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Northgate launches first desktop linux computer on

New Northgate “L-Series” PC Line features Linspire™ and powerful Office software

AUSTIN, TX, September 14, 2004 – Digital Lifestyles Group, Inc. (OTCBB: DLFG), through its Northgate line of business, and Linspire, Inc. today announced the launch of Northgate’s first Linspire-based, fully-configured PC, initially available on (, the e-commerce site for Staples, the world’s largest office products retailer.  Marking the first system with desktop Linux pre-installed to be sold by a major office products retailer, the new Northgate “L-series” PC also features an all-in-one office software suite and six months of software downloads and updates from Linspire's CNR Warehouse™ service.

Based on the popular AMD Athlon XP processor 3000+, the L-series PC comes with 512MB of DDR memory, a 120GB HDD, a CDRW drive, a CD ROM drive, speakers, internet keyboard and an optical mouse for less than $500.  It is housed in a state of the art Mini-Tower case and includes toll free round the clock support.

“Northgate is committed to bringing the latest advanced technology to the market at a great value, and our new Linux-based PC represents a significant step forward,” said Richard Shyu, President, Northgate Division at Digital Lifestyles Group, Inc. “We are pleased to expand our relationship with Staples, an industry leader that provides customers with an easy online buying experience and the convenience of receiving the product at their home or office.”

“We're delighted that Digital Lifestyles Group has configured a system that takes advantage of unique Linspire technology, and pleased that Staples is the first office products retailer to deliver Linspire desktop Linux solutions to consumers and businesses alike,” said Michael Robertson, chief executive officer of Linspire, Inc.  “We think that consumers will be drawn to the L-series due to upfront cost savings, along with not having to deal with the hassles of viruses and spyware.”

Linspire features a full Microsoft® file-compatible office suite, which allows customers to share, view and edit Microsoft Word documents (.doc files), Microsoft Excel spreadsheets (.xls files) and Microsoft PowerPoint® presentation files (.ppt files) while keeping their original format to facilitate cross-platform compatibility. Linspire easily integrates into Microsoft Windows®-dominated networks and can share files, disks, and printers on the network using an intuitive control panel to configure. Linspire also comes with an Instant Messenger that allows users to chat with AOL's® AIM®, Yahoo!® Messenger, MSN®, ICQ®, and others all at the same time, and includes applications for media playback.

The included CNR Warehouse service provides customers digital access to over 1900 other quality software programs and updates available for download and installation with a single click. Any software downloaded from the CNR Warehouse may be used on up to 5 computers, making it a good choice for home and office needs.

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

About Linspire, Inc.

Linspire is an affordable Linux-based operating system, designed specifically for desktop and laptop computers in homes, schools and businesses. Linspire uses  CNR™ technology that allows the installation, updating and management of hundreds of software programs usually with just one click. The Linspire operating system is also offered in Spanish (, Italian ( and Japanese ( Those who are interested in becoming authorized resellers of Linspire should visit,, or if interested in selling computers pre-loaded with Linspire.

Linspire, CNR and CNR Warehouse are trademarks of Linspire, Inc.  All other company and product names may be the trademarks of their respective owners.

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.