CREATIVE LABS TAKES NEXT STEP IN 3D GRAPHICS STRATEGY

Multimedia Leader Licenses Additional 3D Graphics Core From 3Dlabs

SINGAPORE -- JANUARY 31, 1996 -- In its commitment to drive standards in
the multimedia industry, Creative Technology Ltd. (NASDAQ:CREAF), the
leading provider of multimedia products for personal computers, today
announced the licensing of additional 3D graphics technology. Long
recognized for establishing the standard for PC sound, Creative is working
with other industry leaders, including software vendors such as Microsoft,
hundreds of game developers and selected semiconductor suppliers, to
create standards for advanced 3D graphics.

In conjunction with that effort, Creative today announced a further step in
its 3D strategy, by licensing the PERMEDIA 3D graphics core technology
from 3Dlabs An extension to a long-standing relationship with 3Dlabs, this
license enables Creative to leverage its strengths in sound and
communications to design future solutions that incorporate
high-performance 2D and 3D graphics, audio and communications
capabilities.

Creative's continued leadership role in establishing a standard in 3D
graphics stems from the plethora of new 3D graphics semiconductor
technologies that have come to market in the past year. "3D graphics is
one of the hottest new technologies in the computer industry and we've
seen a near tidal wave of 3D silicon solutions," said Hock Leow, vice
president of the Video and Graphics Product Group at Creative Labs, the
U.S. subsidiary of Creative Technology. "Our goal is to make life very
simple for people trying to decide what 3D graphics products to buy and
for developers building titles that incorporate 3D visuals and audio. Our
Creative Graphics Library (CGL) technology provides the only solution
available today that gives users and developers this blanket of 3D
compatibility."

"3D technology is rapidly emerging as one of the hot spots in the industry
with an expected annual growth rate of 400 percent," said Mike Feibus,
principal at Mercury Research. "It's exciting to see industry leaders
working closely to set standards that will ease the choice for developers,
vendors, and ultimately consumers alike."

Creative has taken the following steps to help establish a 3D graphics
standard:

* 3D Blaster Shipping For 486 VL-BUS PCs -- 3D Blaster began shipping in
November 1995, and is the only 3D game card for the 486 VL-BUS PC. It
gives a 486 over twice the graphics performance of a Pentium 90. With an
estimated street price of $349, 3D Blaster includes a suite of five
next-generation immersive 3D titles including: EA/Bullfrog's HI-OCTANE and
MAGIC CARPET PLUS; Papyrus' NASCAR RACING; Looking Glass Technologies'
FLIGHT UNLIMITED; and Fenris Wolf's REBEL MOON.

* Operating System Support -- Creative is working closely with Microsoft in
support of Windows 95 Direct 3D to further expand the capabilities of the
PC. In fact, Creative's 3D graphics drivers for 3D Blaster will be
incorporated into Windows 95 Direct 3D SDK, which ensures compatibility
between new titles and 3D Blaster solutions.

* Common Development Platform -- Creative is working with leading
multimedia software developers to incorporate the CGL into their new
titles. Analogous to Creative's effort in creating Sound Blaster
compatibility, the CGL will ensure 3D graphics compatibility between those
titles and the various 3D graphics solutions available from Creative
Labs.

* Developer Support -- Creative has gained strong pledges of support from
more than 200 game developers to deliver exciting new 3D titles for the 3D
Blaster platform. Among these are EA, Bullfrog, Papyrus, Mindscape, id,
Virgin Interactive and a host of others.

* Silicon Support -- Creative is identifying leading silicon providers with
superior 3D technical expertise; to date the company has developed silicon
in concert with 3D Labs technology used in its flagship 3D Blaster product
for VL-Bus systems and licensed from 3Dlabs core 3D graphics technology
for developing future silicon solutions.

Creative Technology Ltd. develops, manufactures and markets a family of
sound and video multimedia products for IBM-compatible PCs. The company's
Sound Blaster sound platform enables IBM-compatible PCs to produce
high-quality audio for entertainment, educational, music and productivity
applications, and has been accepted as the industry standard sound
platform for PC-based software.

Creative Technology Ltd. was incorporated in 1983 and is based in
Singapore. Creative Technology's subsidiaries include Creative Labs, Inc.,
E-mu Systems, Inc., and ShareVision Technology, Inc. Creative also has
other subsidiaries in the U.S., Europe, Japan, Singapore, Taiwan, Malaysia
and China. The Company's stock is traded on the Nasdaq under the symbol
CREAF.
 
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