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Creative Introduces Live! Cam Voice - The Only WebCam Featuring Ground-Breaking Directional Audio And Noise Reduction Technology

Live! Cam Voice Features Dual Microphones with Directional Adaptive Array Audio Technology for Stunning Sound Quality in Video Instant Messaging

MILPITAS, Calif. - May 17, 2006 - Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today announced the Live!® Cam Voice web camera with breakthrough Directional Live! Audio™ technology for unrivaled voice clarity and noise reduction during video instant messaging. The Live! Cam Voice will be available at us.creative.com and major U.S. retailers this month for only US$99.99.

In just minutes, the stylish, sophisticated Live! Cam Voice is set up and ready for video instant messaging. Creative Directional Live! Audio technology integrates dual adaptive array microphones to capture the user's voice while eliminating background and environmental noise coming from outside the webcam's field of view. This enables users to speak naturally while video instant messaging in public places.

The Live! Cam Voice delivers true hardware 1.3 megapixel resolution for photo and video capture - over four times the quality of standard web cameras. Users can snap still photos up to 5.0 megapixels - the highest resolution of any web camera available. To further enhance video and image quality, the Live! Cam Voice incorporates Live! View™ technology to maximize the number of frames that are displayed per second, enabling exceptional low-light performance and delivering rich, saturated color.

"Noisy coffee shops, airports and offices are no longer an unacceptable environment for video instant messaging - the Live! Cam Voice blocks out all the distracting conversations and noise around you so you can clearly communicate wherever you are" said Dr. Jeff Stoen, general manager for cameras at Creative. "The Live! Cam Voice features innovative dual array microphones, so even when you're in public, you can have private conversations that sound as clear as a phone call."

The Creative Live! Cam Voice includes a robust software suite:

• Creative WebCam Center - a powerful and user-friendly application that enables users to remotely monitor a Creative web camera, set up motion detection alerts, create time lapse video, and much more. The included Creative Advanced Video FX adds fun stylized video effects.
• Creative Photo Manager and Photo Calendar and Muvee autoProducer enable users to organize photos, add cool effects to video chats, and make professional-looking home movies.
• SightSpeed - award-winning software application enables users to make the best quality video and voice calls over the Internet.
• OrbSecure - for remote access to a webcam using any Internet-enabled device.

Pricing and Availability
The Live! Cam Voice will be available this month at us.creative.com for only US$99.99. For more information on Creative web cameras, please visit www.creative.com/webcams.

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® portable audio 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. Availability is subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Sound Blaster, Live! Zen and MuVo are trademarks or registered trademarks of Creative Technology Ltd. in the United States and other countries. All other brand or product names are the property of their respective owners.