Creative Signs Agreement To Acquire Reveal Computer Products, Inc.

Acquisition Broadens Creative's Customer Base; Enables Company to Initiate
Dual-Brand Retail Marketing Strategy

SINGAPORE - OCT. 25, 1995 - Creative Technology Ltd. (Nasdaq:CREAF)
announced today that it has signed an agreement to acquire Reveal Computer
Products, Inc., a supplier of a wide range of multimedia solutions and
peripherals for personal computers. Reveal's family of products includes
memory upgrades, graphics accelerators, high- end video editing boards,
telephony products and mass storage devices along with multimedia upgrade
kits and sounds cards.

Reveal, a privately-held company based in Woodland Hills, CA will receive
up to US$65 million in newly issued shares of Creative common stock and 2
million warrants.

Under terms of the agreement, Reveal will become a wholly-owned subsidiary
of Creative Technology, and will continue marketing its products and
technologies under the Reveal brand name through its broad network of
computer retailers and mass merchants. Jason Barzilay, president and
chairman of Reveal, will serve on the board of the new Creative subsidiary
as its vice chairman.

"This acquisition couples Creative's worldwide strength in the retail and
distribution channels with Reveal's broad multi-media peripheral product
offerings. It also allows us to complement our premium brand of Blaster
products with Reveal's value brand," Mr. Sim said. "We can now meet the
requirements of a much broader market of consumers through a product
offering that spans all their upgrade needs, from entry level to the most
advanced multimedia solution. This marks a new beginning for brand
marketing of consumer PC technology."

The three founding shareholders of Reveal are widely respected as pioneers
in the consumer PC market. They are also major shareholders and prominent
members of the board of directors of Packard Bell, the world's leading
supplier of personal computers for the home market. Along with Mr.
Barzilay, these are Beny Alegem president and chief executive officer and
chairman of Packard Bell and Alex Sandel, president of Cal-Circuit Abco
II, Inc. who serves on the board of both Reveal and Packard Bell.

"We are particularly excited that Creative is gaining three major
shareholders with such tremendous experience and demonstrable success in
the PC industry," Mr. Sim, Chairman and CEO of Creative Technology Ltd.
said. "We look forward to a mutually productive relationship with them
going forward."

Noting his company's enthusiasm, Mr. Barzilay said, " There are tremendous
synergies between these two companies and one of my primary focuses will
be to quickly capitalize on them. I already see many opportunities to
bring new technologies to Creative, and just as many opportunities in the
market for Creative's products and technologies."

Creative Technology Ltd. develops, manufactures and markets a family of
sound, video software and telephony multimedia products for PCs under the
Blaster family name, and the ShareVision line of desktop video
conferencing products for Macintoshes and PCs. The company's Sound Blaster
sound platform enables PCs to produce high-quality audio for
entertainment, educational, music and productivity applications, and has
been accepted as the industry standard sound platform for PC-based
software.

Creative Technology Ltd. was incorporated in 1983 and is based in
Singapore. Creative Technology's U.S. subsidiaries include Creative Labs,
Inc., E-mu Systems, Inc., Digicom Systems, Inc. and ShareVision
Technology, Inc. Creative also has other subsidiaries in Australia, China,
Europe, Japan, Malaysia, Singapore, South Korea and Taiwan. The company's
stock is traded on Nasdaq under the symbol CREAF and on the Stock Exchange
of Singapore.
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Creative Board of Directors Announcement of Aquisition

The Board of Directors of Creative Technology Ltd (the "Company") is
pleased to announce that the Company has on October 25, 1995 in the United
States, signed an Agreement and Plan of Reorganization to acquire the
whole of the issued share capital of Reveal Computer Products, Inc.
("Reveal"), a corporation incorporated in the State of California, USA
(the "Acquisition"). The Acquisition will be in the form of a merger of
Reveal into a wholly- owned subsidiary of the Company, in accordance with
the laws of the State of California.

Reveal, a privately held company based in Woodland Hills, California, USA,
markets a broad range of personal computer peripheral equipment, including
sound cards, multi-media upgrade kits, graphic accelerators, high-end
video editing boards, telephony products and mass storage devices. The
Company plans to continue to sell such products under the Reveal brandname
as a lower cost line, sold primarily through Reveal's traditional channel,
which has been direct sales to mass merchants.

The consideration for the Acquisition is up to US$65 million (S$92 million)
to be satisfied by the issue to the holders of Reveal's preferred and
common stock of new ordinary shares of S$0.25 each in the capital of the
Company, credited as fully paid ("New Shares") plus an additional
consideration of a total of 2,000, 000 warrants, each giving the holder
thereof the right to convert into one share of S$0.25, in the capital of
the Company ("Warrants"). The consideration was arrived at on a willing
buyer willing seller basis.

The price attributable to the New Shares will be pegged to the average of
the last reported closing price of the Company's ordinary shares as quoted
on the Nasdaq National Market for the five trading days immediately
preceding the closing date for the Acquisition, subject to the maximum of
US$16.28 and the minimum of US$6.98 (the "Average Closing Price"). The
Warrants will be exercisable within five years at four different exercise
prices the lowest of which is 25% above the Average Closing Price.

By way of illustration, if based on the average of the last reported
closing price of the Company's ordinary shares quoted on the Nasdaq
National Market for the five trading days immediately preceding the
closing date for the Acquisition is US$13 and if the final stock
consideration is US$65 million, 5 million New Shares will be issued at
US$13 per share. On the same basis 2,000,000 Warrants will be issued at
exercise prices ranging from US$16.25 to US$31.25.

The completion of the Acquisition is subject to various conditions,
including, among others, approval of the shareholders of the Company in
general meeting, the approval of the Stock Exchange of Singapore Limited
for the listing and quotation of the New Shares and Warrants and the
receipt of all U.S. and Singapore regulatory approvals.

The exact financial effects of the Acquisition, including the effects of
earnings per share and net tangible assets, cannot be determined until the
final consideration and asset values have been ascertained.

This Acquisition allows the Company to expand product offerings to the
personal computer market through additional technologies, multiple brands,
and increased efficiencies.

None of the Directors or substantial shareholders of the Company has any
interest, direct or indirect, in the Acquisition.

BY ORDER OF THE BOARD

Yeo Choon Tat
Company Secretary
26 October 1995
Singapore
 
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