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Creative Introduces a New Small and Beautiful Way to FIND YOUR ZEN - The ZEN V Plus

Tiny Player Lets You Have Your Music, Photos, Video and FM Radio at Your Fingertips

SINGAPORE - June 21, 2006 - Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today introduced a new small and beautiful way to FIND YOUR ZEN - the ZEN V Plus MP3, photo and video player with built-in FM radio.

Amazingly small and lightweight, the ZEN V Plus is ergonomically designed so your music, pictures and video are right at your fingertips. So tiny it tucks away perfectly inside the coin pocket of your jeans, the ZEN V Plus has such great curves and contours and is so lightweight that you'll almost forget it's there except for its phenomenal sound quality. Its beautiful 1.5-inch color OLED screen displays stunning digital photos, video and color menus.

“We designed the ZEN V Plus to provide an incredible user experience - it's a player that you don't want to put down once you hold it in your hand. We developed the ZEN V Plus with a look and a user experience that create the true feeling of ZEN,” said Sim Wong Hoo, chairman and CEO of Creative. “Photos and videos and our patented ZEN user interface look so vivid on the stunning color screen and the sound quality is awesome; it's surprising for such a tiny player.”

The ZEN V Plus supports music subscription services including Yahoo! Music Unlimited, Urge, Napster To Go, and Rhapsody To Go, in addition to supporting Audible audio books and pay-per-download services including Soundbuzz. Each player includes a line-in port for direct recording from a CD player or other audio device, and a voice recorder for capturing notes on the go.

The ZEN V Plus includes all of the following features:
• The smooth contours and tiny size of the ZEN V Plus enable it to fit naturally in your fingertips or to tuck away easily in a small pocket or purse. Available in glossy black or white with fun color accents of orange, green or blue, the ZEN V Plus looks as great as it feels.
• Special coating on the entire player to help prevent scratching.
• Vibrant 1.5-inch OLED screen for stunning video, photos and album art.
• Music Subcription Support - from major services such as Yahoo! Music Unlimited, Urge, Napster To Go and Rhapsody To Go, support for Audible audio books and pay-per-download services including Soundbuzz.
• Built-in FM radio with 32 station presets.
• A voice recorder for capturing notes or lectures.
• Syncs with Microsoft Outlook - includes a built-in organizer with Calendar, Contacts and Tasks.
• Direct CD Recording - with line-in connection and a Sync Track button to separate different songs recorded from an entire CD.
• Incorporates the most popular “ZEN Patent” user interface - for intuitively accessing music, photos, video and color menus and displaying album art.

Pricing and Availability
The ZEN V Plus will be available in August for S$329 for the 4GB model in glossy black with blue accents, S$269 for the 2GB model in glossy black or white with green accents, and S$199 for the 1GB model in glossy black or white with orange accents.

The ZEN V Plus will be available at the Creative Stores, online at store.creative.com/sg and other retail stores in Singapore.

Creative has also introduced the ZEN V, with all of the features of the ZEN V Plus except video and FM playback. Available in July for only S$229 for the 2GB model in glossy black or white with green accents, the ZEN V is also available for only S$179 for the 1GB model in glossy black or white with orange accents.

The ZEN V will be available at the Creative Stores and online at store.creative.com/sg.

Accessories
In addition to a soon-to-be announced docking speaker system designed for the ZEN V Plus, a variety of optional accessories will be available in July, including:
• Black or white arm band - ideal for exercising.
• Multi-colored silicone skins to even further personalize the cool design.
• Leather and closed cases to protect the players.
• Car charger, wired remote and power adapters for expanded versatility.

For more information on Creative products, please visit www.asia.creative.com.

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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 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.

This announcement relates to products launched in the Asia Pacific. Availability is subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Creative Sound Blaster, ZEN and MuVo are trademarks or registered trademarks of Creative Technology Ltd. in the United States and other countries. All other trademarks are the property of their respective owners.