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Digital Lifestyles Group unveils hip-e™: The world's first digital lifestyle platform for teens

hip-e Product Line Defines a New Computer and Online Experience that is Simple, Engaging and Relevant to Teens’ Digital Lifestyles

AUSTIN, TX, August 18, 2004 If there was one place where teens could go for their computer, entertainment and digital lifestyle needs, where would they go? Digital Lifestyles Group, Inc. (OTCBB: DLFG) today answered the call by unveiling details of hip-e – the world’s first all-in-one digital lifestyle platform for teens which transcends the role of a computer to become the focal point of entertainment, communication and fun in a teen’s room.  Inspired by teens, and designed exclusively for them, hip-e will offer everything teens want in a computer experience, and more.  Instant message, watch television, surf the internet or listen and share music – hip-e will let teens do all this and much more in one simple and robust package that is as fun to use as it is functional.  hip-e will promise to create a new category of teen computing and digital lifestyle products within the computer industry.

“We are extremely excited to launch hip-e.  Teens have told us what they want and we have delivered it.  hip-e represents the culmination of their needs and we’ve packaged it in a unique design language that allows them to customize the product to express their individual tastes and identities,” said Kent Savage, Chairman and CEO of Digital Lifestyles Group, Inc. “hip-e is a fresh new idea in creating a computer experience around the lifestyle of a vibrant audience, and we are confident our teen customers will relish its simplicity, customizability and relevance to their lives.  hip-e is the first platform of its kind and is destined to become the hub of our teens’ digital lives.” 

The Antidote to the Grey Box

The hip-e platform is comprised of a new line of products including hip-e node, hip-e nodebook, hip-e Hangout, hip-e playme, hip-e reachme, and hip-e beatbox.  Each of these products serves a role in offering a complete all-in-one computing solution for teens’ digital needs.  From instant messaging, watching TV, surfing the net, shopping, connecting with friends via wireless text messaging, or listening and sharing music – hip-e will become the center of a teen’s digital world.  Elements of the hip-e platform include: 

  • hip-e node: The node is the centerpiece of the hip-e platform – a high performance computer that can be set up either on the desktop or as a wall-mounted system.  With a built-in TV tuner, a 17-inch flat panel LCD monitor and an integrated CD/DVD player, the hip-e node is the perfect entertainment center for a teen’s room.  Built-in Wi-Fi ensures that the node can be placed anywhere in the house.  A wireless keyboard, called nodeboard, eliminates unsightly and restrictive cables and offers the freedom of surfing the net or watching movies even while in bed.  The nodeboard docking station accommodates plug-in slots for hip-e playme (digital media player) and hip-e reachme (cell phone), while the hip-e beatbox clasps onto the monitor, for high quality sound.  The node can be customized to match teen tastes, with interchangeable faceplates and palm-rests.  Accessory faceplates include a variety of choices including pink-fur and leopard skin, among others.   Centered at the top of the node, is a crystal blue LED which serves as the hip-e sweepstakes light.  Teens win free games, gifts and prizes when their light is illuminated, allowing for an engaging and fun experience.
  • hip-e nodebook: hip-e will also be available ‘to-go’ with the hip-e nodebook, a portable computer that features similar functionality as the node.       
  • hip-e playme: playme is a digital media player with 512 Megabytes capacity and holds music, homework, pictures and other digital files.  playme will dock and sync up to the nodeboard for charging and managing content.  playme can also be plugged directly into the beatbox speaker system to instantly create a mobile MP3 music boom box. 
  • hip-e reachme: reachme is a cell phone and service.  The phone will dock and sync up to the nodeboard for charging.  reachme provides  text messaging, ringtones, as well as games, and is available with various pre and post pay call plans designed for teens. Service will be provided through Sprint® PCS network.  
  • hip-e beatbox: beatbox is a wireless speaker system that operates seamlessly with the other hip-e products.  beatbox will act as speakers for the node, and can also be detached and used independently with playme to create a mobile MP3 music boom box.   
  • hip-e hangout: The hip-e hangout is a fresh new approach to an interactive desktop inspired by how teens use computers and the Internet.  hip-e hangout will seamlessly tie in all the elements of hip-e’s hardware and software in one simple, relevant, customizable and exciting interface, and make all the applications teens most frequently use their computer for available at their fingertips.

Blurring the Line between Hardware and Software

hip-e evolved from a design philosophy that blurs the lines between hardware and software, both operationally and visually.  The hip-e hangout is powered by  software from industry leading companies such as Snapstream® (TV tuner software), MusicMatch® (music downloading and management console), McAfee® (anti-virus software), Microsoft® (Windows® XP and Microsoft® Office Student & Teach Edition trial) and AOL® Instant Messenger™. hip-e Hangout serves as the centerpiece of the hip-e experience by wrapping all the individual hardware and software elements into a streamlined and fun interface.  The result is an unsurpassed user experience that blends perfectly with teens’ needs and style preferences.       

The Right Product for the Right People

hip-e was developed after conducting extensive market research and in-depth interviews on what teens want in a computer and online experience.  While the current generation of teenagers is the first to grow up surrounded by digital devices and computers, this audience has until now been largely ignored by personal computer companies, and many of their needs have remained unanswered.  Digital Lifestyles Group is implementing several innovative programs to ensure that teens are aware of the choices they have with hip-e.  hip-e will be marketed to the 33 million strong US teen audience on which $500 billion is spent annually on products and services.  

