Cambridge SoundWorks Sets New Performance Standard For "Home Theater in a Box" With MegaTheater Systems
New Plug-And-Play Packages Deliver the No-Compromise Sound Quality of High-End Component Surround Sound Systems

ANDOVER, MA - September 18 - The MegaTheater line is now available at Cambridge SoundWorks retail stores, through its catalog division (1-800-FOR-HIFI ) and online at its web site http://www.cambridgesoundworks.com. Cambridge SoundWorks is a wholly owned subsidiary of Creative Technology Ltd (Nasdaq: CREAF).

The MegaTheater line includes the MegaTheater 505, a high-performance "home-theater-in-a-box" system, as well as three other complete home theater packages with DVD player - the 510, 520 and 530. Each ready-to-go MegaTheater system uses the same sleek, platinum-tone DVD/tuner console with AM/FM tuner, DVD/CD/CDROM-MP3 player and multiple inputs. Moreover, each system uses the same high-performance 8" long-throw subwoofer with 150-watt amplifier, capable of accurate bass response down to 35Hz. The four systems vary in that they use different grades of main, center and surround speakers.

"More and more consumers have learned to appreciate the convenience and space-saving benefits of all-in-one home theater packages, but many simply aren't willing to settle for compromised sound quality," said Michael Sullivan, president of Cambridge SoundWorks. "Our MegaTheater line delivers the simplicity and compact size of all-in-one systems, while also providing a level of flexibility and performance normally found in larger, high-priced, more complicated component systems. MegaTheater is truly a home-theater-in-a-box that steps out of the box."

The cornerstone of the MegaTheater line is the new, versatile Cambridge SoundWorks' DVD/tuner console, MegaTheater AVS500. Unlike most other all-in-one home theater consoles, the AVS500 doesn't rely on compact, low-power amplifier modules that limit output and prevent the use of better-quality speakers. Instead, the console delivers signals to a powerful 450-watt B.A.S.H. digital hybrid amplifier located in the system's subwoofer. This allows for a sleek, compact control console without limiting the system's performance. The AVS500 contains functionality for CD, VCD, DVD, CDRW, and MP3 playback, as well as a digital AM/FM stereo tuner. Dolby® Digital, DTS, and Dolby Pro Logic® Surround sound modes are featured. The AVS500 features high performance functionality, including progressive scan component video outputs, and proprietary 3:2 pulldown technology that offers superior, crisp flicker free images from high-definition TV sets.

Two additional inputs are provided for connection of auxiliary AV sources such as a VCR, Cable Box, or satellite dish. Optical and coaxial digital inputs are provided to feed AC3 bitstream from a Digital Cable box or Satellite receiver through the Dolby Digital surround decoder. The AVS500 has 5.1 preamp level outputs, along with both optical and coaxial digital outputs usable for connection to an outboard processor/receiver or audio recording on DAT or Minidisc. All functions are controlled from the included I.R. remote control.

MegaTheater Packages
For consumers looking for a high performance "home-theater-in-a-box" system, the MegaTheater 505 starts out the line ($699.99). The MegaTheater 505 matches the Cambridge SoundWorks' AVS500 DVD/tuner console with five Newton Series MC50 satellite speakers with 3.5" drivers using Neodymium magnets, in stylish cabinets designed to reduce standing waves. Completing the system is the new BassCube™ 851 subwoofer, a high performance 8" long-throw subwoofer with accurate bass down to 35Hz.

MegaTheater 510 ($849.99) delivers all the features and performance of MegaTheater 505, but upgrades the main and surround speakers to the two-way Newton Series MC100s, which use 3.5" composite midrange drivers and ¾" silk-fabric dome tweeters. The center speaker is upgraded to the Newton Series MC150 "MTM" (Midrange-Tweeter-Midrange) design speaker for smooth, wide-dispersion sound. The package includes the AVS500 DVD/tuner console, as well as the BassCube 851 subwoofer.

The MegaTheater 520 ($1,099.99) uses the same DVD/tuner console, B.A.S.H. amplifier and subwoofer as other MegaTheater systems, but upgrades the main, center and surround speakers to upper level Newton Series models. The Newton Series MC300 center speaker uses dual 4" midrange drivers and a 1" silk-fabric dome tweeter. The Newton Series MC200 main speakers use single 4" midrange drivers and a 1" silk-fabric dome tweeter. The Newton Series S200 surround speakers offer the user the choice of dipole (diffused sound) or bipole (focussed sound) operation, for outstanding rear-channel effects.

Completing the line is the MegaTheater 530 ($1,299.99), a high performance system equal to exotic, ultra-high-priced systems using large, complex components. MegaTheater 530 uses the same main, center and surround speakers as the highly acclaimed Newton Theater MC300 speaker system. Newton Series MC300s are used for main and center channels. The top-of the line Newton Series S300s - with dipole, bipole and monopole settings - are used for the surround channels. The system is completed with the DVD/tuner console and BassCube 851 subwoofer.

Pricing and Availability
The Cambridge SoundWorks MegaTheater line is available directly at Cambridge SoundWorks' retail locations, on the Internet at www.cambridgesoundworks.com, or by calling 1-800-FOR-HIFI . Availability: September 2002

MegaTheater 505: US $699.99
MegaTheater 510: US $849.99
MegaTheater 520: US $1,099.99
MegaTheater 530: US $1,299.99

About Cambridge SoundWorks
Cambridge SoundWorks, Inc. manufactures over 60 different models of home stereo, home theater, multimedia speakers and assorted electronics products. It is the country's largest factory-direct stereo and home theater manufacturer, selling its award-winning stereo speaker products and sound systems, as well as other brands of high-performance audio and video products via its multiple channels. This includes its retail store locations, online via its Internet-arm www.cambridgesoundworks.com, and via its catalog and Call Center operation at 800-FOR-HIFI . Information on Cambridge SoundWorks' products is also available at www.cambridgesoundworks.com.

About Creative
Creative (Nasdaq: CREAF) is the worldwide leader in digital entertainment products for users of the personal computer and the Internet. Famous for its Sound Blaster® sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed NOMAD Jukebox. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.

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This announcement relates to products launched in the United States of America. The product names, contents, prices and availability are subject to change and may differ elsewhere in the world according to local factors and requirements.

Cambridge SoundWorks, Newton Series and MegaTheater are trademarks or registered trademarks of Cambridge SoundWorks, Inc. in the United States and/or other countries. All other brand names and products mentioned herein are either registered trademarks or trademarks of their respective owners and are hereby recognized as such.

CONTACT INFORMATION:
Maria Cataldo Cambridge SoundWorks 978-623-4400 x272 mcataldo@cambridgesoundworks.com