Compugen Inc.

Compugen Inc.

March 18, 2009 08:00 ET

Compugen Closes Out 2008 with Record Sales

Revenue Up 19 Per Cent Across Range of IT Product and Service Offerings

TORONTO, ONTARIO--(Marketwire - March 18, 2009) - Compugen Inc., the largest privately owned Canadian IT solution and service provider, is pleased to announce its financial results for the year ended December 31, 2008.

Compugen closed out 2008 with $348M in sales, its highest revenue ever, capping a three-year period of significant annual growth. Last year's revenue grew 19% over 2007. This follows on from a 13% increase the previous year.

In announcing these results Compugen President and CEO Harry Zarek noted particularly strong growth in both the software and services lines of business, supported by continued steady growth in product sales.

"Our software business grew by over 50% last year and our services business grew by 32%," he said. "I'm naturally very pleased about the growth in these lines of business. I'm also thrilled to report that our Storage business grew 44% and our networking business was up over 50%. The acquisition of a significant number of new customers in the past year has also been an engine of growth. These customers are telling us that in difficult times they particularly value our stability, breadth of offerings and commitment to quality."

Two thousand and eight also saw significant expansion of Compugen's national presence, with a net increase of nearly 100 full-time staff.

"I'm very proud of the growth of our service business in Quebec, a renewed focus on the SMB market in Southwestern Ontario, and solid activity throughout Western Canada. The scope of our National Coverage is a consistent theme in my conversations with many of our larger customers who are looking for support for their own national IT infrastructure across multiple geographies," said Zarek.

The year 2008 also brought Compugen accolades for IT leadership, including international recognition from Microsoft as one of its worldwide partners of the year.

"Keeping with the theme of quality that is so important to our customers, I'm proud of the accolades Compugen has received over the past year, and in particular the recognition of Compugen by Microsoft as one of its worldwide partners of the year. This speaks to our depth and excellence across a broad range of IT disciplines," Mr. Zarek continued.

Notwithstanding the current economic climate, Compugen continues to target further expansion of its business in 2009.

"Our growth has been financed through profitability and we carry no long-term debt. We've done a good job planning to be viable for the long term through highs and lows of the business cycle," he continued and concluded, "While the current international economic picture may give everyone pause, it's important to remember that Canada's financial sector is among the strongest in the world and temporary downturns are good opportunities for redefining business processes to drive efficiency and cost reduction, and for refocusing IT investments on core areas such as upgrading management and information worker capabilities, enhancing customer service processes and enabling reliable, flexible infrastructure to support future expansion."

About Compugen

Compugen is Canada's largest privately-owned and operated IT solution and service provider. Founded in 1981 by its current President and CEO, Harry Zarek, Compugen provides practical, real-world solutions and a comprehensive customer-focused portfolio of support services. Delivering national coverage from 15 offices coast to coast, Compugen's experienced team of IT professionals helps mid-sized and large corporations and government agencies across Canada with enterprise-level solutions that optimize IT costs and leverage technology for better business results.

Compugen offers a complete design-build-run-maintain lifecycle suite of professional IT services and is a top-level partner in Canada for Cisco, Citrix, Hewlett-Packard, IBM, Lenovo, Microsoft, VMware and other technology leaders.

Complete information on Compugen IT infrastructure solutions and services can be found at www.compugen.com.

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