ARKONA Strengthens Market Presence: Reports Strong Earnings and Quarterly Revenues

SALT LAKE CITY--Nov. 8, 2005--ARKONA Inc. (OTC: ARKN), the technology leader in on-demand dealer management solutions for the automobile and powersports industries, today reported record quarterly revenue and strong earnings for its fiscal quarter ended Sept. 30, 2005. ARKONA posted revenue for the quarter of $2,732,305, a 77.3% increase compared to $1,541,022 for the same quarter last year. Earnings before taxes for the quarter were $243,284, as compared to a loss of ($14,846) in the proceeding year.

"Our sales, service and engineering teams remain focused and continue to deliver outstanding results in all facets of the business," said Alan Rudd, ARKONA chairman and chief executive officer. "Double-digit growth rates in new dealer installations, CRM installations and recurring monthly revenues underpinned the success of the second quarter. We expect business to remain strong through the end of fiscal year 2006."

"We are consistently, quarter over quarter, strengthening our financial position," said Lee Boardman, ARKONA chief financial officer. "Continuing increases in cash flows from operations and working capital should support the company's aggressive future growth plans."

About ARKONA Inc.

Founded in 1996, ARKONA is a public company and a leader in automotive and powersports dealer 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 on-demand solutions provider. 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. Without limiting the generality of the foregoing, the risks include the risk that the company's revenues and net income will not continue to grow throughout 2006 as a result of competitive conditions, an adverse development in the company's business or financial situations or other factors that may reduce sales or increase costs and the risk that the company will need to raise additional capital as a result of an expense associated with an unexpected adverse development, such as litigation, or from a planned expansion of the product offerings of the company. 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.