SOURCE: Digital Lifestyles Group

June 22, 2006 06:00 ET

Digital Lifestyles Group Announces Filing of Its 2005 Annual Report on Form 10-K

Filing Represents a Major Milestone to Finalizing Merger With Protron Digital Corporation

WALNUT, CA -- (MARKET WIRE) -- June 22, 2006 -- Digital Lifestyles Group Inc. (PINKSHEETS: DLFG) (the "Company") today announced that it has completed its annual audit for fiscal 2005 and has filed its Annual Report on Form 10-K for 2005 with the Securities and Exchange Commission ("SEC"). The Company further announced that it expects to file its quarterly reports for 2005 within approximately two weeks. In March 2006, the Company announced the signing of a definitive merger agreement with Protron Digital Corporation ("Protron"), a consumer electronics company focused on the manufacture and sale of home entertainment systems. Protron is a privately held company, of which one of its principal owners is Leo Chen, a member of the board of directors of Digital Lifestyles Group.

Andy Teng, Chairman and Chief Executive Officer of the Company, stated, "We believe this filing is a major milestone toward our objective of finalizing the merger with Protron. While this audit has taken longer than we originally anticipated, we have worked extremely hard focusing our energy and resources toward getting our financial results finished for fiscal 2005, as well as fiscal 2004. While we do still have the quarterly filings to complete, which we expect to finalize in the next ten days to two weeks, as well as any remaining 2006 filings, this filing paves the way for us to finalize the reorganization of the Company through the merger with Protron. We are truly excited about our opportunities for the future. We plan to continue focusing our time and resources to finalize the remaining financial reports as part of concluding the merger with Protron as soon as possible. We will continue to provide updates and inform our shareholders as these steps progress."

Leo Chen added, "Protron acknowledges and appreciates the efforts to date that Digital Lifestyle Group has put into getting its financial reporting current with the SEC. We at Protron agree with Andy that this filing is a significant step for Digital toward completing the merger, which will allow these companies to move forward and begin the next phase together."

ABOUT DIGITAL LIFESTYLES GROUP INC.

Digital Lifestyles Group Inc. is a computer and consumer electronics company that designs, manufactures and markets digital lifestyle products. More information about Digital Lifestyles Group will be made available upon request.

FORWARD-LOOKING STATEMENTS

Statements in this news release which are not purely historical facts are forward-looking statements, including statements containing the words "believe," "estimate," "project," "expect" or similar expressions, and statements such as those related to the ability of the Company to continue to comply with the terms and conditions of its previous agreements, and its ability to complete the merger transaction, audit work and necessary filings with the SEC. These statements are made within the meaning of Section 27A of the Securities Act of 1933, as amended, and the provisions of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are based upon information available to the Company on the date of this release. Any forward-looking statement inherently involves risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the ability for the Company to raise sufficient funds to operate the business going forward, successful implementation of its restructuring plan, including the ability to generate positive cash flow from operations and the ability of the Company to satisfy its existing creditors, the ability of the Company to consummate the merger transaction, which is subject to a number of contractual, conditions, such as shareholder approval, the general acceptance of the Company's products in the marketplace, the ability of the Company to compete with its competitors and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. There can be no assurance that any estimations or projections set forth in this release can be obtained. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. Readers are cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • Investor Contact:
    Andy Teng
    (626) 625-5705