Creative Awarded U.S. Patent on its Invention of User Interface for Portable Media Players 'Zen Patent' Granted for Invention of its User Interface for Portable Media

Players Including Many of Creative's Zen and NOMAD Jukebox MP3 Players and

Found in Some Competing Players Such as the Apple iPod and iPod mini

    SCOTTS VALLEY, Calif., Aug. 30 /PRNewswire-FirstCall/ -- Creative
 Technology Ltd. (Nasdaq:   CREAF), a worldwide leader in digital entertainment
 products, today announced that it has been awarded U.S. Patent 6,928,433,
 which Creative is referring to as the "Zen(TM) Patent." The Zen Patent was
 awarded to Creative for its invention of the user interface for portable media
 players, including many of the Creative Zen and NOMAD(R) Jukebox MP3 players,
 and found in some competing players, such as the Apple iPod and iPod mini. The
 Zen Patent covers the user interface that enables users of portable media
 players to efficiently and intuitively navigate among and select tracks on the
 players. Creative applied for the Zen Patent on January 5, 2001 and it was
 awarded on August 9, 2005.
     Creative's invention for the user interface for portable media players
 enables selection of at least one track in a portable media player as a user
 sequentially navigates through a hierarchy using three or more successive
 screens on the display of the player. One example would be the sequence of
 screens that could display artists, then albums, and then tracks. When the
 user selects an artist, the player displays a list of albums for that artist.
 Selection of one of the listed albums then displays a list of tracks on the
     "The user interface covered by the Zen Patent was invented by Creative
 research and development engineers in our Advanced Technology Center in Scotts
 Valley, California," said Sim Wong Hoo, chairman and CEO of Creative. "The
 first portable media player based upon the user interface covered in our Zen
 Patent was our NOMAD Jukebox MP3 player. We shipped the NOMAD Jukebox to U.S.
 retail customers in September of 2000, and by November of 2000, it was already
 ranked as the top revenue-generating product in the U.S. in the digital audio
 player category, according to PC Data. By January of 2001, we announced that
 we had already sold 100,000 NOMAD Jukeboxes. The Apple iPod was only announced
 in October 2001, 13 months after we had been shipping the NOMAD Jukebox based
 upon the user interface covered by our Zen Patent."
     "I am very excited that we were awarded the Zen Patent, which helps to
 protect our invention and recognizes our innovation in portable media
 players," said Sim. "After a major investment of time and effort by a group of
 our research and development engineers, we developed a way for a user to
 efficiently and intuitively navigate and select tracks from a significant
 number of tracks stored on a player. Before this invention, there was no
 intuitive and efficient way to deal with the large number of tracks that could
 be stored on a high-capacity player."
     "There has been press coverage recently regarding the rejection of Apple's
 patent application, published as Pub. No. U.S. 2004/0055446 for a user
 interface in a multimedia player. This Apple patent application was filed on
 October 28, 2002. A related provisional application was filed by Apple on July
 30, 2002, eighteen months after our filing date for the Zen Patent and over
 twenty months after our NOMAD Jukebox based upon our user interface was on the
 market," added Sim.
     "We continue to innovate in digital media players with the introduction of
 the Zen Vision, which adds high-quality video playback to its MP3 music and
 digital photo viewing features. The Zen Vision, as well as the upcoming Zen
 Micro Photo with a color OLED screen and many more new products, will be based
 upon the user interface covered by the Zen Patent," noted Sim.
     The full text and images of the Zen Patent, U.S. 6,928,433 are available
 at by doing a patent number search under issued patents.
     About Creative
     Creative is a worldwide leader in digital entertainment products for PC
 users. Famous for its Sound Blaster(R) 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(R) 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. Sound Blaster, 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
     Safe Harbor for Forward-Looking Statements:
     This press release contains forward-looking statements. These
 forward-looking statements involve risks and uncertainties that could cause
 Creative's 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; exposure to excess and obsolete inventory; accelerated
 declines in the average selling prices of Creative's products; 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 consumer products as a result of poor economic
 conditions, social and political turmoil; major health concerns; the
 proliferation of sound functionality in new products from competitors at the
 application software, chip and operating system levels; the deterioration of
 global equity markets; 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,
 enforce or exploit its proprietary rights; a reduction or cancellation of
 sales orders for Creative products; Creative's ability to successfully manage
 its expanding operations; the vulnerability of certain markets to current and
 future currency fluctuations; the effects of restricted fuel availability and
 rising costs of fuel; fluctuations in the value and liquidity of Creative's
 investee companies; and the potential decrease in trading volume and value of
 Creative's Ordinary Shares as a result of the Flow Back Restriction that
 commenced on June 1, 2003 and Creative's previous plan and any future plans to
 delist from NASDAQ and to eliminate its U.S. reporting obligations. For
 further information regarding the risks and uncertainties associated with
 Creative's business, please refer to its filings with the SEC, including its
 Form 20-F for fiscal 2004 filed with the SEC. Creative undertakes no
 obligation to update any forward-looking statement to conform the statement to
 actual results or changes in Creative's expectations.

SOURCE Creative Technology Ltd.

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