ARKADOS INC. EXPANDS OPERATIONS INTO TAIWAN THROUGH DISTRIBUTION AGREEMENT WITH JEDCOM LTD. OF TAIPEI

Incorporating the Arkados AI-1100 chip, the internet radio application streams music direct-to-speaker with no computer required

PISCATAWAY, N.J., June 14, 2006 -- Arkados Inc., a wholly owned subsidiary of Arkados Group Inc. (OTCBB:AKDS), today announced that it has signed an agreement with Jedcom Ltd. thus expanding into the APAC region. Jedcom will now be promoting Arkados' innovative ArkTIC SoC solution for HomePlug Powerline communications. This further illustrates Arkados' commitment to its world-wide customers by extending their sales and support functions with Jedcom covering Taiwan and Shenzhen, China.

"Jedcom Ltd. is a specialized semiconductor representative with considerable experience in the HomePlug market," stated Steve Woodman, Vice President of Sales and Business Development for Arkados. "Jedcom's Field Application Engineers have extensive experience with HomePlug-based products. This complements highly skilled engineering team at Arkados with an additional resource that can provide customers with the technical support resources required to develop their systems and to meet their time-to-market goals. We believe Jedcom's expertise in HomePlug applications and technically focused sales teams should further accelerate our revenue growth."

"Jedcom is excited about this newly formed relationship with Arkados," said Jason Ko, Vice President of Sales for Jedcom. "HomePlug technology allows for efficient networking via electrical outlets, and Arkados system-on-chip solutions add features that enhance those products with in-demand features for the digital home. It is these innovative product solutions that have established Arkados as one of the leading companies in Powerline communications," concluded Mr. Ko.

More information is available at www.arkados.com.

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.