Patrick Verderico -- Chief Financial Officer
Creative Labs, Inc

Reveal, a privately-held company based in Woodland Hills, CA will receive up to US$65 million in newly issued shares of Creative common stock and 2 million warrants.

Under terms of the agreement, Reveal will become a wholly-owned subsidiary of Creative Technology, and will continue marketing its products and technologies under the Reveal brand name through its broad network of computer retailers and mass merchants. Jason Barzilay, president and chairman of Reveal, will serve on the board of the new Creative subsidiary as its vice chairman.

"This acquisition couples Creative's worldwide strength in the retail and distribution channels with Reveal's broad multi-media peripheral product offerings. It also allows us to complement our premium brand of Blaster products with Reveal's value brand," Mr. Sim said. "We can now meet the requirements of a much broader market of consumers through a product offering that spans all their upgrade needs, from entry level to the most advanced multimedia solution. This marks a new beginning for brand marketing of consumer PC technology ."

The three founding shareholders of Reveal are widely respected as pioneers in the consumer PC market. They are also major shareholders and prominent members of the board of directors of Packard Bell, the world's leading supplier of personal computers for the home market. Along with Mr. Barzilay, these are Beny Alegem president and chief executive officer and chairman of Packard Bell and Alex Sandel, president of Cal-Circuit Abco II, Inc. who serves on the board of both Reveal and Packard Bell.

"We are particularly excited that Creative is gaining three major shareholders with such tremendous experience and demonstrable success in the PC industry," Mr. Sim, Chairman and CEO of Creative Technology Ltd. said. "We look forward to a mutually productive relationship with them going forward."

Noting his company's enthusiasm, Mr. Barzilay said, " There are tremendous synergies between these two companies and one of my primary focuses will be to quickly capitalize on them. I already see many opportunities to bring new technologies to Creative, and just as many opportunities in the market for Creative's products and technologies."

Creative Technology Ltd. develops, manufactures and markets a family of sound, video software and 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.

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.