Theresa Pulido Karen Gordon Creative Labs, Inc. Copithorne & Bellows
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 Barry Raskin, director of marketing for ShareVision at Creative Labs, Inc. "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 at 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.
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 Telecommunications 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 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.
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 an individual -- the smoothest and most affordable path to desktop videoconferencing is the key to expanding the market as a whole," 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."
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.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
The future product availability dates, future financial guidance and other non-historical information contained herein and/or in the accompanying conference call are subject to the attached cautionary statements which are provided pursuant to The Private Securities Litigation Reform Act of 1995.
Creative Technology Ltd. is the world's leading provider of advanced multimedia solutions for personal computers, including sound, graphics, communications and video conferencing products. The company's Sound Blaster technology has been accepted as the worldwide standard sound platform for PCs, and the company's global distribution network is the most extensive in the multimedia industry. Creative is focused on enhancing the overall user experience by providing powerful, enabling, high-value technology for the mass market.
Creative will be demonstrating Internet Blaster 33.6 PnP, the ShareVision ISDN solution, and its entire line of multimedia products in New York at PC Expo, June 18-20 in the Jacob K. Javits Convention Center, Booth #3862.
Sound Blaster is a registered trademark and Blaster is a trademark of Creative Technology Ltd. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.
Safe Harbor for Forward Looking Statements:
Except for the historical information contained herein and in the accompanying conference call on today's date, the matters set forth herein and in the accompanying conference call (including our guidance on future revenues, margins, expenses and earnings) are forward looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. Such risks and uncertainties include, among others: potential fluctuations in quarterly results due to the seasonality of Creative's business and the difficulty of projecting such fluctuations; reductions in the cost of products sold by Creative; the short product cycles that characterize most of Creative's products; the increasing proliferation of sound functionality at the chip and OEM level; Creative's reliance on sole sources for many of its chips and other key components; the timely ramp, delivery and market acceptance of new products, including Creative's graphics accelerator, video conferencing, CD-ROM drive and communications products; the availability of operating capital and capital to refinance Creative's outstanding long term debt on acceptable terms; the volatility of share prices for companies in Creative's industry and the effect on those prices of events beyond Creative's control; and the other risk factors described in Creative's filings with the Securities and Exchange Commission over the past twelve months.
Copyright ©1995, 1996
Creative Labs, Inc.