Digital Lifestyles Group and SnapStream Media deliver hip-e™ TV into teens bedrooms

hip-e Digital Lifestyle Platform Features Beyond TV™ 3 software, Allowing Teens to Watch, Record and Playback Television Broadcasts on Their node or nodebook 

AUSTIN, TX, September 1, 2004 – On the heels of unveiling full product details of hip-e™, the world’s first digital lifestyle platform designed exclusively for teens, Digital Lifestyles Group, Inc. (OTCBB: DLFG) today announced a strategic partnership with SnapStream Media Inc. (www.snapstream.com) to incorporate Beyond TV™ 3 television software solution in all hip-e nodes and nodebooks.  Consistent with hip-e’s role as the centerpiece of entertainment in a teen’s room, Beyond TV™ 3 software will allow teens to watch, record and playback their favorite television programs with the touch of a button. 

“Teens love to watch TV and the hip-e node was designed to offer them control over their own personal entertainment center where they can watch and record their favorite shows and movies on their own terms,” said Erik Smith, Vice President of Business Development and Programming at Digital Lifestyles Group.  “SnapStream Media has consistently set the standards for the most robust and feature-rich personal video recording software, and we are very excited to partner with them and integrate their award-winning Beyond TV™ 3 software into the hip-e experience,” he added.  

The hip-e node is the perfect entertainment center for a teen’s room.  With a built-in TV tuner, 17-inch flat panel LCD monitor, CD/DVD player and seamlessly integrated Beyond TV™ 3 software, the high performance node can be set up either on the desktop or as a wall-mounted system.  With the hip-e node teens can:

“Digital Lifestyles Group is creating a new genre of entertainment PCs for teens that will undoubtedly become the defining trend in coming years.  We are happy to support their endeavor and excited to include Beyond TV™ 3 within the hip-e interface and experience,” said Tim Corcoran, Vice President of Sales for SnapStream Media Inc.

The hip-e digital lifestyle platform will be available for delivery by Thanksgiving 2004.  Preorders are currently being accepted at www.hip-e.com and 1-877-hip-e4me. 

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.

SnapStream Media, Inc., a leading developer of digital entertainment products, was founded in 1999 by Richard Kuo and Rakesh Agrawal. Houston-based and privately held, SnapStream Media's vision is to create high-quality consumer entertainment experiences that leverage PC technology. The company's personal video recording (PVR) software, Beyond TV™, was called "dazzlingly cool" by the Los Angeles Times, referred to as "an idea whose time has come" by the Associated Press and declared "better than TiVo" by Maximum PC. Interested parties can find more information about SnapStream Media and its products at www.snapstream.com.

Beyond TV, formerly Personal Video Station, is the most powerful and cost-effective PVR/DVR software on the market – it allows PC users to watch, record and playback television broadcasts on a variety of devices.  Unlike other PVR solutions, Beyond TV’s free electronic program guide has no subscription fees and lets users schedule recordings from an Internet browser, a WAP-enabled cell phone or a web-enabled Pocket PC.  The recorded shows can then be viewed on PCs and TVs connected to the home network, downloaded onto handheld Pocket PCs or streamed through the Internet.

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.