CONTACT INFORMATION
     
     Steffanee White                    Michele Janin   
     Creative Labs, Inc.                Cunningham Communication, Inc. 
     (408) 428-6600                     (408) 982-0400
     
                                                     For Immediate Release
     
                        Creative Technology Licenses 
                      Intel's Indeo* Video Technology 
     
            Intel's i750* Video Processor Family to be Incorporated 
                into Future Digital Video Products from Creative
     
     SINGAPORE -- November 8, 1993 -- Creative Technology Ltd. has 
     announced that it has licensed Intel's standard-setting Indeo* video 
     technology and will incorporate Intel's i750* Video Processor family 
     into future digital video product lines. 
     
     Because of its programmability, Intel's i750 video processor family 
     will allow Creative to implement Intel's scalable Indeo video 
     compression, as well as its own proprietary video compression 
     algorithms designed for video conferencing into new video offerings.  
     Programmability also enables end-users to upgrade their systems with 
     various compression algorithms.  Further, the i750 video processor 
     supports the one-step recording capability of Indeo video.  This 
     one-step recording process requires less hard disk storage space by 
     eliminating the need for video files to be saved to the hard disk and 
     then later compressed.
     
     "The i750 video processor family offers the ideal format for 
     third-party hardware developers to provide high-performance digital 
     video solutions on a single add-in board.  Creative believes that 
     Intel's technology will also be particularly useful for porting 
     ShareVision's compression technology into new products for the 
     emerging desktop video-conferencing marketplace," said K.S. Chay, 
     president and COO of Creative Technology.  "This license agreement, 
     along with other industry partnerships, strengthens Creative's 
     commitment to supporting multiple video formats, unlike other 
     companies that support only proprietary compression formats."
     
     "We're delighted that Creative Technology, a company recognized as a 
     leader in PC audio and video products, has licensed Intel's Indeo 
     video and will use i750 video processors to broaden its product 
     offerings," said Dennis Carter, vice president of corporate marketing 
     for Intel.  "Creative's decision to license Indeo video reflects the 
     growing industry support for it as the technology of choice for 
     desktop PC video."
     
     Intel's Indeo video is a software technology that allows for 
     software-only playback on Intel486* and Pentium* processor-based 
     personal computers.  Indeo video delivers "free" video playback to the 
     desktop by eliminating the need for add-on hardware to 
     playback video files.  Indeo video is supported in Microsoft's Video 
     for Windows, IBM's OS/2 R2.1 and Ultimedia Video In, and Apple 
     Computer's QuickTime for Windows.  Many leading multimedia software 
     applications, such as Adobe's new Premiere for Windows digital 
     movie-making tool, include drivers to support Intel video format 
     clips.
     
     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 de facto 
     industry standard sound platform for PC-based software.  
     
     Creative Technology Ltd was incorporated in 1983 and is based in 
     Singapore.  Creative Labs, Inc., the company's primary U.S. 
     subsidiary, is located in Milpitas, California.  Creative Technology 
     Ltd also has other subsidiaries in the U.S., U.K., Taiwan and China.  
     The Company's stock is traded on the NASDAQ National Market System 
     under the symbol CREAf.
     
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