ARKONA Inc., specializing in Web-enabled dealer management solutions for the automobile industry, on Oct. 8 announced its second consecutive quarter of record revenues and

profitability.

For its second fiscal quarter ending Sept. 30, 2003, the company reported earnings of $137,442 on revenues of $1,235,890, as compared to a

loss of ($365,101) on revenues of $914,583 for the same period last year.

"We continue to strengthen our balance sheet through debt reduction and accumulations of cash and cash equivalents," said Stephen Russo, chief financial officer. "Achieving record revenues is very satisfying to the management team, but we're even more encouraged by the fact that earnings are increasing at an even faster pace. This reflects significant increases

in personal productivity and leveraging of company assets."

"The strong growth ARKONA is experiencing is a reflection of the accelerated adoption of our unequalled Web-enabled dealer management solution," said CEO Alan Rudd. "Our business model is correctly targeted and our sales, engineering and customer service teams are

consistently meeting established levels of performance. All signs point to significant ARKONA market share gains through the third and fourth quarters and into the next fiscal year."

To keep pace with customer demand for its Internet-based dealer management solutions, ARKONA continues to invest in its infrastructure. Partnering with IBM, the company recently added a fifth IBM iSeries system to its state-of-the-art hosting facility in Salt Lake City. The new IBM model 810 will increase ARKONA's growth capacity by more than 2,000 customer connections, according to the company.

About ARKONA Inc.

ARKONA says it was the first to offer a true application services provider (ASP) solution for the automotive industry. The company continues to provide e-business solutions for automobile dealers.

A public company, ARKONA was founded in 1996 and trades under the symbol ARKN. For more information visit www.arkona.com.