Digital Lifestyles Group and Wild Tangent take teen gaming to a new level

WildTangent game collection and WebDriver integrated with hip-e, the first lifestyle computer for teens

AUSTIN, TX – October 4, 2004 – Following the launch of hip-e, the world’s first digital lifestyle platform designed exclusively for teens, Digital Lifestyles Group, Inc. (OTCBB: DLFG) today announced an alliance with WildTangent, the leading online game publisher, to include the WildTangent Web Driver® and a series of the most popular WildTangent games integrated into the hip-e hangout on all hip-e nodes and nodebooks.  In keeping with hip-e’s role of becoming the focal point of entertainment and communication in a teen’s room, the hip-e hangout will bring visually-rich, immersive games with advanced features and game play offered by WildTangent.

“Teenagers have a passion for fun and compelling computer games. They want to experience and play online games at the highest level and through our relationship with WildTangent we can offer that to them,” said Erik Smith, Vice President of Business Development and Programming at Digital Lifestyles Group

By working with WildTangent to include online gaming, Digital Lifestyles Group furthers its commitment to providing the best entertainment and lifestyle options to hip-e users.  Built on DirectX, the industry standard in 3D technology, the Web Driver® takes advantage of the powerful hardware present in the hip-e node and nodebooks allowing robust WildTangent games to be played through the hip-e hangout, As part of the relationship, Digital Lifestyles Group will be integrating into the hip-e hangout, online versions of award winning WildTangent games including:

In addition, WildTangent will sponsor a hip-e branded website that features a group of web based games where hip-e users can compete against other online players globally.  Users will also be provided with downloadable upgrades to their pre-integrated games that will feature more advanced levels.

“Digital Lifestyles Group is creating a one-of-a-kind product that will change the way teens use their computers,” said Sean Vanderdasson, Vice President of Global Retail Marketing of WildTangent.  “The hip-e system brings various mediums of entertainment to a teen’s bedroom in a single all-in-one package and we are excited to have WildTangent be a part of it.”

The inclusion of the WildTangent game collection within the hip-e hangout solidifies hip-e’s position as the centerpiece of entertainment for teens.  The hip-e hangout provides teens with quick and simple access to instant messaging, recording, downloading, playing and burning music, watching television and movies, and now gaming.

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 1-887-hip-e4me.

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 WildTangent

WildTangent, based in Redmond, Wash., is the leading online game publisher. Founded in 1998, the company's Web Driver platform leverages DirectX technology to enable the development of high-quality games that can be delivered and played over the Internet. With more than 80 million downloads, Web Driver is the most ubiquitous online gaming platform on the market today. WildTangent can be found online at www.wildtangent.com.

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.