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Revenue-driven business models contribute to growth of technology sector SAN JOSE, Calif., Oct. 23 /PRNewswire/ -- SIRIUS Satellite Radio Inc. (NASDAQ:SIRI) was named the fastest growing technology company in North America, topping the 2007 Deloitte Technology Fast 500 ranking of the fastest growing technology, media, telecommunications and life sciences companies in North America. The award is based on percentage revenue growth over five years (fiscal years 2002-2006). SIRIUS reported a revenue growth rate over five years of 79,060 percent, moving from revenues of $805,000 in 2002 to $637,235,000 in 2006. Based in New York City, SIRIUS (http://www.sirius.com/) is a publicly held provider of satellite radio services. The company delivers more than 130 channels of the "Best Radio on Radio," including 68 channels of 100 percent commercial-free music and 65 channels of sports, news, talk, entertainment, traffic, weather and data services. This is its first appearance on the Fast 500 ranking. "We congratulate SIRIUS Satellite Radio and all of our Fast 500 winners on their tremendous growth during a time when globalization is creating an extremely competitive environment," said Phil Asmundson, vice chairman, U.S., Technology, Media and Telecommunications, Deloitte & Touche USA LLP. "Numerous technology advances, the ubiquitous digitization of data, borderless enterprises, growth in connectivity and faster adoption rates are creating new opportunities for Fast 500 winners to challenge old business models with original ideas." The Top Five In addition to Number 1-ranked SIRIUS Satellite Radio Inc., the top five Fast 500 winners include: -- Number 2 - SkyBitz Inc., a Sterling, Va.-based privately held communications/networking company, came in second on the 2007 Fast 500 listing. SkyBitz (http://www.skybitz.com/), a real-time tracking and information management solutions company, reported revenues of $26,673,000 in 2006, a leap of 40,314 percent from 2002 revenues of $66,000. This is its first appearance on the Fast 500 ranking. -- Number 3 - iTech US Inc., a privately held software company based in South Burlington, Vt., came in third on the 2007 Fast 500 listing. iTech US (http://www.itechus.com/), provider of IT services and e-business operations, reported revenues of $28,434,000 in 2006, a leap of 39,392 percent from 2002 revenues of $72,000. This is its first appearance on the Fast 500 ranking. -- Number 4 - First Solar Inc. (NASDAQ:FSLR), a Phoenix-based publicly held semiconductor company, came in fourth on the 2007 Fast 500 listing. First Solar (http://www.firstsolar.com/), which specializes in renewable power generation, reported revenues of $134,974,000 in 2006, a leap of 27,446 percent from 2002 revenues of $490,000. This is its first appearance on the Fast 500 ranking. -- Number 5 - ISTS Worldwide Inc., a Fremont, Calif.-based privately held software company, came in fifth on the 2007 Fast 500 listing. ISTS Worldwide (http://www.istsinc.com/), a retail and payment technology-focused custom development, consulting and systems integration services firm, reported revenues of $10,064,000 in 2006, a leap of 19,254 percent from 2002 revenues of $52,000. This is its first appearance on the Fast 500 ranking. "The fast-paced growth of this year's Fast 500 winners indicates that they are nimble and highly innovative," said Asmundson. "These are key success factors in such a competitive environment." Fast-Growing Billion-Dollar Companies There are a steadily growing number of billion-dollar-plus companies on the 2007 Fast 500 list. This year's Fast 500 has 16 companies that reported more than $1 billion in revenues in 2006, up from 13 companies last year and 11 companies in 2005. "Capital-efficient, extended enterprise business models are fueling larger, fast-growth companies," said Asmundson. "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." With the list's highest 2006 revenues of $26.5 billion AstraZeneca Pharmaceuticals LP, a privately held biotechnology/pharmaceutical company based in Wilmington, Del., makes its first appearance on the Fast 500 ranking. Google Inc. (NASDAQ:GOOG) of Mountain View, Calif., marks its fourth consecutive appearance on the Fast 500 list this year with 2006 revenues of $10.6 billion. Fastest Growing Companies Are Private The proportion of private vs. public companies that make up the fastest growing businesses in the 2007 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 Fast 500 list are privately held organizations. 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, with many opting for the M&A route instead of the traditional IPO path. "The average lifecycle for a technology-based business to go from start-up to IPO in 2002 was two to three years, whereas in 2007, the average is approximately seven years," said Asmundson. "This is because the dot-coms 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 healthier." Technology World Is Not Flat The traditional technology hotspots in California and the Northeast constituted a growing share of the Fast 500, while other regions saw a general decline. Silicon Valley and Silicon Alley's ecosystems of innovation, academia, venture capital and skilled employees are proving difficult to replicate in other regions. Software Is the Leading Technology Sector Software companies providing solutions for a number of sectors - biotech, retail and supply chain, to name a few - constituted 37 percent of the Fast 500 companies. The continued strength of this 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. It