ARKONA Announces 10K Filing; Company Posts Record Revenue and Generates $0.085 in EPS for the Year

SALT LAKE CITY--July 18, 2005--ARKONA Inc. (OTC: ARKN), a leader in Web-enabled dealer management solutions for the automobile industry, today announced that it has filed its Form 10-KSB with the SEC for fiscal year ended March 31, 2005. Highlights of the 10-KSB include:

-- Revenues of $7.25 million

-- Earnings per share of $0.085 on a fully diluted basis (after tax benefit)

-- 67% increase in recurring monthly support fees

-- 44% growth in customer base

-- Four new regional sales offices

-- The signing of a new five-year lease to relocate the company headquarters to a new 25,000-square-foot facility

-- 75% increase in support personnel to meet the expected growth in demand for ARKONA products and services over the next 12 months.

"2005 was a year of building stronger market awareness and of internal investment for ARKONA, culminating in record revenues for the full year," said Alan Rudd, ARKONA chairman and chief executive officer. "Our future growth will be driven by the increasing importance of providing a dealer management system that is complete, scalable and cost-effective for dealerships of all sizes. We expect to gain further traction with dealer groups and mid- to large-sized dealerships in 2006 as additional complementary products are released which will help these organizations more effectively conduct their daily business. We believe the company is well positioned for strong growth in the year ahead, as evidenced by strong revenue and earning gains in our first quarter of fiscal year 2006 ended June 30, 2005."

ARKONA's 10K filing can be accessed from the ARKONA Web site at www.arkona.com/company/investors.html and then by selecting ARKONA Financials & SEC Filings. Shareholders and investors are encouraged to review the report for a more complete understanding of ARKONA's financial and market position. The company expects to report Q1/FY06 results before the end of July.

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. These risks and uncertainties include, without limitation, the risk that revenue will not grow in fiscal 2006, as expected, because of competition, technical problems, intellectual property problems, sale or operational issues or for other reasons, the risk that ARKONA will not release planned complementary products when and as expected, and the risk that potential customers will not subscribe for or purchase such complementary products. In addition, other risks are identified in the company's most recent Annual Report on Form 10-KSB, as filed with the SEC. 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.