Hong Kong, December 6, 2007 – The Asia Pacific technology sector is buoyant with the fastest growing companies experiencing the highest levels of growth to date. Asia Pacific CEOs also reported record levels of confidence in business conditions, which they expect to continue for another two years, according to Deloitte’s Technology Fast 500 Asia Pacific ranking and its survey of the winning companies' CEOs.

The average revenue growth rate across all 500 fastest-growing technology companies in Asia Pacific reached 540 percent over the past three years, the highest point since the rankings were launched in 2002. Four Mainland Chinese companies made it into the top 10 list along with two companies each from Taiwan and Australia. Trina Solar Ltd., a Chinese solar energy equipment pioneer took the top ranking with a three-year growth rate of 27,542.27 percent. The survey showed a new trend in high environmental awareness as three-quarters of CEOs said they are undertaking green initiatives because it is "the right thing to do."

The region’s fastest-growing technology companies were profiled and recognized at the Deloitte Technology Fast 500 Asia Pacific 2007 Awards Ceremony on December 6 at the InterContinental Hotel in Hong Kong. Rankings of the fast-growing companies are based on the percentage of growth in fiscal year revenues over the past three years. Deloitte also released results of its Technology Fast 500 Asia Pacific 2007 CEO Survey, the firm’s annual comprehensive analysis of business trends among these successful companies, revealing the key concerns and expectations of regional CEOs.

Igal Brightman, global managing partner of Deloitte’s Technology, Media & Telecommunications (TMT) industry group, said: "The 2007 rankings and performances of Asia's fastest growing tech companies are outstanding – growth in the region is at its highest point since we started the rankings in 2002. The top five companies recorded growth rates ranging from 9,409 percent to 27,542 percent for the overall winner. The growth rate of the top five companies has more than doubled over figures of 2006."

“Six of the top 10 winners are from the Greater China region, showing the dynamic nature and vibrancy of the Greater China tech markets which are becoming increasingly integrated," commented Charles Yen, China national leader of Deloitte’s TMT group. "It’s worth noting that the winner, Trina Solar, is from the new energy sector, which designs and manufactures reliable and environmentally-friendly electric power solar modules. This indicates the significant opportunities for technological innovation that enhances sustainability and the environment. The favorable business conditions in China for tech companies, including the gradual opening up of the local financial and IT markets as well as the Chinese government’s supportive policies, have encouraged more Chinese technology firms to grow at an incredibly fast pace, which this year has resulted in a strong presence on our rankings.”

Key trends emerging from this year’s Deloitte Asia Pacific rankings are:

• The three-year average revenue growth for all 500 companies significantly increased from 399 percent in 2006 to a notable 540 percent in 2007, a 141 percent growth from last year’s figures. The record level surpasses the previous highpoint reached in 2005 (518 percent) and 285 percent in 2002, when the rankings started with 250 winners. (The field was subsequently expanded to 500 in 2004.) The current high growth is mirrored in Europe, Middle East and Africa (EMEA).
• Growth rates of the top five companies have more than doubled over figures of 2006, achieving growth rates ranging from 9,409 to 27,542 percent.
• Taiwan is home to the largest number of fast-growing companies in this year’s ranking (99 companies). India’s contribution of ranked companies grew from 54 in 2006 to 82 this year, indicating India’s emergence as a tech-acceleration nation.
• South Korea's representation declined by 18 percent to 82 companies though it still remains among the top 10. Japan and New Zealand increased their contribution of companies by 21 percent and 22 percent respectively, from the 2006 program.
• The top-performing sector in 2007 is software with 129 fast-growing software companies making the rankings. Semiconductor, components and electronics and the communications/networking sector are gradually catching up with 120 and 83 ranked companies respectively.

Top five companies

China holds its strong position with four companies in the top 10, including Trina Solar Ltd., Beijing Kaitone Information Technology Ltd., Shanghai Everstar Online Entertainment Co., Ltd. and Shanghai Winking Entertainment Ltd. Taiwan and Australia follow close behind with two companies each among the top 10. Sharing other places in the top 10 are companies from Japan and Korea.

India supplied the largest number of software companies by far (48 companies), followed by Japan. Taiwan contributed the greatest number (78 companies) of semiconductor, component and electronics companies. South Korea provided the largest number (19 companies) of communications/networking companies and Japan provided the most internet companies (30).

The Deloitte Technology Fast 500 ranking covers public and private companies across the Asia Pacific region, and is based on a three-year average percentage for revenue growth. The awards are researched and sponsored by the Deloitte Technology, Media & Telecommunications industry group.

Survey reveals confidence in further growth
Designed to gain insights to the formula of success, plans and challenges for the sector’s leadership, results of the Technology Fast 500 CEO survey clearly indicate confidence among Asia Pacific’s fast-growing company CEOs has reached a record high. Ninety percent of CEOs are either very or extremely confident of sustaining growth over the next two years. CEOs in Asia Pacific also indicate that they have chosen to focus inward on "organic growth" (50.2 percent) comprising product innovation, customization and the perfecting of new technologies, to maintain company growth in 2008.

