Creative Technology Signs US$175 Million Syndicated Term Loan Facility with Group of 10 International Banks

Creative Technology Signs US$175 Million Syndicated Term Loan Facility with Group of 10 International Banks SINGAPORE, Nov. 19 /PRNewswire-FirstCall/ -- Creative Technology Ltd. (NASDAQ:CREAF), a worldwide leader in digital entertainment products for PC users, today signed a five-year US$175 million Syndicated Term Loan Facility ('Facility') with ABN AMRO Bank N.V. and a group of nine other international banks. This transaction received a strong response from the banking market during syndication and was oversubscribed. As a result, the size of the Facility was increased from the initial amount of US$150 million, which was previously announced. The proceeds from this Facility are intended to be used primarily to fund an anticipated growth in working capital requirements arising from the targeted growth in revenue for the Company. "We are extremely pleased with the strong support shown by the banks within the syndicate, which has allowed us to optimize the size of this term loan facility," said Sim Wong Hoo, Chairman and CEO of Creative Technology Ltd. "With this term loan in place, it will allow us the financial flexibility to pursue the revenue growth opportunities and strengthen our position in the Personal Digital Entertainment (PDE) market, especially for MP3 players. We are targeting significant revenue growth in the MP3 segment where we have introduced our most exciting lineup of new MP3 players yet, in every segment of the market, including the MuVo(R) Micro, Zen Micro, Zen Touch and the Zen Portable Media Center." About Creative: Creative Technology Ltd. is the worldwide leader in digital entertainment products for PC users. Famous for its Sound Blaster(R) audio cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed Zen and MuVo MP3 players. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere. NOTE: The Creative logo, Sound Blaster and MuVo are registered trademarks of Creative Technology Ltd. in the U.S. and 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. Source: Creative Technology Ltd. CONTACT: Asia, Wynne Leong of Creative Technology Ltd, +65-6895-4120, or wynne.leong@ctl.creative.com; or USA, Phil O'Shaughnessy of Creative Labs, Inc., +1-408-546-6773, or poshaughnessy@creative.com Web site: http://www.creative.com/ ------- Profile: International Entertainment