CONTACT INFORMATION

Theresa Pulido               Lisa Kimura
Creative Labs, Inc.          Copithorne & Bellows

Creative Announces Innovation in PC Music Synthesis

Unique CQM Audio Technology Offers An Enhanced Alternative to FM Music Synthesis And Significant Cost Savings

SINGAPORE -- August 4, 1995 -- Creative Technology Ltd. (Nasdaq:CREAF) today announced CQM™, Creative Quadratic Modulation, a new audio technology for the PC marketplace. Developed by E-Mu Systems®, Inc., Creative's U.S. subsidiary and audio technology center, CQM is an innovative technology that delivers richer quality sound than traditional FM music synthesis. CQM bridges the gap between traditional FM synthesis and higher end wave table synthesis, at a lower cost than FM synthesis.

"CQM will heighten the low end music synthesis capabilities of the PC," said W.H. Sim, chairman and CEO of Creative Technology. "CQM provides improved richness and fidelity over traditional FM music synthesis sound in existing software without requiring any re-programming. CQM will provide higher quality audio at a lower cost to Creative's OEM customers and promises the prospect of cost reductions across Creative's own retail Sound Blaster product line."

While delivering higher quality sound, CQM is fully compatible with FM music synthesis as is found on almost all sound cards, including the full range of Creative's Sound Blaster products, the de facto sound standards in the industry.

Creative plans to integrate CQM into all of its chip and board based Sound Blaster® 16 products. The simpler circuitry and internal sourcing of the silicon will significantly reduce Creative's costs in both the OEM and retail markets. Products incorporating CQM are expected to ship in volume in the Fall of 1995.

CQM, was developed by E-Mu Systems under the direction of Dave Rossum, E-Mu founder and chief scientist. CQM is the second technology developed by the pro-audio experts at E-Mu that will be productized in the Sound Blaster audio card line for mass market appeal. The first was the EMU8000 music synthesis technology, found in the Sound Blaster 32 and the award winning Sound Blaster AWE32™ products. With over 20 years experience in the high-end electronic music arena, E-Mu Systems was the first to pioneer several breakthrough technologies in this area. It now owns numerous patents in digital audio and music synthesis technologies. E-Mu's CQM technology has patent applications currently pending.

Creative Technology Ltd. develops, manufactures and markets a family of sound, video, software telephony multimedia products for PCs under the Blaster™ family name, and the ShareVision line of desktop video conferencing products for Macintoshes and PCs. The company's Sound Blaster® sound platform enables 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 U.S. subsidiaries include Creative Labs, Inc., E-mu Systems®, Inc., Digicom Systems, Inc. and ShareVision® Technology, Inc. Creative also has other subsidiaries in Australia, China, Europe, Japan, Malaysia, Singapore, South Korea and Taiwan. The company's stock is traded on Nasdaq under the symbol CREAF and on the Stock Exchange of Singapore.

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Sound Blaster is a registered trademark and Blaster and CQM are trademarks 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.