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Digital Lifestyles Group and Alloy, Inc form strategic alliance

Digital Lifestyles Group Teams Up With The Nation’s Leading Youth Marketer to Introduce hip-e, The First Digital Lifestyle Platform for Teens

Austin, Texas – July 8, 2004 – On the heels of its recent name change and the announcement of the hip-e brand and product line, Digital Lifestyles Group, Inc. (OTCBB: NGTE), designer, manufacturer and marketer of digital lifestyle products, today announced that it has formed a strategic alliance with Alloy, Inc. (Nasdaq: ALOY), the nation’s leading youth marketer, for the upcoming introduction of hip-e– a new line of products that will seek to define a new “teen computing and digital lifestyle” category within the computer industry. 

This exclusive strategic alliance combines this dynamic new brand with Alloy's network of proprietary assets aimed at reaching the youth market. Through this relationship, Digital Lifestyles Group and Alloy will launch the hip-e brand and define the product line as a new experience in computing that is simple, fun and relevant to teens’ digital lifestyles. 

"Alloy’s marketing expertise coupled with the reach of its individual properties provide hip-e with established and proven integrated marketing channels to launch the hip-e brand of products and services in a compelling way to the growing, influential and underserved teen market,” said Kent Savage, Chairman and CEO of Digital Lifestyles Group, Inc.  “This alliance underscores hip-e’s commitment to serving the digital lifestyles of today’s teen market."

“We are thrilled to align with such a compelling youth brand and product line as hip-e. It promises to redefine the teen computing industry", said Matt Diamond, CEO and Co-founder of Alloy, Inc. “This breakthrough brand, coupled with the creation of a compelling and dynamic marketing program through Alloy's media and marketing companies guarantees the hip-e launch will draw widespread attention from teens and general consumers alike.  The combination of hip-e's concept and our vast network of teen properties is unbeatable.”

Digital Lifestyles Group is working closely with Alloy’s media and marketing companies in the development of an integrated launch program for hip-e that will utilize multiple Alloy properties:

AMP Agency, Alloy’s promotional marketing business

Unique Marketing and Promotions: AMP has created a host of strategic and dynamic marketing activities and consumer promotions to support the launch of the hip-e brand

Market Research:  AMP’s consumer research unit has worked closely with Digital Lifestyles Group in conducting the market research that validated the concept and guided the development of the hip-e product line

Technology Collaboration:  AMP’s full service digital marketing unit is providing its expertise and counsel in  hip-e’s web and software development

360 Youth, Alloy’s youth media and marketing business

Media:  hip-e will utilize several proprietary media properties surrounding teens throughout their day

Scheduled for introduction on August 11, 2004, hip-e will focus on products, services and customized technologies that address the unique needs of the growing and underserved teen market. 

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 (, , direct sales force, third-party resellers and retail stores. More information about Digital Lifestyles Group is available at

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.