DELOITTE & TOUCHE

DELOITTE & TOUCHE

October 23, 2007 08:00 ET

New Canadian Technology Clusters Emerge as 42 Companies Rank in the 2007 Deloitte Technology Fast 500

Averaging a revenue growth rate of 984% over five years, many of the Canadian winners hail from non-traditional technology hotspots

TORONTO, ONTARIO--(Marketwire - Oct. 23, 2007) - A regionally diverse list of rapidly-growing Canadian technology companies is featured today in the 2007 Deloitte Technology Fast 500, a ranking of the fastest growing North American technology, media, telecommunications and life sciences companies, based on percentage revenue growth over five years.

U.S.-based SIRIUS Satellite Radio Inc. (NASDAQ:SIRI) was ranked the fastest growing North American technology company with revenue growth of 79,060% over five years. Based in New York City, SIRIUS is a provider of satellite radio services whose revenues grew from US$805,000 in 2002 to US$637.2 million in 2006. For a complete list of the 2007 Deloitte Technology Fast 500, visit www.fast500.com.

More than a third of the 42 Canadian companies listed in this year's rankings hail from traditionally strong technology clusters in the Greater Toronto Area, Ottawa, and Southwestern Ontario, with 17 Ontario-based companies accounting for 40% of the Canadian contingent. In addition, emerging software hotspots such as Montreal, the Greater Vancouver Area and Calgary propelled nine, eight and five companies, respectively, onto the list. Manitoba, Prince Edward Island and Newfoundland added one each.

"It's critical to see Canadian technology clusters emerging from coast-to-coast during a time when globalization is creating an extremely competitive environment," said John Ruffolo, National Leader, Technology, Media & Telecommunications Industry Group, Deloitte. "Technology is playing an increasingly important role in economies around the globe, and it's important that we continue to support the growth of these clusters through investment and a supportive tax structure."

In contrast, traditional U.S. technology hotspots in California and the Northeast constituted a growing share of the Deloitte Technology Fast 500. However, many other regions saw a general decline, as the ecosystems of innovation, academia, venture capital and skilled employees in both Silicon Valley and Silicon Alley are proving difficult to replicate in other regions.

The top five-ranked Canadian companies

The five fastest growing Canadian companies ranked in the 2007 Deloitte Technology Fast 500 are:

- #26 - ViXS Systems Inc., (revenue growth of 6,472%), is a Toronto-based company that designs specialized semiconductors, System-on-Chips (SOCs)used for video processing of advanced CODECs for DTV, multimedia PCs, Blu-ray/HD-DVD players, set-top boxes, and home media centers.

- #33 - Imaging Dynamics, (4,943% growth), from Calgary, Alberta, is a medical technology company and innovative force in the fast-growing field of digital radiography technology.

- #66 - Rutter Inc., (2,478% growth), from St. John's, Newfoundland is a global enterprise providing innovative technologies and engineering solutions that improve the efficiency and safety of operating assets in marine, transportation, oil and gas and other key sectors. (TSX:RUT)

- #90 - WebTech Wireless Inc., (1,888% growth), based in Burnaby, B.C., is a global Telematics and location-based services provider that delivers turnkey wireless solutions that include automatic vehicle location, mapping, reporting, vehicle diagnostics, driver status, in-vehicle telemetry and messaging. (TSX:WEW)

- #104 - RuggedCom Inc., (1,601% growth), based in Woodbridge, Ontario is a provider of rugged communications networking solutions designed for mission-critical applications in harsh environments.

"Canadian technology companies have some of the highest revenue growth rates in North America, while playing in some of the world's largest, most competitive and exciting market sectors," said Deloitte's Ruffolo. "To finish in or near the top 100 on the Deloitte Technology Fast 500 ranking is testament to the business acumen and entrepreneurial spirit that fuels these companies and the Canadian technology industry."

Software remains the leading technology sector

Software companies that provide solutions for a number of sectors - biotechnology, retail and supply chain, to name a few - constituted 37% of the Deloitte Technology Fast 500 companies. In Canada, more than half (23 of the 42 ranked companies) are in software, followed by just over a quarter (11 companies) in communications/networking, seven in computers/peripherals, and one in technology instrumentation.

