Dutton Associates Announces Investment Opinion: Arkados Group Speculative Buy Rating In Update Coverage By Dutton Associates

ROSEVILLE, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of Arkados Group (OTCBB: AKDS) maintaining a Speculative Buy rating and a $.50 price target. The 9-page report by Dutton senior analyst David P. Soetebier, CFA, is available at www.duttonassociates.com as well as from First Call, Bloomberg Professional, Capital IQ, FactSet, Zacks, Reuters, Knobias, and other leading financial portals.

Arkados designs and sells integrated circuits (ICs) for high-speed communications over existing electrical wiring. An important market for these ICs is to enable the sharing of content among personal computers and other consumer electronics products in a building. There are also industrial markets such as “Smart-Grid” solutions for utility companies. This powerline communications is an attractive technology as it offers convenience versus other cable technologies (i.e., Ethernet, coaxial cable and telephone wiring LANs) because it uses the existing electrical wiring and outlets in a building to create the network. The need to run cables to get network capability can be quite costly. In-Stat estimates that a typical U.S. home may have an average of 40 to 50 electrical outlets, compared to an average of 3 to 5 coaxial cable outlets and as few as 2 to 3 telephone outlets. Arkados has a number of patents relating to the technology, and some of its customers are now shipping product incorporating its chips. An interesting new product distributes the audio output from an Apple (AAPL: NASDAQ) iPod to anywhere in a house. We believe that the Company’s revenues will accelerate as this and other products ship in volume. We do not believe that the market is fairly valuing the Company relative to its growth potential and the value of its technology. Our 12-month target is $0.50, a market capitalization of $13 million.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 12/21/2006. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.duttonassociates.com before investing.