CONTACT INFORMATION

Patrick Verderico      
Creative Technology Ltd.

Creative Announces Write-Off of Investment in Start-Up

SINGAPORE -- June 30, 1995 -- Creative Technology Ltd., today announced that it would be writing off its investments in Creative Insights, Inc., a start-up company located in Cupertino, California that had sought to develop computer games, toys and peripherals.

Creative Insights indicated yesterday that it would cease normal business operations and may seek reorganization or liquidation.

There will be a non-cash write-off by Creative Technology of approximately $5 million. The write-off will affect Creative Technology's financial results for the current quarter.

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.

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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.