Ruffolo explains the continued strength of the software sub-sector can be attributed to the growing importance of content, as well as software companies' inherent capital efficiency advantages in areas such as infrastructure and distribution.

Growing number of billion-dollar technology companies

There are a growing number of billion-dollar companies on the 2007 Deloitte Technology Fast 500. This year's ranking features 16 companies with more than US$1 billion in revenues in 2006, up from 13 companies last year and 11 companies in 2005. Research in Motion is Canada's only billion dollar company on the list.

"Capital-efficient, extended enterprise business models are fueling larger, fast-growth companies," said Ruffolo. "Today's technology businesses are more service-oriented, leverage-transparent partnerships and embrace outsourcing, all of which can reduce the time and capital previously required to scale. These strategies are enabled by the Internet, which also allows companies to access new channels and more rapidly access global markets."

North America's fastest growing technology companies are private

The proportion of private versus public companies that make up the fastest growing companies in the 2007 Deloitte Technology Fast 500 has completely reversed itself from 2002, with private companies now dominating the top 20 slots. In fact, eight of the top 10 companies in the 2007 list are privately held.

This trend can be attributed to existing market conditions causing technology companies to remain private for much longer than in the past. As a result, they are experiencing their greatest growth while still privately held, opting for the merger and acquisition route instead of the traditional initial public offering path.

Of Canada's 42 ranked companies, the split between private and public is nearly even, with 22 private, and 20 public.

"The average lifecycle for a technology-based business to go from start-up to IPO in 2002 was two to three years. In 2007, the average is around seven years," said Ruffolo. "This is primarily because dotcoms were concept-driven, while today's technology companies are resource-driven. As a result, businesses are taking more time to mature, and the technology sector as a whole is much healthier."



42 Canadian companies ranked in the 2007 Deloitte Technology Fast 500

---------------------------------------------------------------------------
2007
Rank Company Name City Prov Primary Industry 5yr%
---------------------------------------------------------------------------
26 ViXS Systems Inc. Toronto ON Computers/Peripherals 6,472%
---------------------------------------------------------------------------
33 Imaging Dynamics Calgary AB Computers/Peripherals 4,943%
---------------------------------------------------------------------------
66 Rutter Inc. St. John's NL Computers/Peripherals 2,478%
---------------------------------------------------------------------------
WebTech Wireless Communications/
90 Inc. Burnaby BC Networking 1,888%
---------------------------------------------------------------------------
Communications/
104 RuggedCom Inc. Woodbridge ON Networking 1,601%
---------------------------------------------------------------------------
108 Vision Critical Vancouver BC Software 1,586%
---------------------------------------------------------------------------
Redline
Communications Communications/
122 Inc. Markham ON Networking 1,417%
---------------------------------------------------------------------------
133 Solium Capital Calgary AB Software 1,248%
---------------------------------------------------------------------------
Dyaptive Systems Communications/
135 Inc. Vancouver BC Networking 1,195%
---------------------------------------------------------------------------
Cogsdale Charlotte-
147 Corporation town PE Software 1,112%
---------------------------------------------------------------------------
Tranzeo Wireless Pitt Communications/
153 Technologies Inc. Meadows BC Networking 1,072%
---------------------------------------------------------------------------
178 Radialpoint Montreal QC Software 911%
---------------------------------------------------------------------------
Genetec Technology Saint-
180 Corp. Laurent QC Software 897%
---------------------------------------------------------------------------
197 CityXpress Corp. Vancouver BC Software 830%
---------------------------------------------------------------------------
QuestAir
214 Technologies Burnaby BC Sci/Tech Instrumentation 762%
---------------------------------------------------------------------------
218 Eloqua Toronto ON Software 747%
---------------------------------------------------------------------------
Grey Island Systems
International, Communications/
227 Inc. Toronto ON Networking 715%
---------------------------------------------------------------------------
March Networks
229 Corporation Kanata ON Computers/Peripherals 712%
---------------------------------------------------------------------------
Nstein Technologies
232 Inc. Montreal QC Software 693%
---------------------------------------------------------------------------
234 N-able Technologies Ottawa ON Software 686%
---------------------------------------------------------------------------
Communications/
235 DragonWave Inc. Kanata ON Networking 683%
---------------------------------------------------------------------------
Communications/
266 AirIQ Inc. Pickering ON Networking 586%
---------------------------------------------------------------------------
277 Truition Inc. Toronto ON Software 565%
---------------------------------------------------------------------------
Exposoft Solutions
291 Inc. Mississauga ON Software 532%
---------------------------------------------------------------------------
PointClickCare
(Wescom Solutions
303 Inc.) Mississauga ON Software 509%
---------------------------------------------------------------------------
Ascalade
Communications Communications/
307 Inc. Richmond BC Networking 503%
---------------------------------------------------------------------------
318 DTI SOFTWARE Montreal QC Software 476%
---------------------------------------------------------------------------
Evertz Microsystems
332 Limited Burlington ON Computers/Peripherals 444%
---------------------------------------------------------------------------
Digital Payment
333 Technologies Corp. Burnaby BC Software 443%
---------------------------------------------------------------------------
Communications/
336 Research In Motion Waterloo ON Networking 436%
---------------------------------------------------------------------------
342 Distech Controls Brossard QC Software 427%
---------------------------------------------------------------------------
345 Lyrtech Inc. Quebec City QC Computers/Peripherals 424%
---------------------------------------------------------------------------
353 Zedi Inc. Calgary AB Computers/Peripherals 417%
---------------------------------------------------------------------------
Artificial Mind &
369 Movement Montreal QC Software 385%
---------------------------------------------------------------------------
383 Oceanwide Inc. Montreal QC Software 370%
---------------------------------------------------------------------------
Chartwell
385 Technology Inc. Calgary AB Software 366%
---------------------------------------------------------------------------
421 Bridgewater Systems Ottawa ON Software 321%
---------------------------------------------------------------------------
Communications/
428 EION Wireless Ottawa ON Networking 316%
---------------------------------------------------------------------------
Frantic Films
429 Corporation Winnipeg MB Software 315%
---------------------------------------------------------------------------
WellPoint Systems
440 Inc. Calgary AB Software 305%
---------------------------------------------------------------------------
Dyadem Richmond
454 International Hill ON Software 290%
---------------------------------------------------------------------------
493 Averna Inc. Montreal QC Software 256%
---------------------------------------------------------------------------


