Digital Lifestyles Group
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Northgate Innovations changes name to Digital Lifestyles Group to reflect new vision, strategy and product line.

Digital Lifestyles Group Poised to Introduce hip-e™ – The First Digital Lifestyle Platform Designed Exclusively for the Underserved Teen Market

CITY OF INDUSTRY, CA, JUNE 28, 2004 – Northgate Innovations, Inc. (OTCBB: NGTE), today announced that the Company has changed its name to Digital Lifestyles Group, Inc., to reflect an aggressive new vision and strategy. The name change coincides with the announcement 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. Set to begin roll out 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.

“The creation of Digital Lifestyles Group is the final step in preparing our Company for its next phase of aggressive growth, driven by the launch of the hip-e brand of products and services that taps into the growing and influential teen market,” stated Kent Savage, Chairman and CEO at Digital Lifestyles Group, Inc. “hip-e defines a new experience in computing that is simple, fun and relevant to teens’ digital lifestyles. Our research shows that hip-e resonates with teen audiences and we believe it will create a new category of teen computing and digital lifestyle products. Our intent is to dominate this category and own the teen market.”


hip-e: A Big Idea with a Simple Concept

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. hip-e will be marketed to a 33 million strong US teen audience in which $660 billion is spent annually on products and services. Digital Lifestyles Group will implement several traditional and non-traditional sales and marketing tactics to generate excitement and spur interest within this market for the hip-e brand. Through an innovative direct-to-consumer communication structure, hip-e will seek to build customer loyalty as well as generate multiple, recurring streams of revenue for Digital Lifestyles Group through sales of hardware, accessories, software and services.

Digital Lifestyles Group has established new corporate headquarters in Austin, Texas. The Company has also recruited a distinguished new management team that comprises accomplished executives who have track-records of successfully executing breakthrough strategies at major public companies including Compaq, Dell, Netpliance, Direct TV and Credit Suisse First Boston.

Digital Lifestyles Group consists of two wholly-owned subsidiaries. Northgate Operating Company will continue to focus on the Company’s existing lines of products and services, while hip-e Operating Company will focus on digital lifestyle products and services for the teen marketplace. The new hip-e brand and product line will serve as the key growth driver for the Company and is designed to become the cornerstone of the digital lifestyle experience for teens.


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.