Creative Technology and Lucent Technologies collaborate on new ADSL/V.90 modem

Johannesburg, 10 Jun 1999

Creative Technology Ltd., the leading provider of multimedia solutions for personal entertainment, today announced that Creative has teamed with Lucent Technologies Microelectronics Group to produce a new ADSL G.LITE/V.90 modem. Using Lucent Technologies` WildWire(TM) modem communications chip set, Creative will offer a combination ADSL and the conventional V.90 modem on a single PCI card. This will enable customers to use their existing V.90 modem connection and seamlessly switch to an ADSL connection when it becomes available to them. This dual functionality eliminates the additional cost of customers purchasing two separate modem products. Creative expects to be shipping the new ADSL G.LITE/V.90 modem in late Q3, 1999.

"Consumers benefit from this new relationship between Creative and Lucent because they can access both 56 kilobit per second and the faster DSL speeds using the same modem," said Surinder Rai, marketing director with Lucent`s Microelectronics Group: "The relationship between Creative Technology and Lucent Technologies combines world class, system-level technology coupled with brand recognition in both the retail and business market segments."

"We are pleased to be collaborating with Lucent Technologies on this project," said Sim Wong Hoo, chairman and CEO of Creative Technology. "Their combination ADSL/V.90 chip set is very innovative, enabling Creative to offer our customers outstanding performance, features and flexibility on a single PCI card. Over the last year, Creative has become a leader in the communications market with our Modem Blaster line of products, achieving a top market share in retail. Lucent`s technology is allowing us to be the first to enter the retail space and deliver cost-effective solutions for residential customers, telecommuters and small businesses."

ADSL Solutions Offer High-Bandwidth and Easy Installation

ADSL (Asynchronous Digital Subscriber Line) modems offer users many advantages over current V.90 analog modems, most significantly, the ability to send and receive digital data at ultra-high speeds over the existing telephone lines found in virtually all homes. ADSL modems (also referred to as "digital modems"), utilize a special digital coding technique which can deliver up to 26 times the bandwidth of a 56K modem. Creative`s ADSL G.LITE solution based on Lucent`s WildWire chip does not require that a phone company visit a home or office in order to install the service. With ADSL G.LITE technology users can simultaneously send or receive faxes or have a phone conversation while browsing the Internet, using only a single phone line. An ADSL G.LITE modem connection is "always-on," eliminating the need to "dial-up" an ISP each time a user wants to browse the Web. This is similar to a cable TV connection, in that the cable signal is always being transmitted, and turning on the TV accesses the data. With an ADSL G.LITE connection, a user can simply run their Internet browser application and they are instantly connected to the Internet.

The Creative ADSL/V.90 modem will allow users to experience significantly improved high-speed data communications. Data communications will include Internet access, telecommuting (remote LAN access), and specialized network access. Creative is also collaborating with Lucent to develop a digital audio/V.90 modem solution on a single PCI card.

Creative Technology

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative`s products are marketed through the OEM, systems integrator and retail channels under a variety of trademarks, including the "Blaster" family name. With the new Sound Blaster(R) PCI standard, Creative has produced a solution that utilizes a combination of hardware and software for near-perfect compatibility with existing DOS and Windows titles. Creative`s corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa.

Creative`s OEM Business Division

Creative`s OEM Business Division is dedicated to providing customized service and support for OEMs. The OEM Business Division is focused on designing solutions that target the PC, portable and embedded solutions markets. Creative recognizes that OEMs increasingly rely on brand name solutions in order to differentiate in today`s highly competitive PC market.

Creative is able to offer OEMs its strong brand name and industry standard solutions that have come to be associated with the high-quality and reliability that consumers demand. Creative`s OEM Business Division utilizes resources and advanced technology in audio, speakers, graphics and PC-DVD from its wholly-owned subsidiaries -- Digicom Systems, Inc., Emu Systems, EcTiva and Silicon Engineering, Inc. -- to produce a broad range of cost-effective solutions that provide OEMs with a competitive advantage.

Lucent Technologies

Lucent Technologies` Microelectronics Group designs and manufactures integrated circuits and optoelectronic components for the computer and communications industries. More information about Lucent`s DSL WildWire technology can be found at http://www.lucent.com/micro/WildWire. Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., visit its web site at http://www.lucent.com.

This announcement relates to product being introduced in the United States of America. The product names, contents, prices and availability may differ elsewhere in the world according to local factors and requirements.