ARKONA Expansion Continues -- Sales Offices Added in Northeast, Midwest and West

SALT LAKE CITY--Oct. 7, 2004--ARKONA Inc. (OTCBB: ARKN), the emerging company of choice in dealer management solutions for new and independent automobile dealerships, announced today the opening of new regional sales offices on the East and West Coasts, and Central United States, and the addition of three new managers to its field sales organization. The newly appointed sales personnel are Mark Hartel, Northeast Region Sales Manager; Sherry Arnold, Midwest Region Sales Manager; and Kenny Mills, West Region Sales Manager.

"ARKONA has seen dramatic growth in demand for our dealer management solutions and services since entering that market in 2000," said Alan Rudd, ARKONA CEO. "To date we serve several of the Top 100 dealer groups and count nearly 500 dealerships as our customers. By expanding our sales team, ARKONA is well positioned to attain an increasingly significant presence in the dealer community."

The new Northeastern sales office becomes ARKONA's second on the East Coast, the first being the Silver Spring, Md. office established two years ago. The Northeastern sales office is located in Portland, Maine. The Silver Spring office currently administers initial dealer setup, installation and training for the entire United States.

"This is a timely investment in our sales organization and is a direct response to the increasing number of sales opportunities," said Michael Critchfield, Director of Sales. "In addition to addressing increased demand for ARKONA products and shortening the sales process, the addition of these regional sales managers will increase the level of support to our existing customers."

The West Region Sales Office is located in Irvine, Calif. and the Midwest Region Sales Office is situated in Aurora, Colo. Telephone numbers for the offices are as follows: Northeast: 866-478-6364, ext. 2114; Midwest: 866-478-6364, ext. 2116; and West: 866-478-6364, ext. 2115.

Personnel Thumbnails

Mark Hartel, Northeast Region Sales Manager -- A 20-year sales veteran, he has worked as an account manager with Reynolds&Reynolds, ADP and Autosoft.

Sherry Arnold, Midwest Region Sales Manager -- Counting more than 20 years of sales and military logistics experience, Sherry has also owned or has been Vice President of Sales for several automotive-related CRM companies.

Kenny Mills, West Region Sales Manager -- Joins ARKONA with 18 years of sales experience and has held key sales positions with Apple Computer, WordPerfect, Novell and Vinca Corp. He was most recently with EZCopy Services where he served as Vice President of Business Development.

About ARKONA Inc.

Founded in 1996, ARKONA is a public company and a leader in automotive 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.