The following letter was issued June 4, 2002 by

Arkona Inc.:

Dear Shareholder,

I joined Arkona Inc. (then called Sundog Technologies Inc.) as the

President and Chairman in January 2000. At that time, stocks of Internet

and information technology companies with no or little revenue were selling

for hundreds of dollars per share and, in order to become a part of the

Internet boom, Arkona was developing both a database migration product and a

secure email product through its Qui Vive Technologies subsidiary.

Many of you became Arkona shareholders during that time

believing that Arkona could experience explosive growth within the

information technology bubble. I joined Arkona based upon my belief in such

growth possibilities. As we all know, the bubble has burst, and many of the

Internet and information technology companies formed during that time are

bankrupt, limping along or have been sold at fire sale prices. During the

period leading up to and immediately following the bubble break, Arkona's

management had to face some realities regarding the market-or absence of

market-for Arkona's technologies and make some difficult decisions to sell

or abandon the lines of business that brought me and many of you to Arkona.

Unlike many of its peers, however, Arkona is still intact

and, I believe, has a bright future. In late 2000, I introduced Arkona to

Richard Holland and his small startup company, Ensign Information Systems.

Ensign was attempting to revolutionize the technology environment in which

automobile dealers operated. Although in the infant stages of development,

Ensign's back office software for automobile dealerships looked promising,

and their target market clearly had a need that was not adequately being

addressed. At that time, Arkona had established a strong marketing and

management team, while Ensign had strong technical and industry expertise.

Neither had significant capital, but we believed that a combined

Arkona-Ensign entity could secure enough funding to prove the marketability

of Ensign's dealer management product and possibly take advantage of some

synergies between the Ensign product and Arkona's data movement technology.

Arkona completed the acquisition of Ensign in November of 2000 and

began releasing automobile dealer management products under the name of

Arkona in the spring of 2001. We continue to operate the company with

bootstrap funding, but we are poised to play a significant role in providing

the automobile dealer industry with new technology and fresh business

practices. Over the past year the market has responded, conclusively, that

our products and business approach increases productivity and significantly

reduces a dealer's cost of ownership.

With that background, I wish to thank those investors who believed

in the management team and in our commitment to Arkona, who put their

capital and support behind the company and who have been patient and

supportive in this transition period. Our business has continued to expand

through this period of recession. As more automobile dealers become exposed

to our dealership management software, we expect to continue to expand and

hope to start increasing our rate of expansion.

Arkona's management has focused on building a business, not managing

the stock price. Our premise is that if we build a solid business based on

industry acceptance of our products and profitability, the stock will take

care of itself. As a result of that focus, the price of Arkona's stock

remains at a level that I believe does not reflect the value of Arkona. I

cannot predict the movements of Arkona's stock in the future, and certainly

do not predict the sort of rapid increase in value that was prevalent during

the late 1990s. I do, however, believe that Arkona's key product,

management and staff, and business plan are solid and that persons investing

in Arkona at today's prices will be investing in a company that is poised

for significant growth into the future.

As the Chairman and Chief Executive Officer of Arkona, I

encourage you to once again start looking at and following Arkona. Our SEC

filings are available at

www.sec.gov. Our periodic

press releases and other information about Arkona's business are available

at www.arkona.com. We invite you to review our SEC

filings, visit our website and call Steve Russo, our Chief Financial Office,

directly at (801) 501-7110. We believe that you will be pleased with the

new Arkona that we are building.

Very truly yours,

Alan Rudd

CEO & Chairman