should be noted, however, that software companies comprise roughly one-third of the overall technology market, so the numbers are fairly consistent. Repeating the Feat - Exceptional Performers The bar is raised each year a company makes the Fast 500, so repeat winners are truly delivering exceptional growth. Five of last year's Top 10 companies made the 2007 Fast 500 rankings: -- Number 17 Litle & Co., a private communications/networking company based in Lowell, Mass. It ranked Number 3 in 2006. -- Number 21 NewMarket Technology Inc. (OTC:NMKT) (BULLETIN BOARD: NMKT) , a communications/networking company based in Dallas, Texas. It ranked Number 5 in 2006. -- Number 235 DragonWave Inc. (TSX/AIM: DWI), a communications/networking company based in Ontario, Canada. It ranked Number 7 in 2006. -- Number 55 I-trax Inc. (AMEX:DMX), a software company based in Chadds Ford, Penn. It ranked Number 8 in 2006. -- Number 33 Imaging Dynamics Company Ltd. (TSX: IDL), a computers/peripherals company based in Calgary, Canada. It ranked Number 9 in 2006. Remarkably, 10 companies returned to the Fast 500 for seven or more years: -- 3t Systems, a private software company based in Denver. -- Celgene Corporation (NASDAQ:CELG), a biotechnology/pharmaceutical company based in Summit, N.J. -- Gilead Sciences Inc. (NASDAQ:GILD), a biotechnology/pharmaceutical company based in Foster City, Calif. -- j2 Global Communications Inc. (NASDAQ:JCOM), a communications/networking company based in Los Angeles. -- Network Engines Inc. (NASDAQ:NENG), a software company based in Canton, Mass. -- OmniVision Technologies Inc. (NASDAQ:OVTI), a semiconductor company based in Sunnyvale, Calif. -- Open Solutions Inc. (NASDAQ:OPEN), a software company based in Glastonbury, Conn. -- Research In Motion (Nasdaq: RIMM; TSX: RIM), a communications/networking company based in Ontario, Canada. -- Silicon Image Inc. (NASDAQ:SIMG) a semiconductor company based in Sunnyvale, Calif. -- United Therapeutics Corporation (NASDAQ:UTHR), a biotechnology/pharmaceutical company based in Silver Spring, Md. Rising Stars - 25 Fast-Growth Companies Less Than Five Years Old As an accompaniment to the Fast 500, Deloitte also honors 20 "Rising Star" companies. These fast-growing young companies must have been in business a minimum of three years but less than five years. They are selected based on percentage revenue growth over three years, from fiscal years 2004-2006. Deloitte's Top 3 "Rising Stars" for 2007 are: -- Number 1 - oDesk Corporation, a privately held Internet company based in Menlo Park, Calif., with 4,573 percent growth over three years. -- Number 2 - AdBrite Inc., a privately held Internet company based in San Francisco, with 2,741 percent growth over three years. -- Number 3 - Fortify Software Inc., a privately held software company based in Palo Alto, Calif., with 1,737 percent growth over three years. Qualifying Criteria The Fast 500 ranks the fastest growing technology, media, telecommunications and life sciences companies in North America. It is compiled from Deloitte's 16 regional North American Fast 50 programs, nominations submitted directly to the Fast 500, and public company database research. Winners are selected based on percentage of fiscal year revenue growth from 2002 to 2006. To be considered, Fast 500 and Fast 50 entrants must have met the following criteria: -- Must 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. -- Base-year operating revenues must be at least $50,000 USD or $75,000 CD, and current-year operating revenues must be at least $5 million USD or CD. Companies are required to submit tax returns or audited financial statements with their submitted nominations to complete their eligibility. -- 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). Deloitte selects 20 fast growing young companies as "Rising Stars." To qualify as a Rising Star, entrants must have been in business three or four years. Rankings are based on companies' percentage fiscal year revenue growth over three years (2002-2006). Other qualifications are the same. About Deloitte 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 or affiliates and not by the Deloitte Touche Tohmatsu Verein. Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu. In the United States, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche. USA LLP Note: For a complete list of the 2007 Deloitte Technology Fast 500, visit http://www.fast500.com/. All names are trademarks or registered trademarks of their respective companies and are used for information purposes only. The Deloitte Technology Fast 500 contains general information only, and Deloitte is not, by means of this program, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. The Technology Fast 500 is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect you or your business. Past performance is not necessarily indicative of future results. In addition, prediction of future events is inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results to vary materially. Before making any decision or taking any action that may affect you or your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person or entity that relies on this program. DATASOURCE: Deloitte CONTACT: Dana O'Neill of Hill and Knowlton, +1-415-281-7134, or mobile, +1-415-359-6647, or ; or Teri Bruno of TBPR, +1-714-536-8407, or mobile, +1-714-801-1687, or Web site: http://www.deloitte.com/us http://www.fast500.com/ http://www.sirius.com/ http://www.skybitz.com/ http://www.itechus.com/ http://www.firstsolar.com/ http://www.istsinc.com/

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