Massachusetts is One of the Top Three States for Fast Growth Technology Companies.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Oct. 16, 2002

Twenty-eight Massachusetts Companies Included

in Deloitte & Touche's 2002 Technology Fast 500

Twenty-eight Massachusetts companies are among the 500 fastest-growing technology companies

in North America, according to the eighth annual Technology Fast 500 ranking announced today by Deloitte & Touche's Technology, Media & Telecommunications Group. The Technology Fast 500 ranks the fastest growing technology companies based on average percentage revenue growth over a five-year period (1997 - 2001).

Massachusetts, with twenty-eight companies, leads the New England region (CT, MA, ME, NH, RI and VT), which is home to forty-four Fast 500 winners. The only states with more companies than Massachusetts in this year's Fast 500 are California with one hundred and forty-nine and New Jersey with thirty-three.

"Our New England technology practice is proud to recognize the numerous Massachusetts and other New England-based companies on the Fast 500 list. With Massachusetts being one of the top three states for fast-growth technology companies it is evident that technology continues to be a driving force in our region," said Steve DiPietro, co-chair of the Fast 50 program and a partner in Deloitte & Touche's Technology, Media & Telecommunications Group.

The top MA-based company on the Fast 500 is iBasis, based in Burlington, MA. As the number eight company on the Fast 500, iBasis had a five-year revenue growth rate (1997-2001) of 105,231%. Ranked as the top Rising Star the previous two years, iBasis is a leader in advanced internet-based voice communications and is led by CEO, Ofer Gneezy.

The Northeast (CT, NJ, NY, MA, ME, NH, RI, and VT) is home to 23% (114 companies), holding steady from 23% in 2001 and 25% in 2000. Northeastern Fast 500 winners had the greatest increase in average percent growth among the regions. The Northeast's average growth percentage was 8,923%, more than double its 4,244% in 2001 and 4,308% in 2000, and more than triple its 2,350% in 1999.

This year's five-year average growth rate for all 500 companies is the highest since the program's inception eight years ago, at 6,772%. Growth percentages for the 2002 Fast 500 winners ranged from 614 percent to 293,493 percent. Combined, the top five 2002 Fast 500 winners' average growth rate was 196,763 percent.

Software Companies Dominate the Fast 500

Forty-eight percent (240 companies) of the 2002 Fast 500 winners are in the software industry, down from 57 percent in 2001. Companies in the life sciences industry (created from the categories formerly known as biotechnology and medical, scientific and technical manufacturing) represented 16 percent (80 companies) of the winners, up slightly from the 15 percent held by the two former categories in 2001.

Communications and networking companies accounted for 15 percent (75 companies), up slightly from 13 percent in 2001. Internet companies represented 10 percent, or 51 companies, down significantly from last year's 15 percent. Computer and peripheral companies represented 4 percent (20 companies), down slightly from 6 percent in 2001. Semiconductor and electronics companies represented 7 percent (34 companies) this year, up slightly from last year's 6 percent.

Number 1 Fast 500 Winner ITXC Corp. Grew at 293,493 Percent

The Number 1 winner, ITXC Corp. (www.ITXC.com) is one of the largest wholesale telephone companies in the world. The company uses the Internet to transport its calls to over 160 countries. Using the Internet enabled ITXC to become a major international carrier without going into debt for billions of dollars to build its own physical network. In 2002, about 2 percent of all international calls traveled over ITXC's network according to company estimates.

Fast 500 "Rising Stars" in New England

As an accompaniment to the Fast 500, Deloitte & Touche also honors 25 "Rising Star" companies. These winners have accomplished fast growth and meet the criteria of being a technology company based in North America and must be in business less than five years but at least three years. Rankings are based on their average percentage growth in revenues from 1999 to 2001. Rising Star companies based in New England on Deloitte & Touche's "Rising Stars" list include:

13. Akamai Technologies, Inc. in Cambridge, MA with 3,995 percent growth.

24. Telica, Inc. in Marlborough, MA with 1,435 percent growth.

Qualifying Criteria for the Fast 500

The Fast 500 list is compiled from three sources: Deloitte & Touche's 20 regional North American Fast 50 programs, nominations submitted directly to the Fast 500, and public company database research. To qualify for the Fast 500, entrants must have had 1997 operating revenues of at least $50,000 USD and $75,000 CD for the United States and Canada, respectively. Deloitte & Touche researchers examined financial statements to validate operating revenues.

Entrants are public or private companies headquartered in North America and must be a "technology company," defined as a company that owns proprietary technology that contributes to a significant portion of the company's operating revenues or devotes a high percentage of effort to research and development of technology.

