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Creative Announces Skype Internet PhonePLUS - Enables Skype Calls Directly Through A Router Without Requiring A PC

Las Vegas, Jan. 5 - Creative (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today announced the Skype Internet PhonePLUS, a phone for the home or office that enables users to connect directly to a router to make free Skype™ calls.

The Creative Skype Internet PhonePLUS functions just like a traditional phone and provides a new way to experience Skype without requiring a PC. The Creative Skype Internet PhonePLUS connects to any broadband router via an Ethernet cable. A full-color 2.5-inch color screen displays the intuitive Skype interface, and five-way navigation buttons provide easy menu browsing and setup.

"We have always worked hard to make sure that Skype is fun and easy for consumers," said James Bilefield, vice president of business development for Skype. "Collaborating with Creative to give our users an alternative to being connected to the PC is yet another way Skype has made its service even more convenient and user-friendly."

"Skype has revolutionized long distance communications by providing free Internet calling," said Brad Anderson, director of product marketing for Creative. "With the Creative Skype Internet PhonePLUS, you get the same great features of Skype without having to connect to a PC."

New Skype users can download the free Skype application at skype.com, and existing Skype users can simply configure settings on the Creative Skype Internet PhonePLUS phone so they are immediately recognized by the Skype application. For Skype users who call friends and family who have not downloaded the Skype application, the SkypeOut™ function enables calling to any phone number in the world. With SkypeIn™ users can purchase a regular phone number to be easily reached by friends and family who may not have access to Skype. SkypeIn, SkypeOut and Skype voicemail™ are inexpensive and function easily with the Creative Skype Internet PhonePLUS.

Availability
The Creative Skype Internet PhonePLUS will be available in spring 2006 in North America or for purchase online at us.creative.com.

About Creative
Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment products for PC users. 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 Zen and MuVo® MP3 players. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.

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This announcement relates to products launched in the United States. The product names, prices and availability are subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Sound Blaster and Zen are trademarks or registered trademarks of Creative Technology Ltd. in the United States and other countries. All other brand names are trademarks of their respective owners.