The spotlight is on easy-to-use audio distribution and home security solutions at one of the world's largest international electronics shows

Taipei, Taiwan R.O.C. - June 6, 2006 - Arkados Inc. (OTCBB: AKDS) is working with their customers to display a variety of prototype products at Computex Taipei 2006. The AI-1100 system-on-chip (SoC) incorporates HomePlug® technology, which enables a variety of digital devices to use a home's electrical wiring to send audio, data, even video streams throughout a home. Whole-house audio and digital security solutions that use the Arkados AI-1100 system-on-chip (SoC) can be viewed in the demonstration area of GigaFast Ethernet in Hall 1 1F, Booth A533.

"Because Arkados incorporated the HomePlug MAC/PHY, a powerful processor and so many other features directly into their chip, it became obvious that dozens of HomePlug products could be easily built with it," said Jay Cheng, president of GigaFast Inc. "As an ODM, it offers tremendous flexibility to deliver exactly what our customers demand, as the chip in itself is a platform for limitless digital home applications."

Arkados designed their AI-1100 chip to easily connect to audio interfaces, video DSPs, common networking and computing interfaces, and even LCDs and LEDs. Within the design of a security-in-a-box system, the Arkados AI-1100 processor supplies powerline communication capabilities, discovery and management middleware, and an Internet Protocol (IP) communications stack in a device that connects remote security cameras to any television in a home. The programmability of the Arkados chip makes it ideal for Internet Protocol TV (IPTV), surveillance, whole-house audio, and a host of other in-demand applications for the digital home.

"Our HomePlug-enabled reference designs demonstrate the versatility of SoCs from the Arkados ArkTIC family of solutions," said Oleg Logvinov, Arkados president and CEO. "The platform we have created can be rapidly adapted to many applications, including whole-house digital video recorder (DVR) and Internet Protocol TV (IPTV)."

Arkados Inc. is a founding member of the HomePlug Powerline Alliance.

About Arkados, Inc.
Arkados Inc., a wholly owned subsidiary of Arkados Group Inc. (OTCBB:AKDS), is a developer, manufacturer and supplier of system-on-chip semiconductors that are designed to create easy-to-use digital connectivity between entertainment and computing devices used by consumers. Arkados solutions will create a virtual, home-wide entertainment and information network that can enable digital data to be shared between stereos, radios, computers, speakers, mp3 players, televisions, cable and DSL modems, and a host of other devices. The company's chips are designed to permit its OEM customers to produce sophisticated, full-featured products with a lower production cost, faster time-to-market, and a high degree of programmability. Arkados is a major contributor to the new HomePlug AV specification and their chips conform to HomePlug Powerline Alliance standards. Arkados chips can be used for applications in the in-home network ("In-Home Network"), through the "last mile" powerline distribution network ("Broadband Powerline"), and throughout residential and corporate buildings ("In-building Network").

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.