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Aureal And Creative Engage In Legal Skirmish

Fremont, CA - March 5, 1998 - (AURL: OTC Bulletin Board) Aureal Semiconductor Inc. today announced that it has been served with a suit for patent infringement filed by Creative Technology Ltd., a Singapore corporation and its subsidiary, E-MU Systems, Inc., a California corporation in federal district court in the Northern District of California. The suit alleges that Aureal’s Vortex 8820 AC’97 Digital Audio Processor infringes United States Patent No. 5,342,990 entitled "Digital Sampling Instrument Employing Cache-Memory" which describes a specific implementation for an electronic musical instrument designed by E-MU Systems, Inc.

Aureal has reviewed the allegations in the complaint and believe that the action is without merit and intends to vigorously pursue defense of this action. The suit was filed just days after Aureal announced design wins for its AU8820 chip. Aureal is currently reviewing its alternative courses of action relative to the Creative complaint and expects to respond very aggressively.

"We are disappointed that such a suit could even be filed in the U.S. legal system today," said Kip Kokinakis, President and CEO of Aureal. "We believe this suit is not only without merit, but has been filed with the primary intent of slowing down Aureal’s movement to bring important improvements in audio technology to the PC marketplace. I guess it reaffirms our belief that we have arrived as an important force in the market when Creative sues us."

About Aureal

Aureal builds advanced audio semiconductor and software solutions that increase functionality and features for personal computers and consumer electronics devices. Together with its subsidiary, Crystal River Engineering, a recognized pioneer of 3D audio technology, Aureal provides products designed to raise audio standards and lead audio quality into the third dimension with its line of Aureal 3D (A3D) technologies. For information on Aureal, its products, and its industry leading A3D audio technologies, please call Corporate Communications at 510-252-4582, or visit our Website at

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including, but not limited to, dependence on the PC and consumer electronics industries and on product lines based on new technologies; foundry capacity, availability and reliability; competition and pricing pressures, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

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Note to Editors: Aureal, the Aureal logo, Aureal 3D and A3D are trademarks of Aureal Semiconductor Inc. Other trademarks are properties of their respective owners.

PR Contact:
Public Relations
Michael Arrington
Aureal Inc.
4245 Technology Drive
Fremont, CA 94538

vox: 510-252-4326
fax: 510-770-0132


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Last modified Friday, August 6, 1999