ARKONA Announces Competitive Upgrade for EDS ARG Dealerships

SALT LAKE CITY--April 28, 2004--ARKONA Inc. (OTCBB: ARKN), the emerging leader in dealer management solutions for automobile and powersports dealerships, announces the development of tools and in-house expertise necessary to rapidly convert and migrate Electronic Data System's (EDS) dealer management systems data to ARKONA's next-generation dealer management system. This newly developed technology is in direct response to EDS' recent divestiture of its Automotive Retail Group. Because both the EDS & ARKONA systems are built upon IBM's award-winning iSeries technology, the migration to ARKONA is made easy while protecting the dealer's investment in hardware and customer data. ARKONA provides EDS dealerships with the option of moving to either an in-house or Web-based ASP delivery solution at a fraction of their current system costs.

"We used EDS for several years and found we were not able to conduct our high-volume parts wholesale operations as we desired," said Jim Hinckley, dealer principal, Hinckley Dodge, Salt Lake City. "With the switch over to ARKONA, our parts department is able to meet the challenges of the competitive parts business environment, and our dealership as a whole has benefited from the efficiencies inherent within the ARKONA solution."

"Our transition to ARKONA went very smoothly and we were up and running with all the necessary data in the agreed upon time," stated Judi Friday, dealer principal, Friday Motors. "There is a marked difference between the system we previously used and the ARKONA dealer solution -- we now have even more features, yet, our costs are significantly less. The migration to ARKONA was seamless and painless."

To financially assist existing EDS ARG dealers, ARKONA will waive its software license and data conversion fees for EDS dealers upgrading to ARKONA before Dec. 3, 20031, 2004. Any EDS ARG dealer wanting to see the ARKONA dealer management system, using the dealer's own data, can arrange for a Web-based demonstration with only a day's notice.

"For dealers that have built their businesses and have relied on EDS, the ARKONA dealer management system is the logical upgrade path and the most inexpensive alternative," said Richard Holland, president of ARKONA. "A dealer that has, in the past, relied on EDS can protect their hardware investment or even eliminate hardware dependence all together by taking advantage of Internet technology and upgrading to ARKONA's ASP offering."

About ARKONA Inc.

Founded in 1996, ARKONA is a public company and a leader in automotive and powersports management solutions. ARKONA's Dealer Management System also leads the market in technologically superior e-business solutions for automotive dealers that fully integrate back office systems with a retail Web presence. In this market ARKONA is the premier Application Service Provider (ASP). For more information visit the ARKONA 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.