ARKONA Reports Record Second Quarter Sales and Corporate Growth

    SALT LAKE CITY--Oct. 15, 2002--ARKONA Inc. (OTC: ARKN), a leader in dealer management solutions for the new and used car automobile industry, today announced record financial results for the three-month period ended Sept. 30, 2002.
    The company reported total revenue of $914,310 for the three-month period ended Sept. 30, 2002 as compared to revenue for the same period last year of $683,127. This represents an increase in revenue of 33%.
    "We are pleased with ARKONA's financial performance and the organization's execution for the second quarter," commented Steve Russo, CFO, ARKONA. "We are not currently seeing any negative impact on our business from the weakening economy. In fact, our fiscal third quarter, which is traditionally our weakest, looks strong at this point. We attribute the strength we are seeing in this uncertain economy to the technologically advanced and more cost effective Dealer Management Solution (DMS) that ARKONA offers the marketplace."
    In addition to expanding its customer base into 34 states at the end of fiscal year 2002, ARKONA experienced a 90% growth in the number of employees and doubled the size of its sales force. ARKONA also augmented its monthly recurring revenues by 115% and increased the number of clients using ARKONA by 130%.

    About ARKONA Inc.

    Founded in 1996, ARKONA is a public company and a leader in automotive management solutions. ARKONA's Dealer Management Suite leads the market in technologically superior e-business solutions for automotive dealers. In this market, ARKONA is one of the first Application Service Providers (ASP). For more information, visit ARKONA's Web site at www.arkona.com.

    This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve known or unknown risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.