28th June 1996 - Creative Technology Ltd. (Nasdaq: CREAF) announces that it will invest up to $186 million in a major R&D programme on multimedia and communications technologies capability development. This five-year programme is supported by the Research Incentive Scheme for Companies (RISC) of the National Science & Technology Board (NSTB).

By embarking on this major R&D programme, Creative plans to build up a set of core competencies in multimedia and communication technologies to further enhance the company's overall competitiveness. In strengthening the foundation of technologies, Creative will enhance its leading position in the multimedia market, introduce innovative products to the market for targeted segments and advance quickly into high potential markets such as 3D graphics. The new R&D programme will include technology development in areas of DVD and optical storage, 3D graphics, advanced telephony and videoconferencing. Core technologies for audio delivery over Internet and advanced audio and music synthesis technologies will also be developed and enhanced under the initiative.

The strength of Creative's R&D manpower will increase by around 120 staff, in addition to the current strong team of research scientists and engineers (RSEs) already existing. Creative will also be exploring collaborative opportunities with national research institutions and universities in this new R&D programme.

"We are very pleased to receive this insightful support from the National Science & Technology Board which will further augment our R&D efforts," said Mr Sim Wong Hoo, Chairman/CEO of Creative Technology. "Having helped place Singapore on the world map as the top producing country for multimedia sound cards, we see Creative's work has paralleled NSTB's efforts in equipping Singapore and its people with the technological advantage in today's highly competitive marketplace. NSTB's support will further fuel Creative's drive to deliver compelling advanced technology products to meet the needs of the business and home users; which may in turn help create more winning fields for Singapore to lead in the high tech industry."

"This is the largest single R&D commitment by any private company in Singapore under RISC. It is a clear indication that R&D is crucial to develop the necessary competitive edge for sustained growth and profitability," said Mr Teo Ming Kian, Chairman of the National Science & Technology Board. "Creative Technology has travelled the road from a fresh new start-up to a global company competing in the big league. Despite its trials and tribulations, and probably because of them, it serves as a model for would-be entrepreneurs to emulate".

Mr Teo added, "Considering the need to nurture such entrepreneurial start-ups, NSTB has put in place, support measures that will help such entrepreneurs and innovators to have an easier start. The purpose is to bring about an environment of dynamism, creativity and an abundance of opportunities for technology acquisition."

Established in 1991, the National Science & Technology Board aims to facilitate technology advancement through R&D. This is achieved through various facets of support, including investment programmes like the Research Incentive Scheme for Companies. Through RISC, NSTB will continue to encourage companies in developing their research and development capabilities in areas of strategic technology, with the longer term objective of increasing Singapore's industrial competitiveness. To date, more than 60 RISC-funded centres of competence have committed more than $2 billion worth of R&D investment. This includes MNCs and local companies with more than 60% of the R&D programmes in the areas of the IT & electronics.

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.