Mobilizing Teens to Spread The Word

To spread the word about hip-e, Digital Lifestyles Group is adopting a unique approach to build excitement and sales within the teen community.  The company has recruited over 1,000 teens within the top 10 markets in the country as part of its hip-e squad leader viral marketing program.  Leveraging the remarkable influence teens have on their friends and peers, these 1,000 squad leaders are encouraged to talk about hip-e within their circle of friends, and also drive traffic to the various events and special promotions around their neighborhood, where teens can preview and experience hip-e first hand. 

Look for hip-e at a Mall Near You

Digital Lifestyles Group is sponsoring and participating in Simon D-Tour Live™ – a mall tour that will visit 24 cities in America between now and October 16, 2004, reaching over 140,000 teens.  On the tour, hip-e shares the spotlight with teen pop sensations, Ashlee Simpson, Ryan Cabrera and Cherie.  Teens will have the opportunity to get a hands-on experience with hip-e and learn more about the exciting product line from their peers.  A complete listing of hip-e appearances at Simon D-Tour Live locations is below. 

hip-e: Availability & Pricing

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.  hip-e will be available in the following bundled packages:

  • All-in-one node Bundle - $1,899 (Includes node, playme, reachme, beatbox and hip-e Hangout)
  • playme node Bundle - $1,799 (Includes node, playme, beatbox and hip-e Hangout)
  • reachme node Bundle - $1,799 (Includes node, reachme, beatbox and hip-e Hangout)
  • beatbox node Bundle - $1,699 (Includes node, beatbox and hip-e Hangout)
  • playme beatbox Bundle - $209
  • nodebook – $1,799 (Includes nodebook and hip-e Hangout)

Additionally, Individual hip-e products are available separately:

  • playme - $149 (Available now)
  • reachme - $129
  • beatbox - $79

Simon D-Tour Live mall tour locations and dates include:

     Garden City, NY  -  Roosevelt Field

     Ashlee Simpson, Friday, August 6th, 3:00-9:00pm

     Lake Grove, NY  -  Smith Haven Mall

     Ryan Cabrera, Saturday, August 7th, 3:00-9:00pm

     Saugus, MA  -  Square One Mall

     Ryan Cabrera, Thursday, August 12th, 3:00-9:00pm

     North Attleboro, MA  -  Emerald Square Mall

     Ryan Cabrera, Friday, August 13th, 3:00-9:00pm

     Nashua, NH  -  Pheasant Lane Mall

     Ryan Cabrera, Saturday, August 14th, 3:00-9:00pm

     Jersey City, NJ  -  Newport Centre

     Ryan Cabrera, Friday, August 20th, 3:00-9:00pm

     Rockaway, NJ  -  Rockaway Townsquare

     Ryan Cabrera, Saturday, August 21st, 3:00-9:00pm

     Waldorf, MD  -  St. Charles Towne Center

     Ryan Cabrera, Thursday, August 26th, 3:00-9:00pm

     Arlington, VA  -  Fashion Centre at Pentagon City

     Ryan Cabrera, Friday, August 27th, 3:00-9:00pm

     Glen Allen, VA  -  Virginia Center Commons

     Ryan Cabrera, Saturday, August 28th, 3:00-9:00pm

     Duluth, GA  -  Gwinnett Place

     Ryan Cabrera, Friday, September 3rd, 3:00-9:00pm

     Kennesaw, GA  -  Town Center at Cobb

     Cherie, Saturday, September 4th, 3:00-9:00pm

     Calumet City, IL  -  River Oaks Center

     Ryan Cabrera, Friday, September 10th, 3:00-9:00pm

     Orland Park, IL  -  Orland Square

     Ryan Cabrera, Saturday, September 11th, 3:00-9:00pm

     Indianapolis, IN  -  Castleton Square

     Cherie / Ryan Cabrera, Friday, September 17th, 3:00-9:00pm

     Indianapolis, IN  -  Lafayette Square

     Cherie, Saturday, September 18th, 3:00-9:00pm

     Independence, MO  -  Independence Center

     Cherie, Friday, September 24th, 3:00-9:00pm

     Topeka, KS  -  West Ridge Mall

     Cherie, Saturday, September 25th, 3:00-9:00pm

     San Antonio, TX  -  Ingram Park Mall

     Cherie, Thursday, September 30th, 3:00-9:00pm

     Cedar Park, TX  -  Lakeline Mall

     Cherie, Saturday, October 2nd, 3:00-9:00pm

     Laguna Hills, CA  -  Laguna Hills Mall

     Cherie, Thursday, October 7th, 3:00-9:00pm

     Westminster, CA  -  Westminster Mall

     Cherie, Friday, October 8th, 3:00-9:00pm

     Brea, CA  -  Brea Mall

     Ashlee Simpson/Cherie, Saturday, October 9th, 12noon-6:00pm

     Tacoma, WA  -  Tacoma Mall

     Cherie, Friday, October 15th, 3:00-9:00pm

     Seattle, WA  -  Northgate Mall

     Cherie, Saturday, October 16th, 3:00-9:00pm

 


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.


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.