Toronto, October 19, 2006 — Canadian technology companies have outpaced their American counterparts with an average 3,876% five year revenue growth (vs. U.S. 1,927%  growth), with half of North America's 10 fastest-growing technology companies based in Canada, according to the Deloitte Fast 500 ranking released today. The Fast 500 is an annual award program ranking the fastest-growing technology, media and telecommunications companies based on five year average revenue growth (2001-2005). 

This is the first time since the program's inception nine years ago that Canada has five companies in the Top 10 ranking. Furthermore, this year, 56 Canadian companies rank among the 500 fastest-growing technology companies in North America, compared to 53 companies in 2005.

"Canada is now the second-largest tech hub, following the Silicon Valley, accounting for half of North America's top 10 fastest-growing technology companies. Canada's competitive advantage is partly attributable to its loyal and highly skilled workforce, attractive tax incentives encouraging R&D, and is supported by longer-serving management teams," says John Ruffolo, National Leader for Deloitte's Technology, Media and Telecommunication practice. "Canadian companies boast the highest revenue growth, playing in the world's largest and most competitive market arena. These outstanding achievements demonstrate the incredible business muscle and entrepreneurial spirit that resides within the local tech industry, and the ability of these winning companies to transform technology innovation into business success."

Canada's Top Five Fast 500

• Vancouver-based, Westport Innovations Inc., which develops clean-technology engines, ranks as the second-fastest growing company for 2006 in North America, with a revenue growth of 42,945%.
• Airborne Entertainment Inc., a Montréal-based communications company ranks fourth overall (33,328%).
• Angiotech Pharmaceuticals Inc., a biotechnology company which operates out of Vancouver, ranks sixth on the Fast 500 (21,468%).
• DragonWave Inc., a leading innovator of high-capacity broadband wireless networking systems based in Ottawa, Ontario, ranks seventh (18,969%).
• Imaging Dynamics Company Ltd. of Calgary, which develops digital radiography products, ranks ninth with 17,949% average revenue growth.

High growth hubs
Within Canada, Ontario has the highest number of companies on the Fast 500 with 21 winners — 13 in the Greater Toronto Area, five in Ottawa and three in Southwestern Ontario. Ontario is followed by Québec with 13 companies, British Columbia with 12, Alberta with six recipients, two in Manitoba and one each in Newfoundland & Labrador and Prince Edward Island.

Sub-sector leadership
Canada also leads the pack as a software and biotech hotspot with the highest proportionate number of companies from these sub-sectors on the Fast 500 ranking. Forty-three percent and 23% of Canadian recipients operate within the software and biotech sub-sectors, respectively. This compares to 36% of software and only 15% of biotech companies overall on the Fast 500.

"Having a powerful representation of Canadian software and biotech companies on the Fast 500 provides a further indication of the prominent role Canada plays in leading these industries on a global scale," adds Ruffolo. "This accomplishment is driven by the winners' strong intellectual property, their ability to commercialize these ideas, and to do it better than the competition."

About Deloitte 2006 Technology Fast 500
Compiled from Deloitte's 16 regional North American Fast 50 programs, the Fast 500 ranks the fastest-growing technology, media, telecommunications and life sciences companies, based on percentage revenue growth from 2001 to 2005. To qualify, companies must be headquartered in North America, have been in business a minimum of five years, have revenues of at least USD $50,000 USD or $75,000 and current-year operating revenues must be at least $5 million (U.S. or Canadian dollars) and own proprietary intellectual property or proprietary technology that contributes significantly to the company's operating revenues.

About Deloitte
Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 6,200 people in 50 offices. Deloitte operates in Québec as Samson Bélair/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.

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