Creative And Corel Partner On Linux Desktop Development

Strategic Alliance Brings Creative's Sound Blaster Live and Personal Digital Entertainment Solutions Support to Corel® LINUX® OS and Applications

MILPITAS, CA - December 16, 1999 - Creative Technology Ltd. (NASDAQ: CREAF), the leading provider of multimedia solutions for personal entertainment and productivity, and Corel Corporation (NASDAQ: CORL, TSE: COR), a leading Linux software publisher, today announced an agreement that will advance the development of Linux applications for high-quality audio and video. Creative will work with Corel to add support for its line of Sound Blaster Live! digital audio solutions and its line of Personal Digital Entertainment (PDE) Internet Solutions that include Internet devices, applications and services.

As part of this collaborative effort, Corel will distribute its upcoming Linux-based suite of applications with support for Creative's industry-standard audio solutions and PDE devices bundled in. Based on the agreement, Creative and Corel will collaboratively develop Linux drivers for Creative's branded solutions. Creative's PDE Internet Solutions include the NOMAD line of portable audio devices and the WebCam Go line of portable PC cameras. Sound Blaster Live! drivers for Linux are already available and will, under the agreement, be customized for Corel's distribution.

"This joint development effort with Creative is an endorsement of Corel's Linux initiatives," said Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. "The joint effort with Creative will generate significant momentum behind our development effort for Linux consumer applications. Including support for the popular Sound Blaster audio and Personal Digital Entertainment solutions will further accelerate development for consumer-friendly Linux-based applications for productivity, entertainment, Internet audio and video."

"Support for Corel's Linux applications establishes an expanded market for Creative's branded products for high-quality audio and personal digital entertainment solutions," said Craig McHugh, president of Creative Labs, Inc. "We're pleased to be working with Corel, a leading Linux developer, to bring these exciting products to the Linux community."

About Creative

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education and productivity tools market. Creative's products are marketed through the OEM, systems integrators and retail channels under a variety of trademarks, including the "Blaster" family name. With the new Sound Blaster PCI standard, Creative has produced a solution that utilizes a combination of hardware and software for near-perfect compatibility with existing MS-DOS® and Windows® titles. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution, research and development being carried our through an extensive, global network of subsidiaries in North America, Europe, Asia and Africa.

Corel Corporation

Corel Corporation is an internationally recognized developer of award_winning business productivity, graphics and operating system solutions on the Windows®, Linux®, UNIX®, Macintosh® and Java™ platforms. Corel also develops market-leading, Web-based solutions including applications, contents, e-commerce and online services. For access to these services and more information go to http://www.corel.com or http://>www.corelcity.com. Corel is headquartered in Ottawa, Canada. Corel's common stock trades on the NASDAQ Stock Market under the symbol CORL and on the Toronto Stock Exchange under the symbol COR. Corel Corporation is an internationally recognized developer of award_winning business productivity, graphics and operating system solutions on the Windows®, Linux®, UNIX®, Macintosh® and Java™ platforms. Corel also develops market-leading, Web-based solutions including applications, contents, e-commerce and online services. For access to these services and more information go to www.corel.com or www.corelcity.com. Corel is headquartered in Ottawa, Canada. Corel's common stock trades on the NASDAQ Stock Market under the symbol CORL and on the Toronto Stock Exchange under the symbol COR.

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Sound Blaster and Blaster are registered trademarks of Creative Technology Ltd. in the U.S. and other countries.

Corel, WordPerfect, CorelDRAW, Corel LINUX OS, PHOTO-PAINT, Ventura Publisher, Print House, Print Office, Gallery, Custom Photo and the Go Further logo are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited. Linux is a registered trademark of Linus Torvalds. UNIX is a registered trademark of The Open Group. All other product names are trademarks of their respective companies. All other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.