ALOY Alloy (MM)

Digital Lifestyles Group Releases Teen Research Responsible for the Creation of hip-e(TM) Product Line Research Results Bolster hip-e's Claim as the First and Only Digital Lifestyle Platform Created for Teens, by Teens AUSTIN, Texas, July 12 /PRNewswire-FirstCall/ -- Digital Lifestyles Group, Inc. (OTC:NGTE) (BULLETIN BOARD: NGTE) , today released findings from a comprehensive research that played a significant role in the development of the hip-e digital lifestyle platform for teens. Driven by the results of this research, the Company is in final stages of developing the hip-e line, which promises to define a new "teen computing and digital lifestyle" products category within the computer industry when it is unveiled on August 11, 2004. The research was conducted by AMP Agency, an Alloy Media & Marketing Company (NASDAQ:ALOY) through its consumer research unit. Results of the research emphasize that computers are the center of teens' universe and serve as the primary source of entertainment, learning and socializing. Furthermore, teens serve as the key influencer of the home with regard to technology purchases, and are keen on ecommerce. hip-e was developed and viewed within this realm as a fresh approach to technology that is completely unique and meets all of teens' digital "wants" in one cohesive set. Additionally, hip-e's styling and design, customizability and 'teen-centric' user interface also stem from teens' perspectives of what is relevant to their needs and lifestyles. "hip-e was created by the kids themselves. Teen America knows precisely the computer experience they want, and we intend to give it to them on their terms," said Kent Savage, Chairman and CEO of Digital Lifestyles Group, Inc. "hip-e is a digital lifestyle platform that is truly inspired by teens, for teens. The details of the research released today describe the key attributes teens look for in a computer experience. hip-e stems from these attributes and creates a complete digital lifestyle solution for teens." AMP worked closely with Digital Lifestyles Group in conducting the market research that spurred and validated the concept, and guided the development of the hip-e product line. AMP's research results reinforced Digital Lifestyle Group's goal of developing a computing experience that addresses the teen lifestyle and indicated that hip-e resonated universally with teen audiences. The research, based on quantitative surveys and qualitative focus groups, revealed that: * Computers are the center of the teen universe and serve as the source of entertainment, learning and socializing * In a teen's perfect world technology would encompass three core values: - Connectivity - allowing them to keep in touch with friends and the world, whether at home or on the go - Entertainment - provide them with fun and access to their interest - Simplicity - portability and multi-functionality of the tech devices that they use * hip-e was perceived as taking a fresh approach to technology that speaks directly to teens and clearly meets their needs for socializing, entertaining and learning - Teens feel hip-e delivers connectivity, entertainment and simplicity * hip-e's relevance to teens was evident due to its: - Design and styling - Teen-centric user interface - Customizability - All-in-one cohesive set that answers to all their digital "wants" - Seamless integration - visually and operationally * hip-e consistently ranked higher when teens compared it to their existing computer experience "Our research shows that teens want their digital experience to be customized for their needs and lifestyle," stated Alisha Kolski, Vice President of AMP's consumer research unit. "hip-e delivers what teens are seeking in terms of user-friendliness, connectivity and entertainment, providing the most utilized products for teens designed with significant input from teens." About Digital Lifestyles Group Digital Lifestyles Group, Inc. designs, manufactures and markets digital lifestyle software, personal computers, accessories, 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 (http://www.hip-e.com/, http://www.northgate.com/), direct sales force, third-party resellers and retail stores. 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 their forward-looking statements will prove to be correct, and future results may differ 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. DATASOURCE: Digital Lifestyles Group, Inc. CONTACT: Kimberly Storin of MWW Group, +1-212-827-3752, or , for Digital Lifestyles Group, Inc. Web site: http://www.hip-e.com/ http://www.northgate.com/

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