Creative today announced an innovative partnership with California Fitness to
bring X-Fi quality music to all fitness enthusiasts during their workouts at
California Fitness Clubs in Singapore. From March 2007, the Creative Xmod will
be installed in all 4 California Fitness Clubs located at Orchard Road, Raffles
Place, Bugis Junction and Novena Square.

As part of the Creative-California Fitness partnership, California Fitness
members are entitled to 15% off any X-Fi product from 1 – 31 March 2007. They
will simply have to present their California Fitness membership pass at The
CREATIVE Stores in Marina Square, Plaza Singapura and International Business
Park to be eligible for the discount.

In addition, California Fitness members are entitled to the following Special
Buys: Creative GigaWorks T20 Speaker System at a special price of S$ 139.00 (U.P.
S$ 179.00) or Creative ZEN Aurvana In-Ear Earphones at S$ 99.00 (U.P. S$ 169.00)
with every purchase of a X-Fi product (limited to one special buy per X-Fi
product purchase).

Creative (NASDAQ: CREAF), a worldwide leader in digital entertainment
products today announced an innovative partnership with California Fitness to
bring X-Fi quality music to all fitness enthusiasts during their workouts at
California Fitness Clubs in Singapore. From March 2007, the Creative Xmod will
be installed in all 4 California Fitness Clubs located at Orchard Road, Raffles
Place, Bugis Junction and Novena Square.

Based on the award-winning X-Fi Xtreme Fidelity audio technology, the Creative
Xmod will dramatically improve the overall music listening experience of
California Fitness Club members, thereby allowing them to enjoy a more enriching
fitness workout session.

The Creative Xmod features X-Fi Crystalizer and X-Fi CMSS-3D, two key
audio-enhancing features that make your music way better. X-Fi Crystalizer
upconverts MP3 music by intelligently and selectively restoring the highs and
lows such as the snare drums, basses, cymbals crashes and guitar plucking that
had been damaged during the compression of MP3s. XFi CMSS-3D expands audio for
superior headphone listening so that the music completely surrounds the listener
like a multi-channel speaker system instead of sounding like it is stuck between
the headphones.

California Fitness members will now be able to experience the incredible X-Fi
technology while working out in its dance studios and spinning rooms. Selected
treadmills will also be installed with the Creative Xmod where users simply need
to connect their MP3 players and earphones to the device and their music will be
instantly improved to Xtreme Fidelity standard.

“We always look for innovation that can enhance our members’ experience. For
example, music is an important part of exercising, especially during high-energy
workouts. It controls the rhythm, intensity and “feel” of your workout sessions.
We are delighted to deploy Creative Technology’s X-Fi system in our clubs and
bring our members a richer music experience.” said Rod Bennar, Vice President of
Singapore & Malaysia of California Fitness.

“Over 100 million people in the world today listen to MP3 music, be it in the
gym, while commuting or at home. The Creative Xmod presents fitness enthusiasts
a simple solution to restore the quality of their MP3 workout mixes. This
candy-bar sized device is so easy to use – no installation required, and works
with most MP3 players or other audio devices.” said Melvin Seah, Marketing
Manager, Creative Labs Asia.

Promotion
As part of the Creative-California Fitness partnership, California Fitness
members are entitled to 15% off any X-Fi product from 1 – 31 March 2007. They
will simply have to present their California Fitness membership pass at The
CREATIVE Stores in Marina Square, Plaza Singapura and International Business
Park to be eligible for the discount. In addition, California Fitness members
are entitled to the following Special Buys: Creative GigaWorks T20 Speaker
System at a special price of S$ 139.00 (U.P. S$ 179.00) or Creative ZEN Aurvana
In-Ear Earphones at S$ 99.00 (U.P. S$ 169.00) with every purchase of a X-Fi
product (limited to one special buy per X-Fi product purchase). Other terms and
conditions apply.