ARKONA Announces Quarterly Results, Growth Continues at a Record Pace; Company Increases Revenues By 63% Over Previous Year

SALT LAKE CITY--Jan. 2, 20047, 2004--ARKONA Inc. (ARKN), the leader in web-enabled dealer management solutions for the automobile industry, today announced record revenues for its third fiscal quarter.

For the quarter ending December 31, 2003, the company reported earnings of $102,000 on revenues of $1,309,000, as compared to a loss of ($355,000) on revenues of $802,000 for the same period last year.

"In a quarter which has traditionally produced slow growth, we are very pleased with our strong profits and record revenues. The 63% increase in revenues is a reflection of the strong demand we are experiencing in the marketplace for our products and services," said Alan Rudd, Chief Executive Officer. "Beginning last quarter and continuing through the end of our fiscal year ending March 31, 2004, we are making significant but prudent investments in technology and customer support infrastructure to grow the company at an even faster pace."

In another first for the company, ARKONA has been invited to exhibit at the National Automobile Dealers Association convention, January 30th - February 2nd in Las Vegas. Sponsors of the event are anticipating more than 26,000 convention attendees. ARKONA will maximize its marketing dollars by gaining access to thousands of automotive decision makers in one place at one time.

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 e-business 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.