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3Dlabs Refocus 3D Graphics Business on Handheld Market

Creative expects to take a one-time restructuring charge of approximately $9 million (February 24, 2006)

Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today announced that its subsidiary, 3Dlabs® Inc., Ltd. will refocus its 3D graphics business on the portable handheld device market and de-emphasize its professional workstation graphics business.

3Dlabs will transition from the shrinking professional workstation graphics market to focus on portable handheld devices which require intensive media processing for video, audio and increasingly powerful 3D graphics. This will result in a workforce reduction of approximately 100 3Dlabs employees.

As a result of the 3Dlabs refocus, Creative expects to take a one-time restructuring charge of approximately $9 million in the current fiscal quarter and a non-cash impairment charge of approximately $25 million for goodwill and intangible assets relating to 3Dlabs.


About 3Dlabs
3Dlabs, an innovator in professional visual processing, supplies a broad range of graphics accelerators to Computer Aided Design (CAD), Digital Content Creation (DCC), and visual simulation professionals. 3Dlabs is a wholly owned subsidiary of Creative Technology Ltd.

About Creative
Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment products for PC users. 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 MuVo® and Zen portable audio players. 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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Related Keywords:3Dlabs , Refocus 3D Graphics Business , Handheld Market

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