ARKONA Delivers Dealer Management Systems to Chapman Automotive Group; ARKONA Solutions Now Installed in 20 Chapman Dealer Locations

Business Wire, Jan 10, 2006

SALT LAKE CITY -- ARKONA Inc. (OTC: ARKN), the leader in on-demand dealer management solutions for the retail automobile industry, and Chapman Automotive Group, one of the 50 largest retail and service automotive groups in the United States, today announced that ARKONA's dealer management system has been installed in all of Chapman's Arizona and Nevada dealerships. ARKONA's relationship with Chapman began more than four years ago when the first dealership was installed in the Phoenix area.

"Chapman Auto Group is committed to ARKONA's dealer management solutions and has benefited financially from implementing them," stated Allen Elggren, controller, Chapman Automotive Group. "ARKONA has proven to be an ideal fit for our dealerships, representing 14 manufacturers, and our dealer group. Our ability to consolidate, when needed, for group financial reporting, and then to use a common manufacturer's statement for all our dealerships and the group, has significantly improved our analysis and control. All this is done using the ARKONA software, without moving data to spreadsheets or other reporting products."

Built on IBM iSeries technology, ARKONA's proven dealer management solutions enable Chapman Automotive Group's 20 dealerships, along with other entities, to conduct accounting, sales, parts ordering/return and service functions with complete integration to the dealer's OEMs. Each day, more than 1,200 Chapman employees use ARKONA to conduct all facets of the group's business. As the Chapman Auto Group continues to expand, ARKONA provides a cost-effective and efficient method to accommodate that growth.

"The relationship with the Chapman Auto Group is significant to ARKONA due to Chapman's size and reputation in the dealer community," said Rich Holland, president, ARKONA Inc. "Working with Chapman has given ARKONA the opportunity to deploy its dealer solutions into a sizeable and demanding multidealership environment. Large dealerships and dealer groups have seen what has been accomplished with Chapman, and we are confident that many will now seriously consider implementing ARKONA."

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. 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.