Arkados Inc. Retains Porter, LeVay & Rose, Inc.

PISCATAWAY, N.J. -- Arkados, a HomePlug[R] Applications Company[TM] and a wholly owned subsidiary of Arkados Group, Inc. (OTC BB: AKDS), announced today it has retained New York-based Porter, LeVay & Rose as its investor relations counsel.

Oleg Logvinov, Arkados president and CEO, said, "We are pleased that Porter, LeVay & Rose will be representing Arkados to the investment community and to our shareholders. We have developed semiconductors and software that are designed to drive connected-home applications for new consumer electronic products. This investment story demands accurate and timely communication with Wall Street. Porter, LeVay & Rose has 35 years of investor relations experience, which includes the high-tech arena, and we plan to tap into the firm's knowledge to help us achieve our goals."

Michael J. Porter, president of Porter, LeVay & Rose, said, "We believe that the Arkados system-on-chip can form the brains of a great many new products. Imagine that you enter your house, unpack your new flat-panel TV, and when you plug it in to the power outlet, the TV automatically connects to the cable box, the DVD player, the Digital Video Recorder and the Home Theatre system, as well as to the Internet - and you can just sit down and start enjoying the programs you love. That scenario describes what Arkados and the HomePlug Powerline Alliance, the organization that the team at Arkados co-founded in the year 2000, are working to achieve."

He added, "The growing importance of the HomePlug Powerline Alliance is likely to help boost Arkados' profile. Arkados has worked with the alliance to establish worldwide standards for the powerline communications industry. This week, Texas Instruments, LG Electronics and TCL, China's huge TV maker, joined the alliance's board of directors. Clearly, the HomePlug technology is coming of age, and Arkados has helped make that happen."

Porter also said, "Arkados was recently awarded a patent for a technique that overcomes the inherent limitations of carrying higher frequency signals over a home's power lines and uses the available bandwidth in the most efficient way. This technique maximizes the range of audio and video services that can be offered to the consumer."

He concluded, "Now that the Company has begun delivering its system-on-chip solutions to customers, the transition from a research and development entity to a commercial enterprise is well underway. I believe that Porter, LeVay and Rose's experience in the high-tech investment field will serve Arkados well. We look forward to telling the Arkados investment story to Wall Street."

About Arkados, Inc.

Arkados, the HomePlug[R] Applications Company[TM], delivers a universal platform that enables the effortless networking of home entertainment and computer devices using standard electricity lines. The company's system-on-chip solutions are uniquely designed to drive a wide variety of powerline-enabled consumer electronics and home computing products, such as stereos, radios, speakers, MP3 players, computers, televisions, gaming consoles, security cameras and cable and DSL modems. Arkados customers can bring numerous sophisticated, full-featured products to market faster at a lower overall development cost using a single platform: the company's versatile and programmable ArkTIC[TM] platform. Arkados solutions leverage the benefits of HomePlug Powerline Alliance specifications, and can also be used for in-building and to-the-home (BPL) applications. Arkados Inc. is a wholly owned subsidiary of the Arkados Group, Inc. (OTC BB: AKDS). More information can be found at http://www.arkados.com.

This release includes "forward-looking statements"' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company and the risks and uncertainties detailed from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, and the impact of competitive services and pricing and general economic risks and uncertainties.