LOCAL FIRMS AMONG FAST 500 101 CORRIDOR COMPANIES' RAPID GROWTH HAILED.

Byline: Chris Sieroty Staff Writer

Twelve Los Angeles-area companies, including nine from the San Fernando Valley region, rank among North America's 500 fastest-growing technology firms, according to rankings released Thursday.

The companies were clustered along the ``101 Corridor,'' the communities along the Ventura Freeway from Sherman Oaks to Camarillo. Most of them excel in high-tech, software or Internet services, communications, or biotechnology, reflecting the area's continued growth over the past decade in these fields.

``There is a lot of activity in the 101 Corridor,'' said Jack Kyser, chief economist with the Los Angeles Economic Development Corp. ``What you are documenting is a new technology center. It's not Silicon Valley, but there are a lot of cutting-edge companies.''

Ross DeVol, director of regional studies at the Milken Institute in Santa Monica, agreed. ``The Valley has grown up as a center of technology. They are not just dot-com companies, they are firms that are creating jobs and having an economic impact.''

At No. 17, Digital Insight Corp. of Calabasas ranked the highest among local companies on Deloitte & Touche's 2000 Technology Fast 500 rankings with a growth rate of 19,793 percent over the past five years - the poll's measure of performance.

In September, Digital Insight, which develops e-commerce products that allow small- to midsize banks and credit unions to provide online banking services, was ranked first on the Deloitte & Touche ranking of the 50 fastest-growing technology companies in the Los Angeles area.

``We knew we would not be first nationally like we were in a previous survey, but this is absolutely terrific,'' said Steve Reich, Digital Insight's senior vice president of sales and marketing.

Reich said there is a substantial business advantage to being located among so many high-tech firms in Calabasas.

``With so many high-tech companies in the area there is a large labor pool from which we can hire from, which is definitely to our advantage,'' he said. ``We are also located in an area that makes it convenient for workers to live and work. They can live in Ventura County and work in Calabasas, or live in the San Fernando Valley or Los Angeles and commute to work.''

Other L.A.-area firms making the list include Earthlink Network Inc. of Pasadena, No. 38; Adexa Inc. of Los Angeles, No. 162; Guidance Solutions of Marina del Rey, No. 264; LAUNCH Media, No. 267, and Activision, No. 346, both of Santa Monica; Power-One Inc. of Camarillo, No. 371; Calabasas-based THQ Inc., No. 409, and Nova Development Corp., No. 418; MRV Communications of Chatsworth, No. 474; and Franklin Telecommunications of Westlake Village, No. 482. North American Scientific Inc. of Chatsworth rounded out the list at No. 500.

``We have been able to ride the wave of the Internet,'' said Dan Greenfield, vice president of corporate communications at Earthlink. ``We are not stuck to any one technology. Earthlink is well-positioned to adapt to changes in the industry.''

Earthlink, the nation's second-largest Internet service provider, with more than 4.6 million subscribers, has enjoyed a five-year revenue growth rate of 11,204 percent, according to the rankings.

``Los Angeles has long been a nurturing setting for fast-paced companies,' said Gary Dickey, a partner in Deloitte & Touche's Los Angeles High Technology Group. ``Our challenge is to ensure that the region continues to provide the resources and environment that makes this kind of growth possible.''

The Fast 500 list is compiled from three sources: winners of Deloitte & Touche's 22 regional North American Fast 50 programs, nominations submitted directly to the Fast 500 and public company database research.

To qualify for the list, entrants must have had 1995 revenues of at least $50,000 U.S. or $75,000 Canadian, Dickey said. Those on the list include both public and private companies.

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SOURCE: Deloitte & Touche's 2000 Technology Fast 500