ARKONA Announces Record Quarterly Earnings; Earnings From Operations Increase More than 49% Over Previous Year

SALT LAKE CITY--Feb. 1, 20055, 2005--ARKONA Inc. (OTCBB:ARKN), the leader in Internet-based dealer management solutions for the automotive retail industry, today announced revenues and earnings for its third fiscal quarter.

For the quarter ending December 31, 2004, the company reported before-tax earnings of $173,733 on revenues of $1,891,272, as compared to before-tax earnings of $116,784 on revenues of $1,309,000 for the same period last year. On an after-tax basis, the company reported net earnings of $1,938,133, or $.16 per share on a fully diluted basis, as a result of recognizing $1,764,400 in income tax benefit.

"In a quarter where we established three regional sales offices and grew our support organization by more than 25% to keep pace with demand, we are very pleased with our strong revenue growth and record profits," said Alan Rudd, Chief Executive Officer. "With the addition this month of a southeast regional sales office based in Raleigh, NC, our 12-month investment plan in sales and support organizations is ahead of schedule. The new Raleigh office is headed by Cliff Lavergne, who brings more than nine years of industry experience to the territory. We expect a strong finish to our fiscal year ending March 31, 2005."

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.