"Asia Pacific CEOs have attained a tried and trusted recipe for unleashing potential and achieving ambitious growth targets. They are assisted by generally healthy economic conditions, an improved regulatory environment and governments having earmarked the technology sector as an economic growth engine," said Ian Thatcher, lead partner, Deloitte Corporate Finance Pty. Ltd., Australia.

"In order to maintain exceptional growth, more than half (53 percent) of the CEOs interviewed regard talent scouting, recruitment and retention as the key to success but view talent issues as a formidable challenge. Staff is increasingly mobile, the employment market is much more fluid, while recruitment and retention are costing organizations significant amounts. Some 31 percent of CEOs have concerns about increased labor costs and /or lack of access to skilled labor. As such, more than 80 percent of CEOs adopt different employee management strategies by looking beyond their borders for talent."

The survey also reports a rapid increase in the need to offshore. An overwhelming number of Asia Pacific CEOs (80.7 percent) believe it is critical or somewhat important to look overseas for talent, which is a significant jump from the 2006 survey (47.3 percent).  Currently, 18 percent of companies employ more than 15 percent of their workforce abroad. CEOs see this figure tripling within five years, which will form a significant structural challenge, driven by a mixture of a desire to be seen as a global company (53.3 percent), cost savings (20 percent) and shortage of skills at home (12.7 percent).

The drive to build global companies capable of competing on the world stage, domestic skills shortages and cost saving measures are driving offshoring. Key functions that require complex skills are in high demand—31.8 percent of R&D, technical and engineering and 20 percent of marketing research requirements are currently being offshored by Asia Pacific CEOs. However, going offshore creates a new set of issues—nearly 43 percent of responding CEOs said the most significant challenge is the management of remote sites, which requires appropriate supervision and improvement of management skills.

Another new trend identified in the survey is that nearly 80 percent of Asia Pacific CEOs believe that going green is "the right thing to do." Asia Pacific companies are contributing most of their green initiatives to energy conversation (40 percent) and waste reduction (33 percent). When compared with the survey results from EMEA, Asia Pacific CEOs are leading the field in waste reduction (33 percent versus EMEA at 11.6 percent) and the number of companies not undertaking any green programs (just seven percent versus EMEA at 30.7 percent).

“The winning company, a solar panel manufacturer, is an outstanding example of environmental sustainability and clean technology providing a successful business model. This can help improve confidence that respecting the environment is not only the right thing to do but actually makes good business sense for tech companies. With 78 percent of Asia Pacific CEOs acknowledging the need to implement a basic environmental conservation program, this is a promising trend and potential area for new business development,” said Mr. Thatcher.

"2007 has marked a stunning year for growth in Asia Pacific. Riding on the growth and momentum, Asia Pacific will continue as an investment and capital which is set to experience robust growth in 2008. It is heartening that CEOs in Asia Pacific share confidence in the sustainability of the current wave of growth," added Mr. Thatcher.

About the Deloitte Technology Fast 500 CEO Survey Overview
This report is a comprehensive analysis of the business trends and background statistics of the winning companies as well as a summary of the key concerns and expectations of sector CEOs. It can be downloaded from www.deloitte.com/fast500asiapac.

About Deloitte Technology Fast 500 Asia Pacific
The Deloitte Touche Tohmatsu (Deloitte) Technology Fast 500 Asia Pacific program is the region’s most objective industry-ranking standard to focus on the technology field. The Asia Pacific program was launched in 2002 to recognize the effort and dedication of the 500 fastest-growing technology companies in Asia Pacific and includes all areas of technology, from internet to biotechnology, from medical and scientific to computers/hardware. It includes both public and private companies. Details of the winning companies will be available at www.deloitte.com/fast500asiapac.

About Deloitte Technology, Media & Telecommunications
The DTT Global TMT industry group consists of the TMT practices organized in the various member firms of DTT and includes more than 6,000 member firm partners, directors and senior managers supported by thousands of other professionals dedicated to helping their clients evaluate complex issues, develop fresh approaches to problems and implement practical solutions. There are dedicated TMT member firm practices in nearly 45 countries and centers of excellence in the Americas, Asia Pacific and EMEA. DTT’s member firms serve nearly 90 percent of the TMT companies in the global Fortune 500. Clients of DTT’s member firms’ TMT practices include some of the world’s top software companies, computer manufacturers, wireless operators, satellite broadcasters, advertising agencies and semiconductor foundries – as well as leaders in publishing, telecommunications and peripheral equipment manufacturing.

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in over 140 countries. With access to the deep intellectual capital of approximately 150,000 people worldwide, Deloitte delivers services in four professional areas—audit, tax, consulting and financial advisory services—and serves more than 80 percent of the world's largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.

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