Arkados Powers Upcoming Renovia Series from NuVo Technologies

-- Targeting the retrofit market, and using the home's existing A/C wiring to distribute music and metadata, the groundbreaking multi-room audio system is previewed at CEDIA EXPO 2008 --

Piscataway NJ September 3, 2008 - Arkados (OTCBB: AKDS) is pleased to announce its involvement with multi-room audio manufacturer NuVo Technologies. Arkados is providing a silicon and software solution that is embedded into the components of NuVo's new Renovia multi-room audio system. A prototype of the Renovia system will be unveiled at CEDIA EXPO 2008 in Denver, Colorado, September 4 -7, in booth 240.

Most of today's multi-room audio systems deliver music throughout a home over speaker wire and Cat 5 cable. In existing homes, installers must cut holes in walls to pull this wire and cable. As a result, the retrofit market is a challenge for multi-room audio installers. The upcoming Renovia system, however, will break new ground by using the electrical wiring already inside the walls of a home to distribute music and metadata to every room.

"Renovia, which uses HomePlug® powerline technology to deliver fully digital music between components, will reduce our dealers' installation times significantly, allowing them to take on more jobs and to serve the retrofit market like they never could before with a clean, non-disruptive solution," says NuVo Chief Technology Officer Rick Kukulies. "The Arkados Direct-to-Speaker solutions enable us to tap into a home's electrical system so that we can offer our multi-zone playback in a precisely synchronized manner. Arkados' advanced features are unique in the marketplace, and offer significant advantages over wireless solutions for the transmission of both sound and data in terms of range, reliability and consistency."

"We are delighted to work with NuVo," said Oleg Logvinov, president and Chief Executive Officer of Arkados. "It is very gratifying to see that the effort we invested into the development of these technologies has been transformed into new and innovative products addressing the market for multi-room audio systems."

NuVo's Renovia system, which is expected to ship in the first quarter of 2009, enables users to view and control multiple audio sources from control pads in each room or remote controls that can roam from room to room.

"The decline in new housing construction is creating more demand for digital systems that can easily be installed in existing homes," said Kukulies. "With Arkados' help, we will enable our dealers to make multi-room audio available to a much wider audience than ever before."

About NuVo Technologies
Based in Hebron, Ky., just outside of Cincinnati, NuVo Technologies is an innovator in the engineering, manufacture and distribution of multi-room digital audio distribution systems. NuVo focuses just as much energy on its products' value and ease of use as it does on their quality, design, energy efficiency and engineering, striving for the highest levels in all aspects. NuVo believes the music-enabled home is something that all consumers can achieve and enjoy. Its products can make it happen. Visit NuVo's comprehensive website at www.nuvotechnologies.com.

Press Contact: Caster Communications, Inc. at 401.792.7080
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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 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, 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.