About Deloitte & Touche

Deloitte & Touche, one of the nation's leading professional services firms, provides assurance and advisory, tax, and management consulting services through nearly 30,000 people in more than 100 U.S. cities. The firm is dedicated to helping its clients and its people excel. Known as an employer of choice for its innovative human resources programs, Deloitte & Touche has been recognized as one of the "100 Best Companies to Work for in America" by Fortune magazine for five consecutive years. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. Deloitte & Touche is the U.S. national practice of Deloitte Touche Tohmatsu. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity. For more information, please visit Deloitte & Touche's web site at www.deloitte.com.

Note: For a complete list of the Deloitte & Touche Technology Fast 500 winners for 2002 and past years, visit www.fast500.com.

All names are trademarks or registered trademarks of their respective companies and are used for information purposes only.

The Deloitte & Touche Technology Fast 500 contains general information only, and Deloitte & Touche is not, by means of this program, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. The Fast 500 is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect you or your business. Past performance is not necessarily indicative of future results. In addition, prediction of future events is inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results to vary materially. Before making any decision or taking any action that may affect you or your business, you should consult a qualified professional advisor. Deloitte & Touche shall not be responsible for any loss sustained by any person or entity that relies on this program.

2002 Technology Fast 500 Top Ten Companies:

Rank Company Name          Type of Business  City        State   %
 1   ITXC Corp              Communications/
                             networking      Princeton    NJ  293,493%
 2   Extreme Networks, Inc. Communications/
                             networking      Santa Clara  CA  191,788%
 3   Cray Inc.              Computers/
                             Peripherals     Seattle      WA  180,450%
 4   OpenWave Systems Inc.  Communications/
                             networking      Redwood City CA  159,235%
 5   Universal Access       Communications/
                             networking      Chicago      IL  158,847%
 6   Tellium, Inc.          Communications/
                             networking      Oceanport    NJ  137,436%
 7   Interwoven, Inc.       Software         Sunnyvale    CA  120,567%
 8   iBasis, Inc.           Communications/
                             networking      Burlington   MA  105,231%
 9   Selectica, Inc.        Software         San Jose     CA   97,982%
10   Omnivision             Semiconductor/
      Technologies, Inc.     Equipment       Sunnyvale    CA   90,929%


2002 New England Technology Fast 500 Companies (not including CT):

Rank Company Name          Type of Business  City         State   %
 8   iBasis, Inc.           Communications/
                             Networking     Burlington     MA 105,231%
 16  edocs                  Software        Natick         MA  48,277%
 19  Novell eXtend
     (fka Silverstream
      Software, Inc.)       Software        Billerica      MA  27,183%
 33  Centra Software        Software        Lexington      MA  13,435%
 57  ValueClick             Internet
     (fka BeFree!Inc.)       Infrastructure Marlborough    MA   8,383%
 84  SonaMed Corporation    Biotechnology   Waltham        MA   5,696%
118  IntelliCare, Inc.      Software        South Portland ME   3,605%
128  RadView Software, Inc. Software        Burlington     MA   3,304%
134  Connected Corporation  Software        Framingham     MA   3,198%
137  SoftArtisans, Inc.     Software        Brookline      MA   3,136%
163  Z Corporation          Computers/
                             Peripherals    Burlington     MA   2,786%
187  Unica Corporation      Software        Lincoln        MA   2,322%
198  Network Engines, Inc.  Computers/
                             Peripherals    Canton         MA   2,119%
204  SpeechWorks
      Internatl, Inc.       Software        Boston         MA   2,052%
205  ATG                    Software        Cambridge      MA   2,050%
215  Switchboard, Inc.      Internet
                             Infrastructure Westboro       MA   1,950%
220  Precise Software
      Solutions, Inc.       Software        Westwood       MA   1,894%
222  Granite Systems, Inc.  Software        Manchester     NH   1,868%
231  Netegrity, Inc.        Software        Waltham        MA   1,729%
243  CMGI Inc.              Internet
                             Infrastructure Andover        MA   1,653%
263  eCopy, Inc.            Software        Nashua         NH   1,436%
327  Aspect Medical         Med/Scientific
      Systems, Inc.          /Tech          Newton         MA   1,068%
331  MatrixOne, Inc.        Software        Westford       MA   1,058%
343  Heartlab, Inc.         Communications/
                             Networking     Westerly       RI   1,000%
354  ImmunoGen, Inc.        Biotechnology   Cambridge      MA     964%
380  Sepracor, Inc.         Biotechnology   Marlborough    MA     892%
386  Authoria, Inc.         Software        Waltham        MA     865%
391  BURST! Media, LLC      Internet
                             Infrastructure Burlington     MA     857%
399  DYS Analytics, Inc.    Software        Wellesley      MA     815%
432  CYTYC Corporation      Biotechnology   Boxborough     MA     739%
458  Molecular, Inc.        Internet
                             Infrastructure Watertown      MA     673%
474  I-many, Inc.           Software        Portland       ME     646%
478  FiberCore, Inc.        Communications/
                             Networking     Charlton       MA     640%
500  Pragmatech
      Software, Inc.        Software        Amherst        MA     614%