New England's Technology Companies Rank Among theNation's Fastest-Growing: 53 Massachusetts...

BOSTON--(BUSINESS WIRE)--Nov. 16, 1999--

Percussion Software Inc., of Stoneham, Mass., is one of the 20 fastest-growing technology companies in the nation, according to the Deloitte & Touche Fifth Annual Technology Fast 500 listing.

Ranked number 16, Percussion Software had a

five-year growth rate of 15,599 percent, moving from revenues of $50,000 in 1994 to $7,880,000 in 1998. Announced Tuesday by the High Technology Group of Deloitte & Touche, the Fast 500 ranks the 500 fastest-growing technology companies in the United States, based on percentage growth in revenue over a five-year period (1994 to 1998).

"We are excited to be in the top 20 of the Fast 500," said Barry Reynolds, CEO of Percussion Software Inc. "Being included in the top 20 places us among some of the best known and highest-flying companies in high tech, companies such as Siebel, Excite and Netscape."

Three other Massachusetts-based companies also placed within the top 50 of the Fast 500: NetGuru, Inc. of Waltham, Mass. (No. 24), Abacus Software Group of Burlington, Mass. (No. 39), and DynaGen Inc., of Cambridge, Mass. (No. 45).

In addition to the 53 Massachusetts companies that made the list, five of the Fast 500 are from New Hampshire: NTP Software, of Manchester, N.H. (No. 38), Diatide Inc., of Londonderry, N.H. (No. 107), Omtool Ltd., of Salem, N.H. (No. 201), Lilly Software Associates, of Hampton, N.H. (No. 260), and Granite Systems Inc., of Manchester, N.H. (No. 265).

Altogether, companies based in the Northeastern region of the United States comprise 36 percent of the Fast 500, up from 31 percent in 1998.

Massachusetts Companies Grew an Average 2,176 Percent

Fast 500 companies in the Bay State grew an average of 2,176 percent, compared with 2,350 percent for the Northeastern region. The 1999 national average revenue growth rate jumped 69 percent -- 4,998 percent in 1999 versus 2,958 percent in 1998. Growth rates for the 500 companies ranged from 535 to 782,978 percent.

"Massachusetts is clearly a leading high technology center, with 11 percent of Fast 500 winners based here," said Stephen DiPietro, co-chairman of the New England Technology Fast 50 program and audit partner with Deloitte & Touche's Growth Company Services, Technology practice in Boston.

"We're certainly experiencing the technological orientation in the mix of our new business."

Of the 53 Massachusetts-based companies on the Fast 500, 56 percent are in software, six percent are in communications, six percent are in Internet, 11 percent are in biotechnology, eight percent are in computers and peripherals, 11 percent are in medical, scientific or technical manufacturing, and two percent are in other technology-related businesses.

Number One Fast 500 Winner: Siebel Systems at 782,978 Percent Siebel Systems, Inc. of San Mateo, Calif., with a five-year revenue growth of 782,978 percent, topped the 1999 Fast 500 list. Its revenues grew from $50,000 in 1994 to $391,539,000 in 1998. Siebel develops enterprise software and is one of 249 software companies to make the list.

Three well-known Internet companies placed second, third and fourth on the list. Second-ranked Excite Inc. (now Excite@Home) of Redwood City, Calif., had 187,081 percent growth, growing from revenues of $83,000 in 1994 to $155,360,000 in 1998.

Third-ranked Earthlink Network Inc. of Pasadena, Calif. had 158,405 percent growth, with revenues moving from $111,000 in 1994 to $175,941,000 in 1998. Fourth-ranked Netscape Communications Corp. of Mountain View, Calif., had 64,240 percent growth, with revenues increasing from $696,000 in 1994 to $447,809,000 in 1998.

Ranked fifth is Applied Digital Solutions Inc., a communications company based in Palm Beach, Fla., which had 64,012 percent growth in revenues from $323,000 in 1994 to $207,081,000 in 1998.

Qualifying Criteria for the Fast 500

The Fast 500 list is compiled from three sources: winners of Deloitte & Touche's 19 regional U.S. Fast 50 programs; nominations submitted directly to the Technology Fast 500, and public company database research. To qualify for the Fast 500, entrants must have had revenues of at least $50,000 in 1994.

Entrants are public or private companies headquartered in the United States; and must be a "technology company", specifically defined as a company that produces technology, manufactures a technology-related product, is technologically intensive, uses technology in problem-solving, or devotes a high percentage of effort to research and development of technology.

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Note to Editors: For the complete list of Deloitte & Touche Technology Fast 500 winners, visit www.fast500.com.