CANADA'S WORLD-CLASS TECHNOLOGY COMPANIES DON'T GET THE RESPECT THEY DESERVE

Deloitte & Touche Launches the Canadian Technology Fast 50 to Celebrate the Success of Canada’s Technology Companies

TORONTO, March 30, 1999 – Although Canadian technology companies have demonstrated their capabilities to perform on a global stage, their undervalued stock suggests Canada is not recognized as a global technology player.

"Canada’s technology industry is clearly world class yet it is not getting the respect it deserves," says Garry Foster, National Director, High Technology, Deloitte & Touche. "We need to project our successes globally to ensure recognition on an international platform. That's the goal of the Canadian Technology Fast 50." The Canadian Technology Fast 50 recognizes the importance of Canadian technology companies and profiles Canada's industry leaders helping them to get the attention and support they deserve at home and abroad.

According to a recent comparative analysis of the fastest growing Canadian and US technology companies conducted by Deloitte & Touche, Canadian companies perform at an equal or greater level than their US counterparts. In the comparison, 10 Canadian technology companies placed among the top 100 fastest-growing firms across North America in terms of revenue growth based on the past five years, demonstrating that Canada’s thriving technology industry can compete globally.

Yet in 1998, the DTCF Mid-market High Tech Index, a normalized market cap weighted index consisting of 34 Canadian technology stocks listed on the TSE with market capitalization of less than $1 billion, posted a 13 per cent loss for the year. Meanwhile the US technology-laden Nasdaq Composite Index surged 40 per cent and the Russell 2000 Tech Index rose by 12 per cent. These indexes demonstrate the lack of stock value Canadian companies are receiving despite their revenue growth performance.

Canadian technology firms compare favourably versus their US counterparts in terms of revenue growth over the past five year period. Comparing 1998 revenue growth rates of Canadian companies to the Top 500 US companies: Canadian-based Crosskeys Systems Corporation ranked 10th in North America; Entrust Technologies Ltd. ranked 16th; and IPS Automation ranked 43rd. Crosskeys Systems Corporation; Entrust Technologies Ltd.; and IPS Automation grew their revenues 24,613 per cent, 14,381 per cent, and 8,831 per cent respectively.

"Deloitte & Touche is taking a leadership role with the Fast 50 program to recognize technology companies in Canada and around the world. This program is an excellent tool for fast-growing technology companies to communicate their success to the national and international investor community and benchmark themselves against other successful Canadian technology companies," says Doug McDonald, Partner, Corporate Finance, Deloitte & Touche. "Today launches the 1999 Technology Fast 50 call for entries and we strongly encourage technology companies to apply for the 1999 Canadian Technology Fast 50 on-line by visiting www.deloitte.ca."

Deloitte & Touche is one of Canada’s leading business advisors to the high tech industry with clients ranging from start-ups to world class organizations. The Deloitte & Touche High Technology practice works with companies involved with the business of software and multimedia, telecommunications, computers and peripherals, semiconductors and semiconductor equipment, and life sciences.

Deloitte & Touche is a leading Canadian professional services firm providing a full range of accounting, auditing, tax and management consulting services, with more than 5,000 people in offices in 50 cities across the country. The firm's multifunctional professionals bring their expertise to developing effective business solutions to more than 55,000 clients in all sectors of the Canadian economy. In Québec, the firm operates as Samson Bélair/Deloitte & Touche.

Deloitte & Touche is part of Deloitte Touche Tohmatsu, a global leader in professional services with more than 90,000 people in over 135 countries.

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