Digital Lifestyles Group
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Digital Lifestyles Group announces design and manufacturing alliances with M3, Inventec, Arima, Spec Research and Zylux 

Digital Lifestyles Group Reveals Relationships with Leading Design and Contract Manufacturing Firms to Produce hip-e™ – The First Digital Lifestyle Platform Inspired by Teens and Designed Exclusively for Teens

AUSTIN, TX, AUGUST 4, 2004 – Digital Lifestyles Group, Inc. (OTCBB: DLFG), today announced that it has entered into relationships with several leading companies that, together, have formed an alliance to produce the hip-e line of teen computing and digital lifestyle products.  Digital Lifestyles Group is collaborating with M3 Design Inc., Inventec Corporation, Arima Group, Spec Research and Zylux to create a unique product that seamlessly blends hardware and software, and which is designed to provide an unsurpassed user experience that fits perfectly within teens’ lifestyles.  Set to begin roll out this month, hip-e will address the unique needs of the growing and underserved teen market.    

 “hip-e is an exciting new line of products that we envision will enjoy immense popularity among teen audiences.  hip-e evolves from a design philosophy that blurs the lines between hardware and software, both operationally and visually, and will deliver a turnkey platform that is optimized for teen content and application usage.  Undoubtedly, M3, Inventec, Arima, Spec Research and Zylux have proven critical to our efforts in delivering this innovative product to our teen customers,” said Kent Savage, Chairman and CEO of Digital Lifestyles Group, Inc. “They have established reputations in the industry for high quality design and manufacturing capabilities, and we are very pleased to work with them in producing the hip-e line of products.”

Inspired By Teens, Developed By Industry Experts

Developed after conducting extensive market research studies and in-depth audits on what teens want in a computer experience, hip-e is the first digital lifestyle platform that gives teens a complete all-in-one solution, with a cool design language and brand that conveys the teen digital lifestyle.  Digital Lifestyles Group worked closely with M3 Design Inc. to develop hip-e’s vibrant design language and tightly integrate it within both hardware and software.  The result is a compelling, simple and entertaining experience with impressive functionality that is matched by its gripping design. 

“When hip-e was first conceived, we recognized an immense opportunity to design a product exclusively for teens and respond to their extensive digital lifestyle needs,” said Terry Branson, President of M3 Design Inc. “We are delighted that Digital Lifestyles Group is answering this need in the market, and we’re very excited to play a role in launching the hip-e product line.” 

Produced by the World’s Leading Manufacturers

Digital Lifestyles Group has established relationships with some of the world’s leading manufacturing companies to ensure the highest quality of production for its hip-e line of products.  Inventec Corporation, Arima Group, Spec Research and Zylux, all based in Taiwan, R.O.C., are leveraging their tremendous expertise in manufacturing consumer electronics products to produce the hip-e line of products and achieve industry-leading quality.    

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 Inventec Corporation

Inventec Corporation is one of Taiwan's largest notebook PC manufacturing companies with more than 8,500 employees worldwide focusing on PC related business.  For more information visit www.inventec.com.

About Arima

Arima Computer, one of leading original, design, and contracted manufactures in the world. With full spectrum of digital product design, development and manufacturing, through an efficient global logistic manufacturing system, a powerful technology and engineering combination, Arima is a value added business enabler and a good manufacturing partner in business of worldwide basis. For more information about Arima, please visit the company web site at www.arima.com.tw.

About Zylux

Zylux Acoustic Corporation is a leading designer and OEM manufacturer of micro full range transducers and audio systems.  Zylux's passion for service to its customers spans over two decades, as a trusted partner of the world's leading brands, offering full service transducer and speaker system design.  With its Taipei based R&D development, ISO 14001 approved China-based manufacturing facility and US based sales organization, Zylux is a preferred choice globally for one-stop development of speaker and audio solutions. For more information about Zylux, please visit the company web site at www.e-zylux.com.

About Spec Research

SPEC Research is a PC input device manufacturer and product developer based in Walnut, California; with manufacturing facility in China and sales and support office in Taiwan, offering comprehensive PC input device design and development services.  SPEC Research offers quality and integrated product development services for our OEM and ODM clients worldwide.  Our development, manufacturing and customer support teams focus on providing excellent services and building long-lasting partnerships.  Clients include APC, Targus, and Digital Lifestyles Group.  For more information, please visit our websites, www.spec-research.com, and www.dynapoint.net.tw.

About M3

M3 Design, Inc. is a product development consultancy based in Round Rock, near Austin, Texas, offering integrated product design and development services.  M3 works as an outsourced extension of a client team to design high tech, medical and consumer products for companies throughout the U.S.  For further information visit www.m3designinc.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.