ARKONA Inc., a specialist in

dealer management solutions for the new and used car automobile industry,

announced record financial results for the three-month period ended

September 30, 2002.

The company reported total revenue of $914,310 for the three-month period

ended September 30, 2002 as compared to revenue for the same period last

year of $683,127. This represents an increase in revenue of 33 percent.

"We are pleased with ARKONA's financial performance and the organization's

execution for the second quarter," commented Steve Russo, CFO, ARKONA. "We

are not currently seeing any negative impact on our business from the

weakening economy. In fact, our fiscal third quarter, which is

traditionally our weakest, looks strong at this point. We attribute the

strength we are seeing in this uncertain economy to the technologically

advanced and more cost effective Dealer Management Solution (DMS) that

ARKONA offers the marketplace."

In addition to expanding its customer base into 34 states at the end of

fiscal year 2002, ARKONA experienced a 90 percent growth in the number of employees

and doubled the size of its sales force. ARKONA also augmented its monthly

recurring revenues by 115 percent and increased the number of clients using ARKONA

by 130 percent.

About ARKONA Inc.

Founded in 1996, ARKONA is a public company and a specialist in automotive

management solutions. In

this market, ARKONA is one of the first Application Service Providers (ASP).

For more information visit ARKONA's Web site at www.arkona.com.