Creative Shipping PC-DVD Encore Dxr2 The World's Most Advanced PC-DVD Solution

Complete Package Offers DVD-ROM Drive, MPEG-2/Dolby Digital Card and Two Exclusive DVD-ROM Titles All for Only $379

MILPITAS, CA - October 14, 1997 - Creative Labs, Inc. (NASDAQ:CREAF), the world's leading provider of multimedia products for the PC, today announced that it's second-generation PC-DVD solution - PC-DVD Encore Dxr2 - is now available to consumers worldwide. PC-DVD Encore offers a spec-shattering combination of the latest advances in DVD technology delivered at a never-before-seen price-point.

Creative's PC-DVD Encore Dxr2 is a compelling evolution from its initial PC-DVD product - the industry's first - which was introduced in March of this year. It lets users experience full-length movies, enhanced games and the expansive storage capacity provided by DVD technology. PC-DVD Encore is now shipping via Creative's extensive worldwide network of retailers and distributors at the estimated street price of US$379.99.

Offering PC-users a dramatic expansion of their systems' capabilities, PC-DVD Encore features breakthrough developments such as DynamicXtended Resolution (Dxr2), and improved sound and video playback. The Dxr2 decoder board features a picture enhancement technology that gives PC-DVD Encore smoother, crisper, high-definition video playback when compared with today's DVD solutions. Additionally, PC-DVD Encore provides awesome video and audio enabled by MPEG2 compression and Dolby Digital (AC-3) audio output which delivers a truly immersive cinematic experience. The appeal of these capabilities extends to multimedia enthusiasts and power gamers as well as the general consumer.

"We were the first, and now we stand alone as the best when it comes to providing PC-DVD technology to the mass market," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. "DVD is a compelling technology that has attracted many players, but only a company with Creative's technical savvy, development abilities and world-class channel expertise could deliver such an elegant, complete product like PC-DVD Encore at a market-enabling price. We are defining and delivering on the promise of tomorrow's technology - today."

Features and Benefits

An overview of the features and benefits that comprise the PC-DVD Encore's sophisticated architecture includes:

"Creative is once again redefining the utility of the PC. They continue to show leadership by being the first company to develop the next generation of PC-DVD players," said Rob Enderle of GIGA Information Group. "Regarding the units themselves, the sound and picture clarity of the experience certainly merits wide attention."

Future Protecting

As the use of the PC expands to encompass rapidly increasing entertainment options, upgrades to system-enhancing innovations such as PC-DVD drives should become increasingly common. PC-DVD Encore provides a natural upgrade path for those who want to replace their CD-ROM drive with advanced technology that not only moves them forward in speed and capacity, but also is backward compatible. Industry experts predict that by the year 2000, sales of DVD will eclipse sales of CD-ROM units*.

With the introduction of PC-DVD Encore, Creative is affirming its solid position to lead the expansion of this segment of the industry. This reflects Creative's extensive experience in multimedia and the upgrade market. It also further illustrates Creative's ability to deliver future-proof technology at aggressive price points.

Adding value to the PC-DVD Encore package are several titles from prominent developers showcasing some of the retina-rousing entertainment DVD affords:

"DVD allows us to produce Wing Commander™ IV the way we always envisioned it - with cinematic quality. What we saw when we shot and edited the title is exactly what the consumer can now experience," said Mark Day, producer of the title.

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 PC's, and the company's global distribution network is among 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.

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*Source: International Data Corporation (IDC)

Sound Blaster is a registered trademark and PC-DVD, PC-DVD Encore, DynamicXtended Resolution and DXR are trademarks of Creative Technology Ltd. in the U. S. and other countries. All other product names mentioned herein are trademarks of their respective owners and are hereby recognized as such.

Wing Commander and Electronic Arts are trademarks or registered trademarks of Electronic Arts or its wholly owned subsidiaries.