Creative Introduces Xdock Wireless - an iPod Wireless X-Fi Music Distribution System

Plays Music from your iPod via X-Fi Wireless Receivers throughout Your Home

SINGAPORE - January 9, 2007 - Creative (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today introduced the Creative Xdock Wireless, which docks an iPod and plays music in Xtreme Fidelity - music beyond CD quality - via Creative X-Fi Wireless Receivers in any room in the home. The Creative Xdock Wireless also connects directly to a powered speaker system or home theater system to play video, photos and music in DTS surround-sound. The Creative Xdock Wireless is designed to work seamlessly with the iPod and has been certified by Apple under the Made for iPod programme.

“We’re thrilled that Creative is joining the iPod ecosystem with the launch of the Creative Xdock Wireless,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “Just place your iPod in the Xdock and easily play music wirelessly in any room with the great sound quality of Xtreme Fidelity.”

“We designed the Creative Xdock Wireless so an iPod can easily become the audio platform for your entire home,” said Sim Wong Hoo, chairman and CEO of Creative. “Your iPod goes in the Creative Xdock Wireless to play music through Creative X-Fi Wireless Receivers in as many rooms as you want - all upconverted to Xtreme Fidelity.”

Creative’s award-winning X-Fi Xtreme Fidelity is produced with X-Fi Crystalizer and X-Fi CMSS-3D technology. The X-Fi Crystalizer makes MP3s sound better than CDs by analyzing and identifying which parts of the audio stream have been truncated or damaged during compression. It then intelligently and selectively restores the highs and lows from instruments and vocals that are damaged during the compression of MP3s. X-Fi CMSS-3D creates virtual surround sound through speakers or headphones. It expands audio for superior headphone listening so music completely surrounds the listener.

The Creative Xdock Wireless provides many key features:

* It plays music through multiple Creative X-Fi Wireless Receivers, which are sold separately, in different rooms of the home connected to powered speakers or a home theater system.
* It plays music in Xtreme Fidelity - music beyond CD quality.
* A line-out for connection to powered speakers, which also functions as an optical-out to your home theater for DTS surround-sound.
* S-video and composite video-out connections, so digital photos and videos stored on an iPod can be displayed on a TV screen.
* A wireless remote to navigate the iPod menu, adjust volume levels, and activate X-Fi Crystalizer and X-Fi CMSS-3D.
* It docks and charges an iPod and includes line-in for connection of other audio devices.

The Creative Xdock Wireless plays music up to 100 feet away without requiring a wireless network, via Creative X-Fi Wireless Receivers; it’s just as quick and easy to set up as a cordless phone. There are 2 different modes for music playback: broadcast and individual zones. The broadcast and zone modes allow the user to have complete control of whether music is played through every Creative X-Fi Wireless Receiver in the home, or specific Creative X-Fi Wireless Receivers. In broadcast mode, multiple Creative X-Fi Wireless Receivers can receive music in different rooms of the home. In zone mode, a user can turn on or off up to 4 different Creative X-Fi Wireless Receivers independently, to listen to music only in desired rooms. Each Creative X-Fi Wireless Receiver can be controlled with its own remote, to activate X-Fi Crystalizer and X-Fi CMSS-3D, adjust volume, and control music playback.

Pricing and Availability
The Creative Xdock Wireless, part of the Made for iPod programme and designed specifically for use with the iPod with video, iPod photo, iPod mini and iPod Nano, will be available for S$299.00. The Creative X-Fi Wireless Receiver will be available for S$149.00. Both products will be available in March 2007.

About Creative
Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment products. 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™ 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.

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This announcement relates to products launched in Asia Pacific. Availability is subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Xdock Wireless, X-Fi Xtreme Fidelity, X-Fi, X-Fi Crystalizer, X-Fi CMSS-3D and Sound Blaster are trademarks or registered trademarks of Creative Technology Ltd. in the United States and/or other countries. All other brand or product names are trademarks of their respective owners.

Contact Information

Phil O’Shaughnessy

America Contact

Creative Technology Ltd.

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