Creative Partners With On-line Companies to Introduce Multimedia Products for the Internet

MILPITAS, CA — September 24, 1996 — In its commitment to bring powerful multimedia solutions to the Internet, Creative Technology Ltd. (NASDAQ:CREAF), the world’s leading provider of multimedia products for personal computers, has entered into four significant partnerships with on-line technology companies: NetSpeak Corp., Seer Systems, Inc., Onlive! Technologies and Progressive Networks.

With these agreements, Creative will greatly expand its product line to integrate advanced audio, video, graphics and communications technology into vibrant, media-rich Internet solutions for the consumer.

The industry is moving towards multimedia over the Internet and Creative believes it is in a powerful position to take advantage of and leverage its unique strengths as a leader in bringing multimedia products to the desktop and home. Creative believes that anyone who owns a PC has the ability to experience a fully emmersive, exciting and entertaining world directly from his or her computer. Through its agreements with NetSpeak, Seer, Progressive Networks and Onlive!, Creative will create affordable, easy-to-use products and develop exciting new technologies that bring Internet multimedia to the masses.

Seer Systems, Inc.
In its desire to develop and deliver next generation audio solutions, Creative and Seer are developing high- quality fidelity sound technology for the Internet through an exclusive licensing and development agreement. As a result of its relationship with Seer, Creative will introduce its first audio product specifically for the Internet. Creative NetSynth™ is a Sound Blaster compliant software synthesizer that plays high-quality MIDI on-line. The product combines powerful wave-table synthesis technology and up to 32- note polyphony so users can experience high quality professional audio on the Internet.

In addition, Creative NetSynth includes one WaveGuide instrument, using Sondius® synthesis technology from Stanford University, giving customers a sample of how characteristics of real instruments and sounds can be simulated very accurately through physical modeling. Creative NetSynth will be distributed over the Internet in the fourth quarter on Creative’s World Wide Web site.