Microsoft Announces Creative Technology to Develop Media2Go Portable Media Player

At CeBIT 2003 today, Microsoft Corp. announced that Creative Technology Ltd., the leading provider of hard disk drive audio players, will develop a portable media player based on Microsoft's upcoming media player device platform code-named "Media2Go." The new devices are expected to be in stores in late 2003 and will extend Creative Technology's line of highly acclaimed digital entertainment products such as the award-winning NOMAD(R) line of MP3 players.

"The 'Media2Go' product concept has struck a chord with consumers because it allows them to enjoy their digital music, photos and video in a way that no single device has been able to offer so far," said Todd Warren, general manager of the Embedded Appliance and Product Group at Microsoft. "Creative Technology has a track record of developing groundbreaking PC companion devices, and we are excited to be joining with them to bring a 'Media2Go'-based personal media player to market."

"As a leader in portable audio devices today, Creative is always looking at ways to enhance our customers' experiences," said Sim Wong Hoo, chairman and CEO of Creative Technology. "'Media2Go' allows us to deliver a single portable media player that provides a complete digital media experience on the go and that provides our customers with new and exciting ways to enjoy their digital content anytime, anywhere."

Creative Technology's family of "Media2Go"-based portable media players will offer consumers a sleek, lightweight design with Storage capability for more than 8,000 music files, 175 hours of digital quality video or up to 30,000 photographs. The players will provide continuous playback of video for up to six hours and continuous music playback for up to 12 hours.

"Media2Go": The Complete Way to Enjoy Videos, Music and Pictures on the Go

Today's consumers require a variety of portable devices to experience all their digital content while on the go. With a single "Media2Go" device, consumers can enjoy their digital music, video and photos any time and any place. "Media2Go" combines the playback and management functionality of an MP3 jukebox and the viewing capabilities of a portable DVD player. It also provides users with the ability to view authorized content from a personal video recorder as well as the capability to share digital photos. "Media2Go" devices enable consumers to watch and listen to their digital media content wherever and whenever they want. Some examples include the following:

• Watching a favorite movie on a long flight
• Playing back favorite prerecorded TV shows while busing in to work
• Entertaining the kids in the back seat of the car with their favorite cartoons
• Listening to favorite songs or watching music videos while working out in the gym
• Showing off the latest pictures or home movies of children to grandparents and friends

The first "Media2Go" hardware reference design is available today and is based on Intel XScale-based processors.

More information about Media2Go can be found at http://www.microsoft.com/windows/embedded/pmp/.

About Creative Technology

Creative Technology 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 NOMAD Jukebox MP3 player. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.