ARKONA Releases Their Most Comprehensive Product Upgrade; Major Enhancements Strengthen Leading ASP Solution

SALT LAKE CITY--Aug. 2, 20030, 2003--ARKONA Inc. (ARKN) today released the latest version of its dealer management solution with more than 70 enhancements specifically requested by its dealers to improve productivity and profitability. The enhancements will benefit the more than 300 dealerships utilizing ARKONA's dealer management system, and strengthen ARKONA's position as the leader in providing Web-enabled solutions to automotive dealers.

Key among the enhancements is a reverse phone number lookup that allows dealers to search by customer's phone number and then have the information automatically populate screen and database fields. This customer profile feature simplifies data entry, improves accuracy and saves valuable time across the dealership.

Equally important are new productivity tools, like the one that provides service managers with a simultaneous view of seven days of scheduled appointments and then allocates resources, by skill level, to best manage the workload and the needs of its customers.

Parts department personnel will appreciate the ability to create a return on parts from a closed invoice which means re-keying part numbers, payment methods and discount levels are no longer necessary. Dealerships with active wholesale parts operations, in particular, will benefit from this new feature for its timesavings and improved data accuracy.

"We listen to our dealers about their changing competitive environment and then respond to their requests with and ever-evolving toolset," stated Rich Holland, president, ARKONA. "We've geared our management system and Web-based solutions toward forward-thinking dealers. They consistently tell us that ARKONA gives them easier access to more information and analysis than with their previous management system."

This release marks the fifth product enhancement of 2003 and demonstrates ARKONA's commitment to its dealers to deliver a management solution that is constantly improving and able to communicate with and meet the major OEMs' requirements.

For more information about all of ARKONA's Dealer Management Solutions and Web services, please call 866-478-6364 or go to www.arkona.com.

About ARKONA Inc.

ARKONA was the first to offer a true Application Services Provider (ASP) solution for the automotive industry and continues to be a market leader in providing innovative Web-based solutions for automobile dealers. A public company, ARKONA was founded in 1996 and trades under the symbol ARKN. 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.