Press Release

• Growth attributed to clearly defined sales strategy and innovative products targeted at rapidly growing telco triple play IPTV and mobile markets

OTTAWA, Canada-October 7 2004 - Espial, the leading provider of rapidly customizable TV set-top box and mobile phone software, ranked 26th in Deloitte & Touche's prestigious Canadian Technology Fast 50 program.  Rankings are based on percentage of growth in fiscal year revenues over five years, from 1999-2003.  Continued dramatic growth is attributed to an aggressive sales strategy and innovative new products for the Internet Protocol Television (IPTV) market and mobile market, with such influential customers as Motorola and SIEMENS.

Espial President, Jaison Dolvane credits Espial’s performance in the digital TV and mobile handset markets with the company's 792% revenue growth from 1999-2003: "It's an honour to be recognized for our growth two years in a row.  This continues to be realized through our capability for technical innovation and bringing differentiated products to fast growing market segments."

During 2004, Espial:

• Launched Espial Evo – set-top box software applications targeted at the digital TV & IPTV market
• Announced a series of new customers and partners, including Myrio, nCUBE, Pace, I3Micro, Amino, Siemens, Access Devices and NEC
• Opened new sales offices in Europe and Asia

The dramatic increase in Espial company revenues during the 5-year period resulted in rank of 26th overall in the Canadian Technology Fast 50.  To qualify for the Technology Fast 50, companies must have had operating revenues of at least $75,000 CDN in 1998 and $1,000,000 in 2002, be controlled and headquartered in Canada, be a "technology company" defined as owning proprietary technology that contributes to a significant portion of the company's operating revenues and/or devote a significant proportion of revenues to research and development of technology.

“In today’s economy, triple-digit percentage revenue growth is an exceptional accomplishment. We commend Espial for making the commitment to technology and delivering on the promise of market longevity,” said Garry Foster, National Director, Technology, Media & Telecommunications, Deloitte.  “We are proud to honor Espial as a Deloitte Canadian Technology Fast 50 winner."

Winners of the 19 regional Technology Fast 50 programs in Canada and the United States are automatically entered in the Deloitte Technology Fast 500 program, which ranks North America's top 500 fastest growing technology companies. For more information on the Fast 50 or Fast 500 programs, visit www.fast50.com or www.fast500.com.

About Espial

Espial is a leading provider of set-top box and mobile handset software, specializing in IPTV applications, such as graphical user interfaces, Video-on-Demand, Web Portal and Browser capabilities and T-commerce applications.  Espial’s software allows consumer electronics manufacturers to reduce their time to market and development risk for technologically advanced TVs, DVD recorders, set-top boxes, and mobile phones – anything that requires an enhanced user experience.  Espial has deployed proven solutions for home and mobile broadband networks.  Visit www.espial.com for more information.

About Deloitte & Touche

Deloitte, Canada's leading professional services firm, provides audit, tax, financial advisory services and consulting through more than 6,100 people in more than 47 offices. Deloitte & Touche LLP, operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. The firm is dedicated to helping its clients and its people excel. Deloitte is the only professional services firm to be named to the Globe and Mail's Report on Business Magazine annual ranking of Canada's top employers for two consecutive years: 35 Best Companies to Work for in Canada in 2001 and 50 Best Companies to Work for in Canada in 2002. 

For more information contact:

Yvonne Robinson
Director, Marketing Communications
Espial Group
613 230 4770 ext 1142
yrobinson@espial.com