Ruscombe - March 9th, 1995 - Creative Technology Ltd. (Nasdaq: CREAF), the leading provider of multimedia products for personal computers, today announced second quarter financial results for the period ended 31.12.94, highlighting a record trading period for its European subsidiaries.

Sales for the second quarter of fiscal 1995 were $400.9 million compared with $183.4 million (+119%) for the same quarter last year. Sales for the six months ending December 31, 1994, were $651.2 million compared to $296.3 million (+120%) for the comparable period last year.

In Europe, Q295 revenues were $140 million, a 350% increase over the corresponding period last year, representing Creative's fastest growing market.

Net income for the quarter was $21.6 million compared to $33.0 million for the second quarter 1994. Net income for the six months ended December 31, 1994, was $39.3 million compared to $54.2 million for the corresponding period of the prior year.

Earnings per share were $.24 compared to $.37 for the second quarter last year. Earnings per share for the six months ended December 31, 1994 were $.44 compared to $.62 for the corresponding period last year.

Results for the quarter ended December 31, 1994, included a one-time charge of $7.0 million for the write off of in-process technology due to the acquisition of Digicom Systems, Inc, and $3.4 million of realised holding loss on marketable equity securities. Excluding these one-time charges, net income and EPS for the quarter ended December 31, 1994, would have been $32.0 million or $.36 per share.

The company's financial position remains strong. Creative's ending cash balance was $174.2 million and the receivable balance of $177.5 million represents 40 days sales outstanding.

About Creative...
Creative Labs UK is a subsidiary of Creative Technology, the world leader in the development, manufacture and marketing of multimedia products for PCs. Best known for establishing its Sound Blaster system as the industry standard for PC audio - with worldwide sales now reaching 1 million units a month - Creative also leads the market in multimedia upgrade kits, video boards and voice recognition technology.

Creative Technology was founded in 1981 and is based in Singapore. The company's subsidiaries include Creative Labs in China, Europe, Japan, Taiwan and the US. The European head office is based at Ruscombe, near Twyford. In January 1994, Creative opened its technical support group in Dublin, which provides telephone support to French, German and English-speaking customers across Europe. Creative's stock is traded on the NASDAQ exchange, with record sales in 1994 of $658 million - a 126% increase on 1993.