24 Times More Powerful than its Predecessor, the Creative X-Fi Xtreme Fidelity Audio Processor Provides the Extreme Power to Run New Applications that Enhance MP3s to Sound Even Better than they do on their Original CD, and Accelerate PC Game Play

London; – 13th May, 2005– Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital entertainment solutions for PC users and the creator of Sound Blaster®, today announced two major breakthroughs in audio technology: Xtreme Fidelity, the new standard in audio, and the Creative X-Fi Xtreme Fidelity audio processor. The combination of Xtreme Fidelity and the Creative X-Fi Xtreme Fidelity audio processor provides dramatic improvements to the recording and playback of MP3 music, accelerates and improves PC game play, enhances listening experiences for movies, and improves the capabilities, performance and quality of audio creation.

Xtreme Fidelity
Xtreme Fidelity sets a new standard for audio by supporting a combination of 24-bit quality, stunning audio clarity with a minimum of 110db SNR and the new CMSS® (Creative Multi Speaker Surround) 3D headphone and surround speaker technology. Consumers will be able to upgrade their existing CD and MP3 music to the Xtreme Fidelity standard, using applications that can run on the Creative X-Fi Xtreme Fidelity audio processor. Being able to upgrade an existing library of music to Xtreme Fidelity differentiates it from other high-end music standards such as DVD-A and SACD, which offer limited selection and require consumers to repurchase their music in that specific format. When consumers upgrade their CD or MP3 music to the new Xtreme Fidelity standard, they will be able to experience playback that sounds better than its original CD recording.

The Creative X-Fi Xtreme Fidelity Audio Processor
The Creative X-Fi Xtreme Fidelity audio processor has more than 51 million transistors, and is capable of 10,000+ MIPS. The Creative X-Fi Xtreme Fidelity audio processor is 24 times more powerful than its predecessor, and is designed with multiple engines, so it can dynamically direct resources through a modular architecture to completely change the way audio is managed for any application. The Creative X-Fi Xtreme Fidelity audio processor provides key modes that are optimized for experiences with MP3 music, gaming, movies and audio creation. Each mode is configured to dynamically dedicate the processor’s power to deliver only the features, quality and capabilities that the user requires.

CD and MP3 Music
All CD music is in 16-bit resolution, which is typically compressed from an original 24-bit studio recording. When converting CD music to MP3 format, the music is compressed yet again. These types of compression result in a compromise of audio quality and clarity. The Creative X-Fi Xtreme Fidelity audio processor drives new applications that can enhance MP3s by bringing them back to 24-bit quality, and allows the user to upgrade the music to multi-channel surround sound. This enhancement enables virtually all MP3 music to sound even better than it did on the original CDs.

PC Gaming
Game developers and PC gamers want their games to run at the fastest frame rate. This has at times caused them to compromise audio quality and realism by reducing the number of simultaneous effects or turning off audio altogether, because the audio requires so much processing power that it slows the frame rate. This significantly reduces the quality of the gaming experience and can put gamers at a competitive disadvantage. With the power and performance of the Creative X-Fi Xtreme Fidelity audio processor, gamers will actually be able to experience accelerated frame rates during game play with all the effects turned on. In addition, game developers will now be able to make their audio environments in games even more realistic as they can build to the powerful new platform of Xtreme Fidelity.

The Xtreme Fidelity standard provides a new extension of the EAX® Environmental Audio standard that was invented by Creative and is found in virtually all top PC game titles used today. With the new Xtreme Fidelity platform, Creative will deliver the fifth generation of EAX, which will immediately support hundreds of top games that are already available.

DVD and Downloaded Movies
Many people who watch DVDs or downloaded movies on their PCs want to use headphones so they can listen at whatever volume they want without bothering others. Although this keeps the volume from disturbing others, the headphones do not deliver the compelling surround sound experience available with a multi-channel speaker system. With the processing power and performance of the Creative X-Fi Xtreme Fidelity audio processor, listeners will be able to enjoy the Creative Multi Speaker Surround 3D headphone technology, which provides the experience of a multi-channel speaker system through virtually any headphones.

Enhanced Audio Creation
The Creative X-Fi Xtreme Fidelity audio processor is designed to deliver pristine audio recording quality, with advanced features and effects for music and audio creation. The Creative X-Fi Xtreme Fidelity audio processor features an SRC engine that is so precise that any audio resolution is converted to any other resolution at near transparency with 136db THD+N and digital-matched recordings in resolutions from 44.1kHz to 96kHz. The Creative X-Fi Xtreme Fidelity audio processor also supports ASIO recording with latency as low as one millisecond with zero CPU load. The Creative X-Fi Xtreme Fidelity audio processor delivers so much power, performance, quality and capability that it will be also used by E-MU Systems, the Creative Professional audio business, for future desktop authoring solutions designed for professional musicians.

Experience Creative X-Fi Xtreme Fidelity Audio Processor Applications at e3
Creative will be providing a sneak preview of the new applications made possible by the Creative X-Fi Xtreme Fidelity audio processor at e3 2005 in Los Angeles, from May 18-20. To view the demonstrations, or to get more information about the Creative X-Fi Xtreme Fidelity audio processor and Xtreme Fidelity, visit booth 2228 in the West Hall during show hours.