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U.S. International Trade Commission voted to institute an investigation of Apple iPod for infringement of Creative's ZEN Patent

Creative Asserts that the “ZEN Patent” Covers the User Interface of Both Creative's NOMAD and ZEN Portable Digital Media Players and Apple's iPod, iPod Nano and iPod Mini

Scotts Valley, Calif. - June 14, 2006 - Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today announced that the U.S. International Trade Commission has voted to institute an investigation of Apple Computer Inc. for the iPod's infringement of U.S. Patent 6,928,433, which Creative refers to as the "ZEN Patent." Creative asserts that the ZEN Patent covers the user interface in Creative NOMAD and ZEN portable digital media players and the iPod, iPod Nano and iPod Mini.

The investigation is based on a complaint filed by Creative Labs, Inc., of Milpitas, CA, and Creative Technology Ltd. of Singapore on May 15, 2006. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain portable digital media players that infringe Creative's ZEN Patent. Creative has requested that the ITC issue a permanent exclusion order and permanent cease and desist order.

By instituting this investigation (337-TA-573), the ITC has not yet made any decision on the merits of the case. The case will be referred to the Honorable Paul J. Luckern, an ITC administrative law judge, who will schedule and hold an evidentiary hearing, which is typically heard in approximately five to eight months. Judge Luckern will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission. Typically the Commission will issue its ruling in 12 to 15 months of the institution of the investigation.

The ITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the ITC will set a target date for completing the investigation.

Creative's filing with the U.S. International Trade Commission is posted at
http://edisweb.usitc.gov/edismirror/337-573/Violation/254079/287737/bba/754074.pdf
The full text and images of the ZEN Patent, U.S. 6,928,433 are available at www.uspto.gov.

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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 MuVo® and ZEN 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.

 

This announcement refers to products and pricing sold in the United States of America. MuVo and ZEN are trademarks of Creative Technology Ltd. in the United States and/or other countries. All other brand and product names are trademarks of their respective holder and are hereby recognized as such.