Toronto, April 27, 2005 – North America’s fastest growing technology companies are back in hiring mode as the clouds of economic uncertainty have finally lifted, with an overwhelming majority (95%) of respondents planning to increase headcount. Furthermore, 40 per cent of respondents in the 2005 Technology Fast 500 CEO survey indicated plans to increase their workforce by at least one-quarter and up to double over the next year. These findings are drawn from a survey released today by the Technology, Media & Telecommunications (TMT) group of Deloitte. The survey of more than 150 Canadian and American CEOs of companies on the 2004 Deloitte Technology Fast 500, a ranking of the fastest growing technology companies in North America, also found that merely 2 per cent of them currently perceive the economy to be a concern, down significantly from 16 per cent last year.

Human Capital also plays an important role in contributing to the phenomenal revenue growth (4,109% on average) presented by the 2004 Fast 500, according to survey respondents. High-quality employees are cited as the most contributing factor to growth by one-quarter of respondents, followed by sound business strategy (21%) and unique products (13%). However, the hunt for high-quality employees also takes a toll. Finding, hiring and retaining qualified employees is considered by respondents to be their biggest operational challenge (27%) followed by developing strong sales and marketing strategies (21%).

“Unlike previous years, external factors such as economic instability, taxation and global terrorism are perceived as being less of a threat for Fast 500 CEOs this year,” said Garry Foster, national director, Technology, Media & Telecommunications group, Deloitte Canada. “With no external factors to sidetrack them, more tech CEOs will shift their focus and efforts inward to strengthen their companies and increase growth organically.”

The improved economic climate and the rosy outlook also affected respondents’ confidence levels. More than one-third of CEOs (36%) were “extremely confident” about their companies’ future growth. This represents a significant increase in confidence levels, compared to under one-quarter (21%) of CEOs who expressed extreme confidence only a year ago.

Other key findings:

• Internet and IP-related services are poised to enjoy the highest growth rate in the coming year according to one-third (30%) of respondents. Wireless communications and life sciences sectors that were high on the list last year, slid from 23% and 21% to only 11% and 9% respectively. Longer-term prospects for the Internet and IP sector are also optimistic, with 21 per cent of CEOs choosing it as the industry sector with the greatest potential for growth over the next three years, up from 19 per cent in 2004.
• While North America continues to be seen as the most lucrative market for growth opportunities over the next five years (61%), Asia Pacific (20%) and EMEA (16%) are increasingly considered potential growth destinations.
• Limited access to capital (21%) and increased competition from China and India (15%) are cited as the two biggest threats to growth in the tech sector over the next 12 months.
• On a personal note – “Developing leaders and delegating responsibility” topped the list of personal challenges for this year’s CEOs with 31 per cent. Also, while two-thirds of CEOs still consider executive compensation to be in-line with executive performance for the overall marketplace, when asked about their own compensation packages, more this year than previous years believe it reflects their performance (20% last year vs. 28% this year).

About the Technology Fast 500 CEO survey and program
The Technology Fast 500 CEO Survey is an annual poll administered to CEOs of companies ranked on Deloitte’s Technology Fast 500. Nearly 150 CEOs responded to the 2005 survey, which was conducted in the first quarter of 2005. The Deloitte Technology Fast 500 is an annual ranking of the fastest growing technology companies in North America based on percentage revenue growth over five years. The 2005 Technology Fast 500 ranking will be announced in October 2005. For more information or to nominate a company for the Technology Fast 500, visit www.fast500.com.

About Deloitte
Deloitte, Canada's leading professional services firm, provides audit, tax, financial advisory services and consulting through more than 6,100 people in more than 47 offices. Deloitte & Touche LLP 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 only professional services firm to be named to the Globe and Mail's Report on Business Magazine annual ranking of Canada's top employers for two consecutive years: 35 Best Companies to Work for in Canada in 2001 and 50 Best Companies to Work for in Canada in 2002. "Deloitte" refers to Deloitte & Touche LLP and affiliated entities. Deloitte is the Canadian member firm of Deloitte Touche Tohmatsu. Deloitte Touche Tohmatsu is a Swiss Verein (association), and, as such, 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 name "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu" or other related names. The services described herein are provided by the Canadian member firm and not by the Deloitte Touche Tohmatsu Verein.