CREATIVE LABS MERGE E-MU AND ENSONIQ.

E-MU HAS ANNOUNCED that as of July 6, 1998, it has officially joined forces with Ensoniq Corporation's M.I. Division. The combined organizations will now be doing business as Emu-Ensoniq, a consolidation between two of the strongest names in the music business.

Emu-Ensoniq's approach will be to merge both E-mu's and Ensoniq's unique capabilities into one very competitive and powerful company, the ultimate objective being to offer products that leverage the unique perspectives of both E-mu and Ensoniq and to streamline operations into a single, highly effective, creative, responsive, and competitive business unit.

Dave Bristow, vice-president of marketing for Emu-Ensoniq, stated, 'By combining forces, the new company will enjoy a larger collective customer base and a broader product range. This means that we can now apply the best of our joint technologies over more products. And with our new sales and marketing efforts we can ensure that all customers, new and old, E-mu and Ensoniq, can benefit.'

Bristow said that Emu-Ensoniq looks forward to building on the strong, successful relationships that E-mu and Ensoniq enjoy with their existing customers. Because of this, Emu-Ensoniq will continue to offer audio and music products, with different features and prices, under separate brand names. In addition, Emu-Ensoniq's engineering, production, sales, and marketing teams have started sharing technologies and concepts, and the results of these creative collaborations will start to appear in the marketplace early next year.

Carl Bader, vice-president of Ensoniq Musical Products, stated, 'Our new company, Emu-Ensoniq, will be a dynamic force in the marketplace, leveraging the strengths and experience that both firms have acquired in their history as innovators in the electronic music field.'

Founded in 1972, E-mu is the leading developer of innovative digital-audio products based on digital sampling technology for the music and multimedia markets. E-mu audio products are used by professional musicians, sound designers, and audio engineers worldwide. The company is based in Scotts Valley, California, and employs about 200 people.

Founded in 1982, Ensoniq is a leading producer of audio and sound technology products. Well known in the professional music industry for its production of keyboards, synthesizers, effects processors, and digital recording systems, Ensoniq's custom IC design expertise has made the company a technology and manufacturing leader in sound solutions for OEMs. Ensoniq is located in Malvern, Pennsylvania, and employs about 200 people.

Both E-mu and Ensoniq are wholly owned subsidiaries of Creative Technology, Ltd.