Arkados' HomePlug AV System-on-Chip Designed to Interoperate with TIA-1113 and IEEE 1901 Standards

- With the recent confirmation of the IEEE P1901 baseline standard, Arkados' upcoming chip is poised to deliver on promise of interoperability -

PISCATAWAY, NJ January 6, 2009 - Arkados® (OTCBB:AKDS), a leading innovator and supplier of system-on-chip solutions for powerline networking, announces that its upcoming HomePlug® AV based AI-2100 System-on-Chip (SoC) will likely be the only chip available that will be interoperable with three established powerline standards: TIA-1113/HomePlug 1.0, HomePlug AV, and the recently confirmed IEEE 1901 Baseline Standard.

On December 18th, the IEEE P1901 workgroup confirmed the proposal that contains HomePlug technology as its baseline standard for connecting high-speed communication devices via electric power lines. As a charter member of the international committee, Arkados anticipated the need to support multiple markets and standards in its semiconductor product line. In addition, Arkados' new chips will be designed to be interoperable with the baseline of the IEEE 1901 Standard. This strategy ensures that Arkados customers have a clear product path as standards are developed.

Arkados' new device, which will be developed and manufactured together with STMicroelectronics, will set a new benchmark for integration, cost, performance, and features. It is targeted at the growing markets for digital communications such as HDTV distribution, digital set-top boxes, IPTV, whole-house audio, networked digital picture frames, surveillance systems, and also industrial and commercial uses -- specifically the market segments of Smart Grid and Green Energy applications.

"The next networking frontier is the home - and the ubiquitous power line is its Holy Grail," says Steve Rago, Principal analyst and author for iSuppli's new report 'Home Networking Technology's Killer Connection'. "Both the IEEE and the ITU are driving emerging power line standards. It currently appears that the IEEE, which includes HomePlug AV technology, may have the advantage due to the timing, available silicon, and its announced supporters, including STMicroelectronics and Arkados. In its report, iSuppli forecasts 210 million power line devices will ship during 2013, a CAGR of 76% over the next five years."

"Markets often experience significant growth once Standards are defined" said Oleg Logvinov, president and CEO of Arkados. "Our early investment into making our new chip interoperable with the established HomePlug specifications and the baseline for the IEEE 1901 standard gives our customers a seamless migration path from Homeplug 1.0/ TIA-1113, to HomePlug AV, and to the baseline of IEEE P1901."

"Broadband powerline networking has already been thriving, and many telcos have deployed solutions using it. But some providers have been waiting for more cohesiveness or consolidation, due to concerns about backward compatibility and co-existence," stated Principal Analyst for In-Stat, Joyce Putscher. "In-Stat's recent report, 'Global Powerline Networking: Growing in Spite of Economic Woes' goes on the record by forecasting healthy growth for 2009 through 2012. Growth will accelerate further with the implementation of international standards."

Arkados' new HomePlug AV-based SoC will contain an integrated AFE (analog front end), a wide variety of built-in interfaces, and a powerful ARM processor. It will offer support for the Inter PHY Communication Protocol (IPP) as defined by the IEEE P1901 Working Group, and which is scheduled to be included in the upcoming ITU-T standard. It will also offer full interoperability with the existing base of over 25 million HomePlug 1.0 and HomePlug AV chips in use today. Currently, no other company offers this.

About Arkados, Inc.
Arkados, "the HomePlug Applications Company," delivers a universal platform that enables 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® 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® and ArkTIC® are registered trademarks and Direct to Speaker is a trademark of Arkados Inc., a wholly owned subsidiary of the Arkados Group, Inc. HomePlug® is a registered trademark of the HomePlug Powerline Alliance, of which Arkados is a member. Other names and brands may be claimed as the property of others. More information can be found at

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, the company's ability to raise necessary financing, retention of key personnel, timely delivery of inventory from the company's contract manufacturers, timely product development, product acceptance, and the impact of competitive services and products, in addition to general economic risks and uncertainties.