Creative will not increase the current suggested retail prices of its personal digital entertainment products sold in Singapore with the impending increase in Goods and Service Tax (GST) that will take effect from 1 July 2007. This initiative will help provide an additional cushion to lessen the impact of the GST increase to consumers as Creative will absorb the 2% GST increase. As announced in the Singapore Budget 2007 on 15 February 2007, the GST in Singapore will be increased from 5% to 7% with effect from 1 July 2007.

Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital
entertainment products, today announced that Creative will not increase the
current suggested retail prices of its personal digital entertainment products
sold in Singapore with the impending increase in Goods and Service Tax (GST)
that will take effect from 1 July 2007. This initiative will help provide an
additional cushion to lessen the impact of the GST increase to consumers as
Creative will absorb the 2% GST increase. As announced in the Singapore Budget
2007 on 15 February 2007, the GST in Singapore will be increased from 5% to 7%
with effect from 1 July 2007.

Creatives wide range of personal digital entertainment products is available in
Singapore at The CREATIVE Stores at Marina Square, Plaza Singapura and
International Business Park, the online store at sg.store.creative.com, as well
as through authorised dealers island-wide. With this initiative, from 1 July
2007, there will be no increase in the current suggested retail prices of
Creatives products such as portable media players, MP3 players, multimedia
speakers, sound cards, webcams and headphones, as a direct result of the
impending GST increase. The absorption of the 2% GST increase by Creative will
be translated into savings to its customers when the GST hike takes effect.

We are happy to play our part for the community and help lessen the impact that
the GST increase would bring to consumers. Our customers in Singapore can look
forward to being able to enjoy Creatives personal digital entertainment products
at the same affordable prices. This initiative will help our customers to
eventually adjust to the increased GST. said Joseph Liow, Vice President of
Creative Technology Ltd and General Manager of Creative Labs Asia.