Creative Technologies announces year end results.

BROOKLYN, N.Y.--(BUSINESS WIRE)--April 3, 1996--Creative Technologies Corp. (NASDAQ - CRTV) today announced results for the fourth quarter and the year ended Dec. 31, 1995.

For the fourth quarter ended Dec. 31, 1995, Creative reported net sales of $1,734,000 compared with net sales of $9,574,000 in the fourth quarter of 1994. The net loss for the quarter was $4,837,000 or 85 cents per share, compared to net income of $1,284,000 or 26 cents per share on a fully diluted basis in the year-ago quarter.

For the year ended Dec. 31, 1995 the company had net sales of $14,142,000 compared with net sales of $30,066,000 for the year ended Dec. 31, 1994. The net loss for the current year was $7,251,000, or $1.33 per share, compared to net income of $3,513,000 or 70 cents per share on a fully diluted basis for the year 1994.

"1995 was obviously the most difficult year in our corporate history" stated Richard Helfman, president. "After achieving record operating results in 1993 and 1994 due to the strong demand for pasta machines, the entry of a host of new competitors and weak consumer demand in 1995 had a significant negative impact on sales and earnings. This, coupled with higher interest and depreciation charges, the unsuccessful product launch of the Wonder Cooker, and the write off of certain assets, all contributed to the dismal operating results."

"Our strategy to reduce our reliance on niche electric items and maximize the strength of our customer base and distribution network, however, bore fruit in the fourth quarter with the signing of the Brabantia distribution agreement. The extensive and diversified Brabantia line of non-electric home products, which we began distributing in January 1996, has been extremely well received by the retail community" said Helfman. "These high quality housewares are basic non-promotional items insulated from the exaggerated seasonal and cyclical swings inherent in our small electrics business. Brabantia's high end profile and world renowned reputation for quality fit in perfectly with the current trend among retailers to upgrade their product selections and will allow us to quickly and successfully place Brabantia at retail throughout the United States. Orders are being received from our existing customers and new accounts are being added every day," said Helfman. "Moreover, pursuant to our strategy of expanding into other high end houseware lines, we have identified several other quality houseware manufacturers whose items will complement Brabantia and fit into our existing distribution network. We hope to have at least one more agreement in place in the near future."

Helfman added that during last year Creative reduced overhead expenses by over $1 million and raised $2.5 million in new equity through a private placement. The company is continuing to raise additional equity and in March 1996 entered into a settlement agreement with its secured lender that resulted in a pre-tax gain of approximately $1.5 million which will be realized in the first quarter.

Helfman concluded by saying, "We are confident that 1995, although painful, was a transition year and that the corporate strategy now being implemented will be successful and allow our growth to resume this year on a much stronger business foundation."

Creative Technologies designs, manufactures, markets and distributes patented electric products for use in the home kitchen. Since Jan. 1, 1996 they are also the exclusive U.S. importer and distributor for Brabantia, one of Europe's most respected manufacturers of non-electric housewares. -0-

                   Creative Technologies Corp.
               Condensed Statements of Operations
                    (000's except per share)

                             Three Months Ended          Year Ended
                                  Dec. 31,                 Dec. 31,
                             1995         1994        1995         1994

Net sales                   $1,734       $9,574     $14,142      $30,066

Cost of sales                4,786        5,889      10,885       17,082

Gross profit (loss)         (3,052)       3,685       3,257       12,984

Operating expenses:
 Selling, general and
  administrative expenses      790        1,417       4,699        5,169
 Advertising expense           726          700       4,753        3,307
 Interest expense              511          272       1,298          609
                             2,027        2,389      10,750        9,085

Net (loss) income before
 (benefit) provision
 for income taxes           (5,079)       1,296      (7,493)       3,899

(Benefit) provision for
 income taxes                 (242)          12        (242)         386

Net (loss) income          $(4,837)      $1,284     $(7,251)      $3,513

Net (loss) income
 attributable to
 common shareholders       $(4,837)      $1,270     $(7,251)      $3,478

Primary (loss) earnings
 per common share           $(0.85)       $0.26      $(1.33)       $0.74

Fully diluted (loss)
 earnings per common share  $(0.85)       $0.26      $(1.33)       $0.70

CONTACT: Creative Technologies Corp., Brooklyn

David Guttman or Richard Helfman, 718/492-8400