- Creative Technology Ltd was ranked second after Singapore Airlines in the Review 200 annual survey on Asia's Leading Companies (Singapore) conducted by the Far Eastern Economic Review. It is the fourth consecutive year that the company garnered the coveted award. It scored high marks in the categories 'high quality services/products, long term vision, innovative in responding to customer needs, and companies that others try to emulate.'
- Launched Nomad® Jukebox Zen, the powerful and stylish MP3 player that can store up to 8,000 songs, and yet fit into the pocket. With a gigantic 20 GB capacity hard drive, it can double up as a portable storage device for storing photos, text, videos and other data files.
- Creative's manufacturing plant in Malacca, Malaysia, Cubic Electronics Sdn Bhd, was officially opened by Malaysian Prime Minister Dr Mahathir. It is Creative's largest manufacturing facility worldwide.
- Creative completed its acquisition of Nasdaq-listed 3Dlabs Inc., Ltd., the leading workstation graphics company that provides graphics accelerator solutions for professionals in Computer Aided Design (CAD), Digital Content Creation (DCC), and visual simulation markets.
- Introduced Sound Blaster® Extigy, the first external Sound Blaster in Creative's history. The Sound Blaster Extigy delivers stunning 24-bit 96kHz multi-channel audio playback and 100dB signal-to-noise ratio (SNR) to the notebook or desktop via the Universal Serial Bus (USB) port. It was featured in the "Top Picks of CES" by CNET and ZDNET.
- Creative announced its SB1394 Certification Program, designed to ensure seamless operation of IEEE-1394 devices with Creative's Sound Blaster Audigy sound card family.