Creative Accelerates DVD Market By One Year With its Next Generation "PC-DVD Encore" With a Stunning Price of $379!

This Complete Hardware Solution Sets New Industry Standards for DVD Entertainment on the PC

The PC-DVD Encore solution provides: full compatibility to all CD-ROM formats including previously unsupported CD-Recordable media; blazing CD-ROM drive speed at up to24x; downloading of DVD data at 2.7MB/sec., twice the speed of previous generation DVD drives; movie theater quality video using Creative's DXR2 for high resolution picture enhancement; simultaneous display to PC and TV; professional Dolby Digital AC-3 output for 5.1 multi-channel amplifier; and showcase DVD titles.

"We believe our PC-DVD Encore solution is future-proofed. It overcomes the consumers' reluctance of adopting new technology too early," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. "Most industry watchers expect DVD to be a 1998 phenomenon because of the slow deployment of titles. We believe Creative can break this chicken and egg problem by providing the next generation DVD solution at an irresistible price of $379, with the intent of creating a huge installed base this year. Our future-proofed solution assures that our customers will not be disadvantaged by buying our PC-DVD solution now, because they are getting next years' technology and next years' price now! This aggressive market creation move, should create significant demand and motivate DVD content providers to flood the market with DVD titles.

"We are leaving the competition in the dust," said Sim. "They face colossal challenges as they are just coming out with their first generation solution at unappealing prices."

"We're excited to see Creative driving PC-DVD technology to the masses," said John Romero, game designer for id Software's QUAKE and founder of ION Storm. "DVD presents a huge opportunity for developers with a development platform that does not compromise creativity. Our upcoming new game, Anachronox, will definitely be a DVD title."

Creative PC-DVD Encore

The PC-DVD Encore solution includes its unique Dynamic Extended Resolution card, DXR2, which is a PCI-based decoder card that offers:

• Full color, smooth double scanned 60 fields per second playback, on a full-screen 1280 x 1024 resolution at high-refresh rates
• Crisp, high-definition, MPEG-2 video with DXR picture-enhancement technology
• Playback of Video-CD MPEG-1 movies
• Simultaneous display on TV in NTSC or PAL format using either composite video or high-quality S-Video
• Professional Dolby Digital (AC-3) output for 5.1 multi-channel amplifier

In addition, the PC-DVD Encore comes with a next-generation, double-speed DVD-ROM drive that is also capable of accessing CD-ROM data at up to 24x speed. It supports all popular CD formats including CD-R, (which was not supported by first-generation drives), and Video-CD MPEG-1 format that is not provided in many DVD players.

System Requirements

Creative PC-DVD Encore requires a 100 MHz or Pentium® (with a recommended 133 MHz or higher) or compatible PC, 16 MB RAM, SVGA graphics adapter with 1 MB RAM, PCI slot, Sound Blaster or 100 percent compatible audio card, amplified speakers or headphones and Microsoft® Windows® 95.

Creative PC-DVD Encore DXR2 will be available this summer, 1997. It targets the huge installed base of Pentium 100 MHz or higher PCs, which is estimated to be over 50 million systems as well as new systems in the high- performance OEM market.

Creative Technology Ltd. is the world's leading provider of advanced multimedia solutions for personal computers, including sound, graphics and Internet communications. 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 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.

Sound Blaster is a registered trademark and PC-DVD, PC-DVD Encore, Xtended Dynamic 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.

Safe Harbor for Forward Looking Statements Pursuant to The Private Securities Litigation Reform Act of 1995.

Except for the historical information contained herein, the matters set forth herein (expected product features, price points, shipping volume, future installed base and shipment dates) 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: reductions in the market value of products sold by Creative, including increases in supply, declines in demand or prices; increases in cost of goods for CD-ROM or DVD drives, board and chip-level products, and software products; the short product cycles that characterize most of Creative's products; Creative's reliance on sole sources for many of its chips, software and other key components; slow deployment or unavailability of DVD titles; and the timely ramp, delivery and market acceptance of new products, including Creative's DVD drives, DVD de-coder cards, advanced sound cards, communications and Internet-related products.