This seems to be an industry first. Traditionally the host based audio CODEC or controller manufacturers have licensed algorithms from vendors of discrete solutions or software houses, Eg, EAX from Creative, A3D from Aureal, Sensaura from Sensaura and Dolby Digital from Dolby Labs.

In this case, Creative will provide a software based feature rich upgrade for systems which feature Analog Devices host based audio. While it is impossible to upgrade the hardware audio CODEC, this new software upgrade can provide end users with a better audio experience, both quality and feature wise.

Exact features were unavalible at time of writing.

CREATIVE AND ANALOG DEVICES ANNOUNCE AGREEMENT TO ENABLE CREATIVE TO EASILY UPGRADE THE PC FROM HOST AUDIO TO SOUND BLASTER QUALITY

Sound Blaster Integrated Audio Upgrade Delivers Rich Features, Simple End-User Experience.

SYDNEY July 26, 2004 - Creative Labs Pty Ltd, a local subsidiary of Creative Technology Ltd (NASDAQ: CREAF) the creator of Sound Blaster® which is the worldwide standard for high quality PC audio and leader in digital entertainment solutions, today announced an agreement with Analog Devices Inc. (NYSE: ADI) that allows Creative to provide PC users with a simple upgrade from host audio to Sound Blaster audio quality.

Under the agreement, Creative will market a Sound Blaster-enhanced audio upgrade to Analog Devices' integrated audio. This will allow end users to enjoy the Sound Blaster experience on products from many PC OEMs and motherboard manufacturers who use audio chips from market leader, Analog Devices. This experience includes state-of-the-art audio such as voice-enabled applications, enhanced music experiences, home theater-quality DVD movies, and next-generation game audio.

In addition to providing an upgrade to Analog Devices' large customer base, Creative will market a complete family of audio accessories directly to end users. The Creative upgrade solutions and accessories are slated for availability worldwide at the end of 2004.

"We are excited to provide Analog Devices' huge customer base with an easy, low-cost upgrade path to Sound Blaster audio quality," said Steve Erickson, vice president of the audio group for Creative. "For the first time in history, users of motherboard audio can enjoy the great audio quality and feature rich enhancements of the Sound Blaster brand by purchasing an easy and simple to install upgrade."

"As the market share leader in PC motherboard audio, we're thrilled to enable Creative's leadership products, technology and brand in mass-market motherboard configurations," said John Croteau, general manager, Media Platforms and Services Group, Analog Devices, Inc. "This is an important expansion for integrated audio features since the up-sell model for upgrades and accessories today drives the retail and direct-order PC channels with the profit opportunities often exceeding those of the PC itself."

ADI in PC Audio

Analog Devices today holds more than 50 percent market share in motherboard audio subsystems. The company's high-performance audio codecs ship in major brand motherboards and PCs from manufacturers including ASUS, Dell, Fujitsu-Siemens, HP, IBM, Intel, NEC Sony, and Toshiba.

For more information about please visit our website at www.australia.creative.com

About Creative Labs Pty Ltd

Creative Labs Pty Ltd started operating in Australia back in February 2000 and is a wholly owned subsidiary of Creative Technology Ltd. Just recently, Creative Labs expanded its operation to a new showroom and office situated on busy Parramatta Road in Sydney. The new address is Shop 3-5, 524 Parramatta Rd, Petersham NSW. Telephone: (02) 9021 9800.

About Creative

Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment products for PC users. 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 MuVo® 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.

About Analog Devices, Inc.

Analog Devices, Inc. is a leading manufacturer of precision high-performance integrated circuits used in analog and digital signal processing applications. ADI is headquartered in Norwood, Massachusetts, and employs approximately 8,700 people worldwide. It has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, and the Philippines. Analog Devices' common stock is listed on the New York Stock Exchange and ADI is included in the S&P 500 Index.