EPAM Systems, Inc. Among the Entrepreneurial Growth Leaders on this Year's Inc 500 Ranking of Fastest Growing Private Companies

Press Release:

Attributes 1,109% percent five-year growth period to exploding offshore Russian IT market

Princeton, NJ — November 5, 2002 — EPAM Systems, Inc. has been named one of America's entrepreneurial growth leaders by Inc magazine, which released its 2002 Inc 500 ranking of the nation's fastest-growing private companies in October. The ranking will appear in the magazine's special Inc 500 issue, which hit newsstands October 15. Rankings are based on percentage revenue growth over five years, from 1997-2001.

EPAM Systems' CEO, Arkadiy Dobkin credits the emergence of Russia as a premier outsourcing market, the evolution of EPAM's services delivery model and very satisfied customers with the company's five-year, 1,109% growth rate. "We see our sustained growth as evidence of a maturing Russian market in IT Services and software engineering. Eastern Europe is nowadays one of the emerging and most promising outsourcing locations," said Dobkin. "More and more, our customers are turning to Russia to help create, sustain and deliver affordable IT services. We are proud to lead the way and proud to be an Inc 500 company."

Started in 1982, the Inc 500 ranks the nation's leading entrepreneurial firms according to sales growth over the previous five years. Former Inc 500 companies that have gone on to become household names include Microsoft, Timberland, Domino's Pizza and Patagonia.

The 2002 Inc 500 reveals a surprising resiliency within the entrepreneurial sector, where leading companies are continuing to show dramatic rates of growth despite the recession.

The average five-year growth rate of this year's Inc 500 companies is 1,521%. While that is less than the 1,933% average for companies on last year's list, it is nonetheless dramatic in the current environment. Average 2001 sales for the Inc 500 dropped only slightly, from $24,976,000 to $24,706,000. More than two-thirds (73%) of 2002 Inc 500 companies are profitable. Despite the technology bust, "Computer Software & Services" remains the leading industry category, representing nearly 40% of firms on the list.

"This is the first Inc 500 ranking to reflect the full impact of the recession," said Inc editor John Koten. "Yet these entrepreneurs are managing to confound the naysayers and move ahead despite the obstacles. They're showing that smart strategies can succeed even in the toughest of times."

To be eligible for this year's Inc 500, companies had to be independent and privately held through their fiscal year 2001, have at least $200,000 in sales in the base year of 1997, and their 2001 sales had to have exceeded 2000 sales. Holding companies, regulated banks and utilities are not eligible. Inc verifies all information using tax forms and financial statements from certified public accountants and by conducting interviews with company officials.


About EPAM Systems

Established in 1993, EPAM is a leading provider of software development outsourcing services, e-business, enterprise relationship management, and content management solutions. EPAM delivers low-cost, high-quality software solutions globally using an onshore/offshore development model. Headquartered in Princeton, NJ, EPAM has development centers in Moscow, Russia and Minsk, Belarus.

EPAM's customer base includes such companies as Colgate-Palmolive, Halliburton, Verizon Communications, Samsung America, CareFirst BlueCross BlueShield, Bally of Switzerland and other. In the technology world EPAM provides services to such firms as SAP, Brio Software, ServiceWare, PTC, and others. More information about the company can be found at www.epam.com


About Inc.


Inc, the premier magazine for growing companies, may be accessed online at www.inc.com. The magazine is owned by Gruner + Jahr USA, one of the top-ranked magazine publishers in the U.S., reaching one of the largest readerships in America. In addition to Inc, Gruner + Jahr USA publishes Child, Family Circle, Fast Company, Fitness, Inc, Parents, and YM. G+J USA is 25.1% owned by the Jahr Group and 74.9% owned by Bertelsmann AG, the largest privately held and the fifth largest media company overall in the world with yearly revenues at $17.86 billion.

For further information, please contact: press@epam.com