Encoder allows DTS Interactive encoding of audio content.

Press Release Summary:

Standalone, self-powered Home Theater Connect DTS-610 connects media center or standard PC to multi-channel consumer electronics receiver. All audio from PC, including multi-channel and DRM-protected content, can be sent through sound card's analog outputs. Content is then encoded in real-time with DTS Interactive and digitally output for playback on surround-sound home theater system.

Original Press Release:

Creative and DTS Announce the Home Theater Connect DTS-610

The Only External Consumer Hardware Encoding Device that Enables Analog Transfer of Any Audio and DRM Content from the PC to the Digital Connection of a Home Entertainment Center

MILPITAS, Calif., Aug. 2 -- Creative Technology Ltd. (NASDAQ:CREAF), a worldwide leader in digital entertainment solutions for PC users and the creator of Sound Blaster(R), today announced a breakthrough in the convergence of the PC and the home entertainment center. The Home Theater Connect DTS-610, a standalone, self-powered encoder that easily connects a media center or standard PC to a multichannel consumer electronics receiver. With this simple digital connection, all audio from the PC, including multichannel and DRM-protected content, can be played back on a surround-sound home theater system. The Home Theater Connect DTS-610 will be available in September for US$99.99.

"Media center PCs are quickly becoming a necessary part of home theater systems, because of their ability to store and playback all types of content, including CDs, MP3s, DVDs, and downloaded movies. However, their limitations in handling DRM-protected content have kept media center PCs from blending seamlessly with the other components," said Steve Erickson, vice president of audio for Creative. "The Home Theater Connect DTS-610 removes these limitations and allows real-time DTS Interactive encoding of all audio content. DTS is widely regarded by audio aficionados to be the premium sound solution for home theaters, and we are excited to release the first product on the market with the new DTS Interactive encoding process."

DRM-protected content played on a PC, such as purchased MP3 files and DVD-Audio disks, require that the PC's digital audio output connector be shut off, thereby protecting the content from being copied. However, owners of the content who simply wanted to send the files to a multi-channel receiver for enjoyment on a home theater system were prevented from doing so because of this limitation. With the Home Theater Connect DTS-610, users are now able send the content through their Sound Blaster sound card's analog outputs and have it encoded in real time with DTS Interactive and digitally output to their home theater system.

The Home Theater Connect DTS-610 is the first stand-alone hardware product on the market to use the new DTS Interactive, a special real-time version of DTS encoding that offers the very best balance between performance and quality. With the Home Theater Connect DTS-610, all audio content, be it music, movies or PC games, can be encoded with the superior DTS Interactive technology.

"DTS is proud to once again announce an audio first with Creative, a long time DTS partner," said Brian Towne, senior vice president consumer/pro division at DTS. "Like DTS, Creative is known for adding exceptional consumer value and DTS is honored to bring yet another use of DTS technologies to market in partnership with such an outstanding company."

A previous solution for connecting a PC to a home theater system was to run an individual analog cable between the two for each stereo channel. In a 7.1 setup, that meant running 8 individual lines. Besides being cumbersome, that solution also tended to yield inconsistent results with regard to bass management. The Home Theater Connect DTS-610 requires only one thin cable to be run between the unit and the stereo receiver, even for multi-channel playback, with consistent playback every time.

Pricing and Availability
The Home Theater Connect DTS-610 will be available at us.creative.com/ in September, for an estimated street price of US$99.99. For more information about the Home Theater Connect DTS-610, visit www.soundblaster.com/ .

About Creative
Creative is a worldwide leader in digital entertainment products for PC users. Famous for its Sound Blaster(R) sound cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed Zen(TM) and MuVo(R) MP3 players. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high- quality digital entertainment -- anytime, anywhere.

About DTS
DTS, Inc. (NASDAQ:DTSI) is a digital technology company dedicated to delivering the ultimate entertainment experience. DTS decoders are in virtually every major brand of 5.1-channel surround processors, and there are more than 300 million DTS-licensed consumer electronics products available worldwide. A pioneer in multi-channel audio, DTS technology is in home theatre, car audio, PC and game console products, as well as DVD-Video, Surround Music and DVD-ROM software. DTS audio products are featured on more than 24,000 motion picture screens worldwide. Additionally, DTS provides imaging technology and services for the motion picture industry; Lowry Digital Images, a wholly-owned subsidiary of DTS, is an industry leader in image restoration and enhancement. Founded in 1993, DTS is headquartered in Agoura Hills, California and has offices in the United Kingdom, France, Italy, Canada, Japan and China. For further information, please visit dtsonline.com.

CONTACT: Amy Stojsavljevic of Creative Labs, Inc., +1-408-546-6737, or amys@creativelabs.com

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