Creative's effort in creating Sound Blaster compatibility, the CGL will ensure 3D graphics compatibility between those titles and the various 3D graphics solutions available from Creative Labs.
Developer Support -- Creative has gained strong pledges of support from more than 200 game developers to deliver exciting new 3D titles for the 3D Blaster platform. Among these are EA, Bullfrog, Papyrus, Mindscape, id, Virgin Interactive and a host of others.
Silicon Support -- Creative is identifying leading silicon providers with superior 3D technical expertise; to date the company has developed silicon in concert with 3D Labs technology used in its flagship 3D Blaster product for VL-Bus systems and licensed from 3Dlabs core 3D graphics technology for developing future silicon solutions.

Creative Technology Ltd. develops, manufactures and markets a family of sound and video multimedia products for IBM-compatible PCs. The company's Sound Blaster sound platform enables IBM-compatible PCs to produce high-quality audio for entertainment, educational, music and productivity applications, and has been accepted as the industry standard sound platform for PC-based software.

Creative Technology Ltd. was incorporated in 1983 and is based in Singapore. Creative Technology's subsidiaries include Creative Labs, Inc., E-mu Systems, Inc., and ShareVision Technology, Inc. Creative also has other subsidiaries in the U.S., Europe, Japan, Singapore, Taiwan, Malaysia and China. The Company's stock is traded on the Nasdaq under the symbol CREAF.

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Sound Blaster is a registered trademark and Blaster is a trademark of Creative Technology Ltd. E-mu is a registered trademark of E-mu Systems, Inc. and ShareVision is a registered trademark of ShareVision Technology, Inc. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.