Second Quarter Fiscal 1996 Results

CREATIVE TECHNOLOGY LTD.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
					Three months ended December 31,						Six months ended December 31,
					1995			1994			1995			1994
Sales					$ 435,007			$ 400,866			$ 733,697			$ 651,192
Cost of goods sold					344,581			300,533			579,774			484,018
Gross profit					90,426			100,333			153,923			167,174
Operating expenses:
	Selling, general and
	administrative expenses				44,213			50,450			87,071			91,045
	Research and development				10,874			12,820			19,549			21,906
	Write off in-process technology							7,000						7,000
Total operating expenses					55,087			70,270			106,620			119,951
Operating income					35,339			30,063			47,303			47,223
Interest income (expense) and other, net					(3,880)			(4,917)			(8,981)			(2,791)
Income before income taxes and minority interest					31,459			25,146			38,322			44,432
Provision for income taxes					(4,713)			(3,559)			(5,744)			(5,150)
Minority interest					214			40			1,018			65
Net income					$ 26,960			$ 21,627			$ 33,596			$ 39,347
Net income per share					$ 0.31			$ 0.24			$ 0.38			$ 0.44
Average ordinary shares and equivalents outstanding					88,059			89,619			87,947			90,253

CREATIVE TECHNOLOGY LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
					December 31,			June 30,
					1995			1995
ASSETS
Current assets:
	Cash and cash equivalents			$	127,266		$	127,428
	Accounts receivable, less allowances of $19,351 and $9,519				193,293			146,949
	Inventory				308,124			262,091
	Other assets and prepaids				30,469			31,759
	Total current assets				659,152			568,227
Property and equipment, at cost less accumulated depreciation					64,801			62,104
Investments and other non-current assets					31,689			30,904
	Total assets			$	755,642		$	661,235
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	206,501		$	176,373
	Other accrued liabilities				74,363			52,718
	Income taxes payable				28,822			23,690
	Current portion of long term obligations				100,302			154
	Total current liabilities				409,988			252,935
Long term obligations					1,868			101,893
Minority interest in subsidiaries					5,112			3,919
Shareholders' Equity:
	Ordinary Shares; S$0.25 par value				8,936			8,833
	Authorized: 200,000 shares
	Outstanding: 88,095 and 87,637 shares
	Additional paid-in capital				121,083			118,596
	Retained earnings				208,655			175,059
	Total shareholders' equity				338,674			302,488
				$	755,642		$	661,235