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Creative Wins Second Consecutive "Best Of CES" Award At Consumer Electronics Show

Creative ZEN Portable Media Center Draws Huge Crowds

LAS VEGAS, Nev. - Jan. 12, 2004 - Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital entertainment products for PC users, announced today that the Creative ZEN Portable Media Center won the TechTV "Best of CES" award for the Portable Audio and Video category. This prestigious award recognizes and honors the most outstanding new consumer technology products that debuted at the 2004 International Consumer Electronics Show. The TechTV appointed panel of technology journalists selected winners in each category according to their innovative appeal, usability, usefulness, and value.

This is the second consecutive year that Creative has won a "Best of CES" award. Last year the Creative Prodikeys, the world's first combination music and PC keyboard, won the "Best of CES" award in the Home Audio category.

"We have won the Best of CES award two years in a row, yet in two entirely different product categories," said Sim Wong Hoo, chairman and CEO of Creative Technology Ltd. "This shows how Creative is leveraging the power of the PC to become a force to be reckoned with in consumer electronics. It also shows that a cutting edge and innovative product from Creative, a leader in the PC space, can win hearts and minds in the consumer electronics space."

Based upon the Microsoft XP Media Center Edition, the Creative ZEN Portable Media Center shown at CES enables portability of up to 80 hours of video, 5,000 songs, or 50,000 digital images on a sleek, handheld device with an intuitive interface. Microsoft chairman and chief software architect Bill Gates featured the Creative ZEN Portable Media Center in his keynote address at the 2004 International CES.

TechTV, an established authority on the hottest new products and technology, chose the best and brightest from more than 5,000 new products making their debut at the 2004 International CES. The contest was only open to exhibitors at the show and only to those products that were introduced at the 2004 International CES or available for sale after Dec. 1, 2003.

"Our judges were really impressed with this year's submissions and the level of innovation and design," commented Andrew Hawn, TechTV's product lab director, and coordinator of the contest. "Each year the competition seems to get tougher and tougher, but we know consumers will really love these 10 new products."

The winners were announced on Saturday, January 10, 2004 at an awards ceremony that took place in the Grand Lobby at the Las Vegas Convention Center, where the show is taking place. CES attendees, show finalists, TechTV staff and talent, judges and a host of media outlets gathered at the event to witness the unveiling of this year's finalists and winners. Additional information on each of the finalists and winners can be found at www.techtv.com/ces.

In addition to exclusive, live coverage from CES on "The Screen Savers" and "Tech Live," "Fresh Gear" will air coverage from the "Best of CES" on Tuesday, January 13 at 8:30pm EST.

For more information about Creative, visit us.creative.com.

About Creative
Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment products for users of the personal computer and the Internet. Famous for its Sound Blaster® sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed NOMAD Jukebox. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.

About TechTV
TechTV is the cable network that showcases the smart, edgy and unexpected side of technology. By telling stories through the prism of technology, TechTV intrigues viewers with everything from help and information to cutting-edge factual programming to outrageous late-night fun. TechTV viewers are highly interactive and passionate about engaging in the television experience and log a monthly average of 1.6 million unique visitors to techtv.com. TechTV is currently available in over 40 million homes in the US and distributes content to more than 70 countries.

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The Creative logo and Sound Blaster are registered trademarks of Creative Technology Ltd. in Singapore and other countries. NOMAD is a registered trademark of Aonix and is used by Creative Technology Ltd. and/or its affiliates under license.

CONTACT INFORMATION:
Phil O'Shaughnessy / Wynne Leong
Creative Labs, Inc.
(408) 546-6773 / (65) 6895 4120
poshaughnessy@creative.com / wynne.leong@ctl.creative.com