Disposal of Creative Technology (Qingdao) Ltd

Online, August 10, 2010 (Newswire.com) - We refer to the announcements released on 5 May 2010 and 2 July 2010 by Creative Technology Ltd ("Creative") relating to the disposal of an 80.1% equity interest in Creative Technology (Qingdao) Ltd, a wholly-owned subsidiary in China.

The purchaser has not fulfilled certain payment conditions stipulated in the sale and purchase agreement and consequently Creative will not be proceeding with this transaction. The non-completion of this transaction is not expected to have any
material impact on the financial position of the Creative group for the current financial year.

Creative will continue to consider opportunities to divest the Qingdao manufacturing facility, which is in line with the strategic direction that Creative has undertaken to dispose of its manufacturing facilities.

Ng Keh Long
Company Secretary
6 August