- Set up a new company, Creative Labs (UK) Ltd. as Creative's European headquarters.
- Creative and Computamart Pty Ltd announced a joint venture to form a new Creative sales & marketing centre known as Creative Pacific Pty Ltd in Sydney, Australia.
- Creative and I-O Data Device, Inc. set up a joint venture company, Creative Media K.K., located in Tokyo, Japan.
- Acquired ShareVision® Technology Inc. which develops videoconferencing products that allow users to communicate using video, voice and graphics anywhere in the world over a single regular analog telephone line while simultaneously collaborating on Windows applications.
- Opened its US-based Technical Support Center in Stillwater, Oklahoma to offer expanded operational hours and more technical agents to provide technical support to end users.
- Shipped Sound Blaster 16, which includes Creative's speech recognition application, Creative VoiceAssist that allows customization of any Windows application with voice commands.
- Acquired E-mu Systems®, Inc, a leading developer and manufacturer of innovative audio products based on digital sampling technology for musical instruments and multimedia markets.