Exhibit 99.1
                                                                ------------
FOR IMMEDIATE RELEASE

Editorial Contact:
Dave Jenkins
ARKONA Inc.
801-501-7109
dave.jenkins@arkona.com

                  ARKONA REPORTS RECORD FIRST QUARTER REVENUES

Salt Lake City, Utah - August 18, 2004 - ARKONA Inc. (ARKN), the emerging leader
and the pioneer in web-enabled  dealer  management  solutions for the automobile
and powersports  dealerships,  today announced record financial  results for the
three-month period ended June 30th 2004.

The company  reported  total revenue of $1,800,203  for the  three-month  period
ended June 30,  2004 as  compared  to revenue  for the same  period last year of
$1,103,242. This represents an increase in revenue of 63%. The company announced
net income of  $1,970,570  compared to $130,936  for the same period a year ago.
The net income for the current quarter includes  $1,764,400  attributable to the
recognition of a tax benefit.

"This was a very solid  quarter.  We are  particularly  encouraged by the strong
interest in our business and ASP delivery  model,  as well as steady progress in
bringing on new franchise dealers," said Alan Rudd, chairman and chief executive
officer.  "We  continue  to  focus  on  top-line  growth  and  customer  support
efficiencies  in order to optimize  profit  margins and create real  shareholder
value."

About ARKONA Inc.

ARKONA  was the  first  to  offer a true  Application  Services  Provider  (ASP)
solution  for the  automotive  industry and  continues to be a market  leader in
providing  innovative  e-business  solutions  for  automobile  dealers  A public
company,  ARKONA was founded in 1996 and trades under the symbol ARKN.  For more
information visit ARKONA's Web site at www.arkona.com.

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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.  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.