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Digital Lifestyles Group announces teen lifestyle computer and entertainment system hip-e at 2005 International Consumer Electronics Show (CES)

hip-e nodes designed by teens for teens

AUSTIN, TX – January 6, 2005 – With more than 33 million teens in the United States the market for teen computing is boundless.  Digital Lifestyles Group, Inc.  (OTCBB: DLFG), the creators of hip-e™ – the world’s first all-in-one lifestyle computer and entertainment system designed exclusively for teens by teens – today announced from the 2005 Consumer Electronics Show nationwide availability of its flagship hip-e lifestyle computer and entertainment system.   A limited amount of units were shipped last month during a “soft”, pre-holiday test launch.  hip-e will exhibit from the Microsoft Pavilion, Booth 19c, and will be featured at the ShowStoppers Media Event on Thursday, Jan. 6th at the MGM Grand Convention Center (3rd floor - rooms 315-320) as part of  the Digital and Interactive Entertainment area.

Teens now have a voice with this new and exciting technology.  The hip-e “node” comes equipped with a built-in TV tuner, a 17-inch flat panel LCD monitor and an integrated CD/DVD player, allowing teens to engage in top online activities, such as instant message, conduct research for homework, watch TV and listen to music.  Teens can also express themselves by customizing their nodes to match their tastes or their room with cool skins (faceplates) that come in vibrant colors such as pink-stripes or leopard-skin.  They can mount the system on a wall and watch TV or movies while tucked in bed, or even surf the net with the wireless keyboard. 

“hip-e started out as a simple idea to give teens what they’ve been asking for in a computer and entertainment system.  With help and feedback from hundreds of teens across the country, Digital Lifestyles has been able to bring this breakthrough concept to fruition in record pace,” said Kent Savage, chairman and CEO of Digital Lifestyles Group, Inc.  “We are extremely excited to begin shipping the highly anticipated hip-e nodes to teens around the country.  With the delivery of hip-e, we are making good on our promise to introduce a compelling product line, which addresses an enormous market opportunity and serves as a major milestone for the company and its shareholders.  This is the next chapter in the emergence of Digital Lifestyles as the leader in digital lifestyle product innovation, design and marketing.”

The all-in-one hip-e node is the perfect entertainment and communication center for a teen’s room.  The node comes bundled with the hip-e hangout, delivering a simple, fun and safe experience for instant messaging, music and videos, television and movies, online shopping, homework, and more.

The hip-e lifestyle computer and entertainment system can be ordered at www.hip-e.com, 1-877-hip-e4me, and www.amazon.com.

 

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. Our products include hip-e™, the first digital lifestyle computer and entertainment system for teens, and the Northgate® line of desktop and notebook computers for consumer, business and education customers. We sell our products through our 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

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.