Northgate Innovations Launches Latest Generation True Multimedia PC: PC to Compete With Apple iMac.

Business Editors & High-Tech Writers

CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--July 24, 2002

Northgate Innovations Inc. (OTC BB:NGTE), today announced the highly anticipated release of the latest version of its Integra(TM), the latest generation true multimedia Personal Computer.

The Northgate Integra(TM) is an all-in-one Solution. It is a PC powered by the Intel Pentium 4 processor, and Microsoft(R) Windows(R) XP operating system. The Integra(TM) is also a TV and digital film producer, a recording studio, an FM Radio, a digital photo editor and library, a DVD Home Theater with surround sound offered as standard feature, a remote controlled player, and wireless operated PC, also wireless network attached PC.

The Integra(TM) is highly expandable, and features a high resolution 15-inch or 17-inch TFT LCD Display and a very small footprint measuring 15-inches in height, 15-inches in width and 7-inches in length with the base, the LCD is 2-inches in thickness.

Prices start at $1,099 from Northgate channel of Authorized resellers and International distributors. Northgate is launching the release of its Integra(TM) on National TV Shopping Channels with extensive coverage and total viewers exceeding 80MM households.

Northgate will be using Intel P4 and Microsoft Windows XP Home to compete against the Apple e.Mac and i.Mac market place. Initial market research and consumer indications show that the Northgate Integra(TM) is a very attractive alternative to the Apple products and has been well received by traditionally loyal Apple users.

Apple users can expect a minimum of 35% increase in performance, 35%-40% initial cost savings, and more than $350 of additional value offered by the multimedia feature rich Integra(TM). Northgate will position the Integra(TM) to consumers, K-12 Educational market, and home entertainment.

"The Intel Pentium 4 processor delivers superior performance and an enriched experience for digital music, 3D gaming, digital imaging, and digital video. Apple users will be very impressed with Northgate Integra(TM), in fact, our processor will run circles around the Apple iMac G4 processor, and it does not even belong on the same performance chart," stated T. Ayoub, Northgate's vice president of sales and marketing.

Northgate is leveraging the strong presence of Microsoft XP and the extended multimedia features and enhancements in the User Interface.

Ayoub continued: "Every once in a while, we come across a product that can truly change the landscape in the PC market place. The Northgate Integra(TM) is that product today, and it crosses the boundaries from the PC industry to home entertainment, and a wide range of digital multimedia uses. We are excited to be part of the total solution offering, by delivering Microsoft XP with each Northgate Integra(TM), and enabling users to experience the most user friendly interface."

Northgate's Integra(TM) is constructed with a simple "h" shape design. Its creative sliding seat allows the users to push it backward, sit lower, further away from the screen or vice versa. It provides the optimum comfort for all users. Built with either a 15-inch or 17-inch TFT screen, the Integra(TM) is radiation free with 1024x768 resolution in any position, it displays clear text, video, and graphics.

The unique design of Integra(TM) features a small footprint, nearly 40% less space than traditional PCs. Users can expect a complete "plug-n-play" installation in just a few moments with convenience and ease.

Northgate's Integra(TM) includes a built-in sub-woofer and 5.1 channel speaker jacks as standard specifications. Users can enjoy full sound effects by the use of an X-earphone delivering 4.1 channel speaker quality sounds, or use with external speakers to deliver full 5.1 surround sound(TM). The Integra(TM) comes standard with DVD, and CDR-W, and easy-to-use DVD software.

Northgate's Integra(TM) is offered standard with firewire interface and four USB 2.4 ports for maximum performance in downloading video and high-speed connections to external peripherals. The Integra(TM) is also offered standard as a network ready, as well as Internet ready. Wireless network connectivity is offered as an available option. Also, the Integra(TM) is secured with a built-in Firewall to address concerns on security.

About Northgate Innovations Inc.

Northgate is a leading manufacturer of PCs, Laptops, workstations and servers. The company is well recognized by consumers and business users as a result of its extended TV exposure over the last 13 years, and the substantial installed base of customers accumulated over this period.

Northgate offers its products to a number of high profile TV channels resellers, value added resellers, and has recently established a comprehensive program to authorize 1,000 resellers in the United States, in addition to expanding its international distribution network.

Northgate products are recognized for BTO (Build to order) models, as users can custom configure their systems based per their requirements and application needs. Northgate is capable of shipping thousands of orders each day, delivering up to 30,000 PCs a month throughout its distribution channels and direct Educational and Government contracts.

Safe Harbor 

The statements in this news release that relate to future results, market penetration, projected revenue growth and profitability trends, are forward-looking statements. These forward-looking statements involve certain risks and uncertainties associated with demand for the company's products and services, development of markets for the company's products and services as well as other risks identified in the company's SEC filings. Actual results, events and performance could differ materially. Readers are therefore cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Northgate Innovations undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.