About the Deloitte Technology Fast 500

The Deloitte Technology Fast 500 is an annual ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in the United States and Canada, based on percentage of revenue growth over five years. It is compiled from Deloitte's 16 regional North American Fast 50 programs.

Deloitte Technology Fast 500 and Fast 50 entrants must meet the following criteria:

- Own proprietary intellectual property or proprietary technology that contributes to a significant portion of the company's operating revenues, or devote a significant proportion of revenues to research and development of technology. Using other companies' technology or intellectual property in a unique way does not qualify.

- 2002 revenues must be at least US$50,000, and 2006 revenues must be at least US$5 million.

- Must be in business a minimum of five years.

- Must be headquartered within North America. Subsidiaries or divisions are not eligible (unless they have some public ownership and are separately traded).

For a complete list of the 2007 North American Deloitte Technology Fast 500 ranking, visit www.fast500.com.

About the Deloitte Technology Fast 50

This year marks the 10(th) anniversary of the Deloitte Technology Fast 50 program, which celebrates business growth, innovation and entrepreneurship. The program features four distinct categories including the Technology Fast 50 Ranking, Companies-to-Watch Awards (early-stage Canadian tech companies in business less than five years, with the potential to be a future Deloitte Technology Fast 50 candidate,) Leadership Awards (companies that demonstrate technological leadership in four industry subcategories: hardware/semiconductor, software, telecommunications/wireless and emerging technologies) and the Deloitte Technology Green 15 Awards (recognizing companies creating innovative and economically-viable intellectual property in the field of green technology). Program sponsors include Deloitte, Gowlings, GrowthWorks, CIBC World Markets, Stonewood Group, Behr & Associates, and CATAAlliance. For further information, visit www.fast50.ca or call 1-888-6FAST50.

About Deloitte

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,600 people in 56 offices. Deloitte operates in Qu?bec as Samson B?lair/Deloitte & Touche s.e.n.c.r.l. The firm is dedicated to helping its clients and its people excel. Deloitte is the Canadian member firm of Deloitte Touche Tohmatsu. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu," or other related names. Services are provided by the member firms or their subsidiaries and not by the Deloitte Touche Tohmatsu Verein.

Contact Information