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Creative Technology Continues Plans for August 1 Voluntary Delisting From NASDAQ with Distribution of Letter to Shareholders

SINGAPORE - July 10, 2007 - Creative Technology Ltd. (NASDAQ: CREAF) today announced that the Company has sent a letter to shareholders in the U.S. regarding the Company's previously announced plan to voluntarily delist its Ordinary Shares from the NASDAQ Global Market ("NASDAQ") with the last day of trading on the NASDAQ August 1, 2007.

As a follow on from the Company's previous announcement on the delisting, Creative sent a letter to shareholders to provide more information on how they can trade their shares on the Singapore Exchange Securities Trading Limited ("SGX-ST" or the "Singapore Exchange") after August 1. The contents of the letter are as follows:

On June 14, 2007, Creative Technology Ltd. issued a press release announcing our Company's intention to voluntarily delist from the NASDAQ Global Market ("NASDAQ") with August 1, 2007 as the last day of trading on the NASDAQ and that the Company will continue with other steps necessary to facilitate the termination of its U.S. public reporting requirements. The Company will continue to maintain its primary listing on the Singapore Exchange Securities Trading Limited ("SGX-ST" or the "Singapore Exchange"). The delisting from NASDAQ will not affect the status of Creative's shares on the Singapore Exchange.

As stated in the press release, the Directors of Creative believe it to be in the best interest of the Company and its shareholders for Creative to take the steps to seek to delist from NASDAQ and terminate its U.S. reporting obligations while maintaining its SGX-ST listing.

As we approach the August 1 date for our voluntary delisting from NASDAQ, we would like to provide you with some additional information as well as a copy of the June 14 press release.

You may continue to trade Creative Ordinary Shares on the NASDAQ through August 1, 2007. After August 1, 2007 you could sell your Creative Ordinary Shares on the Singapore Exchange after you transfer these shares from your U.S. brokerage account to an account with The Central Depository (Pte) Limited, the Securities Clearing and Depository division of the Singapore Exchange. You need to check with your U.S. broker to see if they can perform this function for you and explain the process, procedure and timeline to you. If your current broker cannot perform this function, you would need to select a broker who can. Many major U.S. brokers have these capabilities. Please check the Investor Relations section of Creative's website at www.us.creative.com/corporate/investor for any further updates.

You can access pricing and other information on Creative on the Singapore Exchange at www.sgx.com. The stock is listed on the Singapore Exchange as "Creative 50".

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

Safe Harbor for Forward-Looking Statements Under The Private Securities Litigation Reform Act of 1995:
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include: Creative's ability to timely develop new products that gain market acceptance and to manage frequent product transitions; competitive pressures in the marketplace; Creative's ability to successfully integrate acquisitions; potential fluctuations in quarterly results due to the seasonality of Creative's business and the difficulty of projecting such fluctuations; possible disruption in commercial activities caused by factors outside of Creative's control, such as terrorism, armed conflict and labor disputes; a reduction in demand for computer systems, peripherals and related products, including Creative's products, as a result of poor economic conditions and social and political turmoil; the proliferation of sound functionality in new products from competitors at the application software, chip and operating system levels; the failure of cost-cutting measures to achieve anticipated cost reduction benefits; the continued deterioration of global equity markets; increased exposure to excess and obsolete inventory; Creative's reliance on sole sources for many of its chips and other key components; component shortages which may impact Creative's ability to meet customer demand; Creative's ability to protect its proprietary rights; a reduction or cancellation of sales orders for Creative products or other unexpected or unplanned events that could cause Creative to miss its revenue guidance, operating expense projections or negatively impact its margins; accelerated declines in the average selling prices of Creative's products; the vulnerability of certain markets to current and future currency fluctuations; the effects of restricted fuel availability and rising costs of fuel; and fluctuations in the value and liquidity of Creative's investee companies; and the potential decrease in the trading volume and value of Creative's Ordinary Shares as a result of Creative's intended delisting from NASDAQ and termination of its US Exchange Act reporting obligations. For further information regarding the risks and uncertainties associated with Creative's business, please refer to information in its filings and reports, including those filed with or furnished to the SEC. Creative undertakes no obligation (and expressly disclaims any such obligation to) to update any forward-looking statement to conform the statement to actual results, new information, future events, changes in Creative's expectations or otherwise.