Digital Lifestyles Group and Simon Brand Ventures allow teens and parents to experience hip-e first hand.  

hip-e hangout stations provide destination for teens and parents to experience and order hip-e direct from Simon Malls

AUSTIN, TX – November 1, 2004 – Digital Lifestyles Group, Inc. today announced a marketing alliance with Simon Brand Ventures, the business-to-consumer arm of Simon Property Group (NYSE:SPG), to launch on-mall advertising and display stations featuring hip-e™, the world’s first lifestyle computer designed exclusively for teens, in 17 Simon malls across the country starting this month.  Following Digital Lifestyles Group’s successful participation in the Simon DTour™ Live in-mall event tour, this new alliance with Simon malls will provide teens the opportunity to experience and purchase hip-e products first hand at the malls, as well as serve as a destination to bring their parents and friends to experience hip-e themselves.

“During our initial research we asked teens where they would like to see and learn more about hip-e and they responded, ‘the mall’,” said Annie Bacon, VP Marketing of Digital Lifestyles Group.  “We are simply going where teens want to go and providing them, as well as their parents, the chance to grow familiar with all hip-e has to offer.”

hip-e hangout stations at Simon malls will be staffed by a brand ambassador, a fully trained employee knowledgeable with hip-e and all its features.  At the hip-e hangouts, teens will be able to view and interact with the hip-e node, its hip-e hangout interactive desktop, and hip-e plug-ins and accessories such as the hip-e playme MP3 personal media carrier, hip-e reachme mobile phone and backpack.

Along with being able to purchase hip-e direct online (www.hip-e.com) and over the phone (1-877-hip-e4me), teens and parents can order hip-e direct at the hangout stations.  The hip-e hangout stations will be located at the following Simon malls:

“We are glad to team up with Digital Lifestyles Group and hip-e again,” said Daniel Segal, Senior Vice President of Business Development at Simon Brand Ventures.  “hip-e was a huge hit as a sponsor partner of the Simon DTour Live events at Simon malls across the U.S.  It is an innovative product for teens that we believe their parents will also embrace. It makes for a wonderful gift, and we are pleased to help bring it to the public in time for the holiday season.”

The hip-e digital lifestyle computer can be ordered now at www.hip-e.com or 1-877-hip-e4me,
and will be available for delivery Thanksgiving 2004.

About Digital Lifestyles Group, Inc.

Digital Lifestyles Group, Inc. designs, manufactures and markets digital lifestyle products, including software, personal computers, accessories and entertainment and communication solutions. The Company’s products include   hip-e, the first digital lifestyle platform for teens, and the Northgate line of desktop and notebook computers for consumer, business and education customers. The Company sells its products through its online stores (www.hip-e.com, www.northgate.com), direct sales force, third-party resellers and retail stores.  More information about Digital Lifestyles Group is available at www.dig-life.com.About Simon Property Group, Inc.Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet® centers and community shopping centers. The Company's current total market capitalization is approximately $34 billion. Through its subsidiary partnerships, it currently owns or has an interest in 299 properties in North America containing an aggregate of 204 million square feet of gross leasable area in 39 states plus Canada and Puerto Rico. Simon also holds interests in 49 European shopping centers in France, Italy, Poland and Portugal and 4 Premium Outlet centers in Japan. Additional Simon Property Group information is available at http://www.simon.com.

About Simon Brand Ventures

Simon Brand Ventures (SBV), Simon's business-to-consumer arm, has pioneered the transformation of shopping malls into a medium where consumer brands can build one-on-one relationships with shoppers who make approximately 2 billion visits to Simon Malls each year. Simon's vast franchise of market- leading shopping centers nationwide provides SBV the foundation to monetize the distribution system through numerous consumer ventures. SBV has engaged in a number of consumer business initiatives, including the Simon Giftcard™, launch of Simon platform programs such as Simon Kidgits Club™, Simon Super Chefs Live!™, Simon DTour Live™ and Simon Mall for You™, a national media delivery channel including experiential marketing methods, and multiple national and local marketing alliances with Coca-Cola, Visa U.S.A. and Cingular Wireless, among others.

Forward-looking Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, the Company can give no assurance that such expectations or any of the forward-looking statements will prove to be correct, and future results may differ materially from those discussed in this press release. Important information regarding the factors that may affect the Company's future performance is included in its public reports that it files with the Securities and Exchange Commission. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, change in expectations, conditions or circumstances, or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.