2009 Technology Fast 500TM Rankings

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NEW YORK, October 20, 2009 - Deloitte today released the 2009 Technology Fast 500™, an annual ranking of the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America based on five-year fiscal revenue growth. ReachLocal, a global provider of localized Internet advertising solutions, achieved the coveted top spot on the list with 2008 fiscal year revenue of $146.69 million and a five-year fiscal growth rate of 146,050 percent. The company is privately held and based in Woodland Hills, California.

“Deloitte’s Technology Fast 500™ identifies some of the most promising technology companies in North America today,” said Phil Asmundson, vice chairman and U.S. Technology, Media & Telecommunications leader, Deloitte LLP. “I am proud to congratulate ReachLocal and all the ranked companies for their remarkable achievements.”

“Being ranked first on the Technology Fast 500™ list is an amazing honor and we thank Deloitte for this prestigious recognition,” said Zorik Gordon, co-founder and chief executive officer of ReachLocal. “Our success is a result of the tireless dedication and effort of our hundreds of employees worldwide. This would have never been possible without them.”

Geographic Trends

Based on this year’s rankings, more of the Technology Fast 500™ companies are located in the Northeast. In the past year, the number of Technology Fast 500™ companies headquartered in the Northeast increased 7 percent. Conversely, Technology Fast 500™ companies in the West declined 5 percent.

Overall, however, the West region remains home to the highest concentration of Technology Fast 500™ companies (34 percent), followed by the Northeast (28 percent), Southeast (15 percent), Canada (10 percent), Southwest (8 percent) and Midwest (5 percent).

“Companies are attracted to regions that provide a talented workforce, supportive local government and access to venture financing,” said Mark Jensen, managing partner, Venture Capital Services, Deloitte & Touche LLP. “Regions with these offerings will continue to attract high growth companies and the innovation that comes along with them.”

Sector Trends

The software sector comprised 38 percent of the overall list with 189 companies, followed by communications/networking (16 percent), biotechnology/pharmaceuticals (13 percent) and Internet (9 percent). Medical equipment, scientific/technical instrumentation, computer/peripherals, semiconductors, media/entertainment and clean technology companies rounded out the remaining 24 percent.

However, no software companies cracked the top 10. Biotechnology and pharmaceutical companies made the strongest showing in this elite group, capturing four of the top 10 spots. There are 67 biotechnology and pharmaceutical companies on the full list and these companies recorded an average overall growth rate of 4,549 percent, the highest overall growth rate of any sector.

Deloitte added clean technology as a new category in 2009 and seven companies from the sector achieved rankings, comprising just over 1 percent of the overall list. These companies include:

• SunPower Corporation (NASDAQ: SPWRA and SPWRB)
  (www.sunpower.com)
• GT Solar International, Inc. (NASDAQ: SOLR)
  (www.gtsolar.com)
• Pentadyne Power Corporation
  (www.pentadyne.com)
• Energy Recovery, Inc. (NASDAQ: ERII)
  (www.energyrecovery.com)
• Evergreen Solar, Inc. (NASDAQ: ESLR)
  (www.evergreensolar)
• Satcon Technology Corporation (NASDAQ: SATC)
  (www.satcon.com)
• FuelCell Energy (NASDAQ: FCEL)
  (www.fuelcellenergy.com)

“Clean technology is clearly the sector attracting the most interest from VCs,” said Jensen. “Many companies in this sector are still very young, but we expect to see them become an increasing presence on our list in years to come.”

Economic factors impact the average growth rate

The average growth rate for Deloitte’s Technology Fast™ 500 fell by 720 percent to 2,486 percent in 2009, from 3,206 percent in 2008. The 10-year high was recorded in 2002, when the overall average growth rate was 6,772 percent. The 10-year low was in 2007 with average growth of 1,823 percent.

“The winning companies are not immune to the economy and their success in the challenging economic environment is truly impressive,” said Jensen. “As the economy eventually recovers, we expect the average growth rate to increase.”

The full list of ranked companies as well as additional detail on Deloitte’s Technology Fast 500TM program can be found at www.fast500.com

Technology Fast 500™ Selection and Qualifying Criteria

Technology Fast 500TM provides a ranking of the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. This ranking is compiled from nominations submitted directly to the Technology Fast 500™ web site, and public company database research conducted by Deloitte. Technology Fast 500™ award winners for 2009 are selected based on percentage fiscal year revenue growth during the five-year period from 2004 to 2008.

In order to be eligible for Technology Fast 500™ recognition, companies must own proprietary intellectual property or proprietary technology that contributes to a significant portion of the company's operating revenues. Using other companies' technology or intellectual property in a unique way does not satisfy this requirement. Consulting companies, professional service firms, etc. are not eligible unless they have proprietary technology that contributes to a significant portion of their operating revenues.

Technology Fast 500™ award eligibility requirements also include base-year operating revenues of at least $50,000 USD or CD, and current-year operating revenues of at least $5 million USD or CD. These revenues must have more than doubled between 2004 and 2008. Additionally, companies must be in business for a minimum of five years, and be headquartered within North America.

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