Fast 50 CE ranking results: Alternative telecom jumps to the lead of technology tigers

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Prague, Oct. 7, 2003 - Deloitte announced today results from its annual Fast 50 search for the fastest growing technology firms from countries in Central Europe. The winner of this year's competition is Aliatel with 4,846 % growth over the last five years. In the accompanying survey, almost half of the Fast 50 technology firms expressed their concerns over limited access to capital and identified sales and marketing as the major operational challenges.

Aliatel, an alternative telecom operator based in the Czech Republic, took the lead position in the Fast 50 ranking for 2003. Over the past five years, revenues from Aliatel's portfolio of voice, data, and Internet services have climbed by a phenomenal 4,846%. This growth is double the growth of any other firm appearing in this year's Fast 50.

Home.pl, the Polish Internet services provider, ranks second with a revenue growth rate of 2,280%. Rounding out the top five positions in the ranking are: Obchodni dum.cz, a Czech e-shop selling everything from automobiles to cameras (1,974%), P.U.P. SPIN, a focused provider of administrative and billing IT services in Poland (1,847%), and ICZ, a Czech systems integrator (1,436%).

“Despite the slow economy and limited access to funding, there are some stellar performers in the region,” said John Wilson, Central European Fast 50 Coordinator. “These are firms that have successfully brought excellent products to market at the right time with quality human resources. The range of these firms also shows that throughout the region, there is an array of firms that can transform an idea into reality.”

Qualification criteria was made more difficult this year. Firms in the main category now must have at least five years of operating history and a base year (1998) revenue of EURO 50,000 to qualify. Companies in the Central Europe Fast 50 also must have their firm headquarters in the region, eliminating most foreign-owned subsidiaries from participating in the contest.

To showcase younger firms, the Rising Stars category was created. These Rising Stars are firms that are quickly making a name for themselves in the Central European technology sphere. Rising Stars have been in existence between three and five years and meet the previous Fast 50 criteria of a three-year operating history and a minimum base revenue of EURO 30,000.

Topping the Rising Star list is Hoga.pl, a Polish Internet services provider as well as an e-shop. Its revenue grew by 1,727% during the comparison period. ZOOM International, a Czech-based developer of software security systems is second with revenue growth of 476%. Aaron Group, a Czech Internet services firm, is third with revenue growth of 446%. SOLVO Biotechnology, a Hungarian firm specializing in medical R&D on membrane transport proteins and multi-drug resistance in cancer, is in the fourth position (371%) and Merlin.com.pl, a Polish e-retailer is fifth (327%).

All-stars

Among the crown jewels of the Fast 50 competition belong the All-stars - firms with a consistent track record of revenue growth. To qualify as an All-star, the recognized firms have earned a Fast 50 ranking for the last three consecutive years.

“To call these firms All-stars is no exaggeration, given the tough economic climate in which they have managed to persistently excel,” said John Wilson.

The All-stars club includes the Czech companies TES Media, a leading cable TV operator, Internet Info, Internet publisher and consultancy, Logos, the software company, Fractal, e-business and online services consultancy, operating e-shop with airline tickets, Brain System, e-business software producer, the Hungarian firms ICON, IT infrastructure and security architecture designer, and Marketlink, call center solutions and CRP provider and the Latvian Lursoft IT which lists business data on the Internet.

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The search for the Fast 50 technology firms in Central Europe is part of the continuing effort by Deloitte, a global provider of professional services, to highlight emerging firms and identify the major problems and opportunities they face. The Fast 50 were drawn from an initial selection of over 10,000 firms with Deloitte personnel directly contacting the leading 80 candidates. This year's winners in the Fast 50 program included firms from seven countries in the region : the Czech Republic, Estonia, Hungary, Latvia, Poland, Slovakia, and Slovenia.

Fast 50 technology firms develop or manufacture proprietary technology or spend a significant amount of resources on research & development. Within Central Europe, half (52%) of the surveyed firms are directly active in the software sector, other Fast 50 firms are leaders in Internet, communications, computers, electronics, and scientific fields. Surveyed companies are ranked by their revenue growth over a set time period.

As part of the Fast 50 selection process, firms were polled as to the major factors supporting their growth as well as their major operational challenges and concerns. Over a third of the firms (36%) singled out product excellence as the major contributing factor to their firm's growth. Other major contributing factors are market timing (28%) and the high quality of their employees (24%).

Limited access to capital is the leading operational concern for 48% of the Fast 50. With capital markets continuing to be tight in the United States and Europe, access to capital remains as important this year as it was in last year's Fast 50 survey. A second major concern is that management has limited time to examine the business (42%). This is followed in importance by shortages in the workforce (32%) and problems in company infrastructure (24%). Declines in corporate culture and customer service are less important operational concerns, charting in at 20% and 10% respectively.

Developing the sales and marketing side of their businesses is the most pressing operational challenge for the Top 50 firms - not technological and market change. Just under half of the surveyed firms put sales and marketing in the number one position (46%). Despite the fact that these firms are by definition technology driven, only 24% saw technological and market change as the major challenge ahead of them.

Please see full ranking and additional information on www.fast50ce.com .

About Fast 50

The Fast 50 program was launched in California's Silicon Valley in 1995. In less than a decade, the program has spread to nine countries or international regions such as Central Europe and 19 different programs within the United States. Please see www.fast50ce.com for further information.

About Deloitte & Touche Central Europe

Deloitte & Touche Central Europe is an organization of member firms devoted to excellence in providing professional services and advice. We are focused on client service through a global and regional strategy executed locally in 16 countries in Central Europe. With access to the deep intellectual capital of 120,000 people worldwide including more than 2,000 in Central Europe, our member firms (including their affiliates) deliver services in four professional areas: audit, tax, consulting, and financial advisory services. Our member firms serve many of the region's largest companies, as well as large national enterprises, public institutions, and successful, fast-growing global growth companies.

Deloitte & Touche Central Europe is a member firm of Deloitte Touche Tohmatsu, 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 names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other related names. The services described herein are provided by the member firms and not by the Deloitte Touche Tohmatsu Verein. For regulatory and other reasons certain member firms do not provide services in all four professional areas listed above.

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