Creative deal will enhance Rectron`s earnings 7 March 2000

Issued by Meropa Communications for Rectron Holdings
Johannesburg, 09 Mar 2000

Creative Labs, the world`s leading provider of multimedia products, has chosen JSE-listed Rectron Holdings as a distribution partner in South Africa.

Singapore-based Creative Labs has earned global leadership status for its products in PC-Audio, Speakers, CD-ROM, PC-DVD, graphics, video and communications. It is a pioneer in the multimedia industry and consistently sets new standards for the industry to follow.

The company listed on the US stock exchange in 1992, making it the first Singapore-based company to be listed on the US Nasdaq stock exchange. The company opened its South African office in 1997.

Says Nir Grodzian, general manager of Creative Labs Africa, "We have chosen Rectron as a distribution partner because it is particularly focussed, and has been highly successful in servicing the dealer/reseller market in South Africa - an area in which Creative wants to expand.

"Rectron`s active channel programs and marketing activities will greatly complement and enhance our own existing marketing campaigns, and help us to grow our market share in South Africa."

"Partnering with such a prestigious company such as Creative," says Mark Lu, chief executive officer Rectron Holdings, "brings another world-class brand into Rectron`s stable. We are confident that the deal will enhance our earnings."

Rectron

Rectron was founded in 1995. The company rapidly grew into one of the country`s leading distributors of computer-related components, peripherals and accessories. Rectron was listed on the Information Technology sector of the Johannesburg Stock Exchange on 11 November 1998.

Rectron has branches in Midrand, Cape Town and Durban and have recently opened international branches in Holland, Melbourne and Manchester.

Rectron continues to identify and secure exclusive distribution rights for high profile products for distribution. Leading brands include Creative, Gigabyte, Viewsonic, Fujitsu, Gigatech, Cyberdrive, AMD, CTX, Microtek, Ricoh and Acer Peripherals. These products are distributed through an established national dealer network. This has enabled Rectron to attain substantial local market share in especially the CD-ROM, motherboard, monitor, graphic card and hard disk storage markets.