Creative Drives PC-DVD Into The Mainstream With Complete Line Of Solutions Starting At $149.99

New Family of PC-DVD Solutions Broadens Availability of DVD on the Desktop

MILPITAS, CA - March 10, 1998 - Creative Labs, Inc. (NASDAQ:CREAF), the world's leading provider of multimedia products for the PC, today announced a new family of PC-DVD™ products that include six new, aggressively-priced solutions. In line with its strategy to design and develop products that address key segments of the PC market through all channels, Creative is delivering its highly-acclaimed PC-DVD technology to the mass market at accessible price points. The new line includes a stand-alone PC-DVD drive -- the Creative Blaster® DVD-ROM -- for an estimated street price of US$149.99. Creative's new family of PC-DVD solutions are designed for home users, corporate users, and multimedia and gaming enthusiasts.

Creative's broad offering of PC-DVD products are designed to strategically target different segments of the PC market with the latest DVD technology. The new offerings let the consumer select aspects of PC-DVD technology to suit their individual needs, including enormous storage capacity (up to 17 gigabytes of data), enhanced full-motion, full-screen video plus Dolby Digital (AC-3) audio. These solutions can be used in computer-based training, archiving, interactive educational programs, for distribution of data, hybrid Internet applications, entertainment titles and much more.

"With our new line of PC-DVD products, anyone interested in DVD technology can now select from multiple, affordable, easy-to-install solutions," said Sim Wong Hoo, chairman and chief executive officer at Creative. "We're allowing our customers the ability to create their PC-DVD environment by choosing the PC-DVD components they need."

Creative Family of PC-DVD Solutions

Based on Creative's highly acclaimed Dynamic Xtended Resolution technology (Dxr™2), and its second-generation drive technology, the new line includes :

For more information on these and Creative's entire line of solutions, please visit Creative's award-winning Web site, The Creative Zone at www.creativelabs.com.

Creative Labs, Inc., is a wholly-owned subsidiary of Creative Technology Ltd. and serves as the company's U.S. Headquarters. Creative Technology's other U.S.-based subsidiaries include Cambridge SoundWorks, Inc., Digicom Systems, Inc., EcTiVA, Inc., E-mu Systems, Inc. and Ensoniq, Inc.

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative's products are marketed through the OEM, systems integrator and retail channels under a variety of trademarks, including the "Blaster" family name. Sound Blaster® has become the multimedia industry's de facto audio standard. Sound Blaster is an audio platform consisting of a sound card or chipset, software drivers and bundled software applications that enable PCs to produce high quality audio. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development being carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa.

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This announcement relates to products whose launch are in the United States of America. The product names, contents, prices and availability may differ elsewhere in the world according to local factors and requirements.

Sound Blaster is a registered trademark and PC-DVD, PC-DVD Encore, Graphics Blaster Exxtreme, Dynamic Xtended Resolution , DXR and PC KIT 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.

Safe Harbor for Forward Looking Statements:

Except for the historical information contained herein, the matters set forth herein (including information on future products, future marketing efforts, and 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 market value of products sold by Creative, including increases in supply or declines in demand or prices 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; the increasing proliferation of sound functionality in new products from new competitors and at the application software, chip and operating system levels; Creative's reliance on sole sources for many of its chips and other key components; the timely development, ramp, delivery and market acceptance of new products, including Creative's next generation sound chips, and its graphics accelerator, video conferencing, CD-ROM and DVD drives, DVD encoder cards, communications and Internet-related products; the availability of operating capital on acceptable terms; the volatility of share prices for companies in Creative's industry and the effect of those prices or other events beyond Creative's control; and other risk factors described in Creative's filings with the Securities and Exchange Commission over the past twelve months.