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Technology Stocks : Creative Labs (CREAF) A New Hope - -- Ignore unavailable to you. Want to Upgrade?

To: Hitch who wrote (63)	5/23/1998 2:54:00 PM
From: Hitch	Respond to of 76

Creative Acquires Silicon Engineering SINGAPORE - May 23, 1998 - Creative Technology Ltd. (Nasdaq: CREAF), the world's leading provider of multimedia technology for the personal computer, today announced that, on May 22, 1998, it acquired Silicon Engineering, Inc. of Scotts Valley, California, a key innovator in the design and development of integrated circuits for the multimedia, storage and communications markets. "This strategic acquisition will enable Creative to further differentiate its products through a broad range of proprietary integrated circuit designs and to push the envelope of deep sub-micron technology," said Sim Wong Hoo, chairman and chief executive officer of Creative. "Silicon Engineering's key strengths are in developing integrated circuits that provide the ability to combine analog and digital functions and offer increased performance with low power consumption. Silicon Engineering enhances our arsenal of cutting-edge technologies thereby allowing us to continue to drive the advanced multimedia marketplace." "We are extremely pleased to be joining forces with Creative," said Rich Hansen, president and co-founder of Silicon Engineering. "This merger enhances Creative's position in the multimedia market and increases its ability to deliver its technology to the marketplace." In acquiring privately-held Silicon Engineering, Creative has issued 921,271 of its ordinary shares, credited as fully paid, to the holders of the Silicon Engineering shares in exchange for all the shares of Silicon Engineering. Up to an additional 102,314 shares of Creative's ordinary shares may be issued to the holders of Silicon Engineering upon expiration of an escrow period. The consideration of approximately US$22.5 million (or approximately US$4.94 for each Silicon Engineering share) and the issue price of US$22 for each Creative share have been determined on an arms' length basis. The new Creative shares constitute approximately one percent of the enlarged issued share capital of Creative. Creative expects to account for this acquisition under the pooling of interest accounting rules. Creative currently contemplates that Silicon Engineering will continue its business at its Scotts Valley location as a California corporation and a wholly-owned subsidiary of Creative. The acquisition is not expected to have a material impact, for the current year, on Creative's earnings per share or on Creative Group's net tangible assets. None of the Directors or substantial shareholders of Creative has any interest, direct or indirect, in the acquisition. 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 both the OEM and retail channels under a variety of trademarks, including the "Blaster" family name. Sound Blasterr has become the multimedia industry's de facto audio standard. Sound Blaster is an audio platform consisting of a sound card or chipset, software drivers and bundled software applications that enable PCs to produce high quality audio. Creative's corporate headquarters and primary manufacturing facilities 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. CONTACT INFORMATION: Creative Technology Ltd Mary Rachel Yee Tel (65) 895 4775 mary@ctlsg.creaf.com