Sonic Foundry and Creative Labs Deliver Audio Production Software to the Masses

Sonic Foundry, Inc. (AMEX: SFO), the leader in audio editing software on the Windows[R] platform, today announced that Creative Labs, Inc., a wholly-owned subsidiary of Creative Technology Ltd. (Nasdaq: CREAF), the world's leading provider of multimedia products and peripherals for personal computers, has selected a special version of Sonic Foundry's award-winning Sound Forge[R] audio editing software to be shipped with Sound Blaster sound cards worldwide.

Sound Blaster Live!, Creative's premier audio card, will be the first of Creative's sound cards to include Sound Forge XP. With Sound Forge XP, users can quickly and easily record, edit, and process professional-quality audio for digital video, multimedia productions, musical recordings, Web content, and computer game development.

"We are pleased to announce our agreement with Creative Labs to deliver professional-quality audio production software to the masses," said Roy Elkins, Sonic Foundry Vice President of Sales and Marketing. "The Sound Blaster product line benefits users who are looking for excellent quality, affordable hardware, and easy-to-use PC audio solutions. Sonic Foundry has established itself as the leader in the music, digital video, and computer gaming industries. The partnership between Sonic Foundry and Creative Labs will now allow the PC enthusiast to enjoy the same level of audio performance that was once only enjoyed by professional studios."

"Through Creative's agreement with Sonic Foundry, Sound Blaster Live! users will be able to take full advantage of the powerful audio technology available to them," said Hock Leow, Vice President of Creative's Multimedia Division. "Sound Blaster Live! is designed using the same technology used by Hollywood sound designers and professional musicians. Sound Forge XP is a great complement to this technology."

Sound Forge XP, the streamlined version of the award-winning Sound Forge 4.0, allows users to record, edit, and process professional-quality digital audio files. Aimed at the computer game, Web content, and digital video markets, Sound Forge XP is the preferred tool for audio production on the PC. With over 25 powerful digital audio effects, processes, and tools, users can quickly and easily produce studio-quality audio in over 20 file formats for playback on PCs, the Internet, and output back to tape or compact disc. The retail version of Sound Forge XP sells for U.S. $49 and is available from computer stores, music retailers, and catalogs worldwide.

Since its introduction in July, 1996, Sound Forge has continued to gain momentum as the leading audio editing product on the Windows platform. In addition to receiving two Editors Choice Awards from Electronic Musician magazine, two Hyper Awards from New Media magazine, and the Windows magazine Stellar award, Sound Forge was recently described by Electronic Musician magazine as "one of the most powerful programs in the desktop-music world which now totally dominates in its class."

About Creative Labs

Creative Labs-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 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 being carried out through an extensive global network of subsidiaries located in North America, Europe, Asia, and Africa.