June 28th, 1996 -- Creative Technology Ltd. (Nasdaq:CREAF), the world's leading provider of multimedia peripherals for the PC, is extending its leadership role in desktop videoconferencing by driving industry efforts to set standards and produce interoperable products. Creative is committed to delivering products that interoperate with other systems and adhere to standards such as H.324 for POTS (plain old telephone system), H.320 for ISDN (integrated services digital network), T.120 for data conferencing, application sharing and future standards that work over multiple mediums.

Creative continues to drive market and technology development as a member of the International Multimedia Telecommunications Consortium committees that recommend standards, by designing test suites and by chairing on-going interoperability testing for H.324. Creative is committed to producing standards- based product that is targeted at business and consumer markets. Creative's current success in the POTS videoconferencing market is a direct result of its ability to deliver low-cost, high-performance products that are easy to use and provide a rewarding end-user experience.

"To date, desktop videoconferencing solutions have been targeted primarily at corporate markets," said Tony Bowers, communications brand manager, Creative Labs Europe. "Creative believes that the next wave of growth will occur in the small and home office market for users wishing to improve communications with their corporate customers/partners, and in the home in the form of easy-to-use, value-priced video telephones for the PC that can be enjoyed by family and friends."

Creative plans to leverage its videoconferencing expertise and channel presence in delivering easy-to-use videoconferencing solutions with aggressive price points to these emerging markets. Our standards-based initiatives underscore our commitment to spurring market growth and providing maximum long-term value to our customers.

Commitment to POTS
Creative played a key role with its participation in the Study Group 15 -- the committee responsible for the ratification of the H.324 standard for videoconferencing over POTS. Creative has been contributing to the ITU (International Telecommunication Union) committee that adopted the standard in March 19, 1996. Creative's commitment to the POTS standard continues with the on-going interoperability testing most recently hosted by Creative and Intel last week.

Creative Chairs POTS Activity Group For The IMTC
Creative has been playing a key role in chairing the IMTC's POTS activity group - - the group responsible for the interoperability testing of H.324 products. The testing sessions are designed to ensure that videoconferencing products from all vendors can connect to each other over standard telephone lines using the H.324 standard. The ultimate goal is to provide the same worry-free connections end users experience with the telephone today. Creative has spearheaded this effort - - teaming with other industry vendors -- with the intent of preparing for the anticipated explosive growth in home videoconferencing over the next several years.

ISDN Strategy
Creative plans to leverage its strengths by producing complete, all-in-one solutions that meet customer expectations both at home and at work. As ISDN increases in popularity for use in the home and small office, Creative plans on producing high-quality, consumer-priced ISDN videoconferencing solutions that focus on performance and ease of use. Creative is partnering with a number of industry leaders to provide the best ISDN package, including the desktop tools, connectivity and support.

"At Creative we believe that offering the customer - either a business or and individual - the smoothest and most affordable path to desktop videoconferencing is the key to expanding the market," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. "Videoconferencing is no longer the communications solution of the future, it is the requirement of the present. Creative is proud to take the lead in helping to bring videoconferencing to the mass market. Whether for business or consumer use, whether through a POTS or an ISDN connection, we will provide the right solution."

Convergence of Technologies
Carving out a leadership role in videoconferencing was a natural process for Creative as the industry converges around the company's three areas of expertise: sight, sound and communications. By combining these three strengths into its video conferencing products, Creative is able to deliver cost effective, industry standard solutions.

About Creative ...
Creative Technology, Ltd., is the world's leading provider of multimedia hardware and solutions for personal computers, including sound, graphics, communications and video conferencing products with its Sound Blaster technology adopted as the world-wide standard sound platform for PCs.

Founded in 1983, Creative Technology's corporate headquarters are based in Singapore with international subsidiaries and affiliate offices in China, Europe, South Korea, Australia, Malaysia, Japan, Taiwan and the US. The European head office is based at Ruscombe near Twyford in the UK. In January 1994, Creative opened its European operations and technical centre in Dublin, which provides telephone support for European customers in six languages. Creative Labs Europe has grown eight-fold in the past three years with subsidaries in France, Spain, Italy, Germany, UK, Benelux, Denmark and Sweden. The European operation currently employs around 450 staff.