Sacramento's SARTA TECH INDEX REBOUNDS IN Q'3

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News Release

EMBARGOED UNTIL December 8, 2006

Media contact:
Josh Morgan
Morgan/Dorado
916.941.0901
josh@morgandorado.com


SARTA TECH INDEX REBOUNDS IN Q'3

Sacramento Area Regional Technology Alliance
Releases Third Quarter Index of the Region’s Tech Industry’s Economic Health


Sacramento, Calif. — The SARTA Tech Index™ rebounded in Q3, 2006 after slumping for the first time ever in Q2, 2006. The rise in the Index was due primarily to an increase in private equity investments in the region. As a measure of the greater Sacramento region’s high tech economy, this reflects ongoing activity around start-ups and the potential for future economic growth.

At 176.7 for the three months ending September 30, 2006, SARTA’s third quarter Tech Index™ rose by 6.23% over the Index’s numbers for the second quarter of 2006.

“Q3 shows that the decline in Q2 was a hiccup due to a public market pullback, and the Tech Index is now at an all-time high,” said Oleg Kaganovich, CEO of SARTA. “This quarter’s strong showing is a direct result of the continued investment in the region, and the growth of the area’s newest public companies.”

During this period, the SARTA Tech Index outperformed the DOW, S&P 500 and NASDAQ indices.

Publicly-held companies contributing to the SARTA Tech Index rise include:

Volcano Corp. (up 44.5%)
NutraCea (up 33.2%)
International DisplayWorks (up 22.6%)
Digital Music Group (up 11.4%)
SureWest (up 0.8%)
Public companies that moved down include:

ThermoGenesis (down 6.0%)
Gencorp (down 19.6%)
Unify (down 23.8%)
Private company fundamentals remain strong:

The greater Sacramento region has experienced positive employment growth for the seventh (7) consecutive quarter;
Employment numbers rose by 3.18 percent for 3Q 2006
Ongoing investment activity ($24.25M in 3Q 2006)
SARTA operates the SARTA Tech Indexä with the assistance of the Sacramento Technology Practice of Ernst & Young, LLP. Through the Index, SARTA monitors the growing tech sector in the greater Sacramento nine-county area, and identifies companies demonstrating success and strong business models. The SARTA Tech Index is one of SARTA’s flagship programs helping the organization fulfill its vision to attract $1 billion in investment capital to the region by the end of 2010.

SARTA Tech Index™ Companies
Most recent quarter submitted: 3Q 2006

Company Name Industry City County
AbsoluteHire Software Roseville Placer
Administrative Systems, Inc. Software Sacramento Sacramento
Affinity Global Solution Software Roseville Placer
AgraQuest, Inc. Life Science Davis Yolo
AgreeYa Solutions Software Folsom Sacramento
Akros Silicon, Inc. Semiconductor Folsom Sacramento
Alliance Computer Technologies Software Rocklin Placer
Antibodies Incorporated Life Science Davis Yolo
Atrua Technologies (Varatouch) Consumer Electronics El Dorado Hills El Dorado
BizFlex Software Auburn Placer
Ceronix Inc. Hardware Auburn Placer
Comtek Computer Systems Hardware Rancho Cordova Sacramento
CoreLogic Systems, Inc. Software Sacramento Sacramento
CustomerLink Systems, Inc. Software Roseville Placer
Delegata Software Sacramento Sacramento
Digital Music Group, Inc. Digital Content Distribution Sacramento Sacramento
Digital Path, Inc. Wireless Chico Butte
EA Consulting, Inc. Software Folsom Sacramento
Gencorp Manufacturing Rancho Cordova Sacramento
Hands On Video Relay Services Software Rocklin Placer
Hansen Information Technologies Software Rancho Cordova Sacramento
Herakles Data Software Sacramento Sacramento
Integres Global Logistics, Inc. Software Rancho Cordova Sacramento
International DisplayWorks Hardware Roseville Placer
Jadoo Power Systems Energy Folsom Sacramento
JiWire, Inc. Software/Wireless Folsom Sacramento
Keyeye Communications Semiconductor Sacramento Sacramento
Lipomics Technologies, Inc. Life Science West Sacramento Yolo
MaxPreps Dot Com Portal Cameron Park El Dorado
MedInitiatives Software Rancho Cordova Sacramento
Meridian Systems, Inc. Software Folsom Sacramento
Mionix Corporation Life Science
Rocklin Placer
Mobius Technologies, Inc. Recycling Grass Valley Nevada
Motion Control Engineering, Inc. Hardware Rancho Cordova Sacramento
Novozymes Biotech, Inc. Life Science Davis Yolo
NutraCea Life Science El Dorado Hills El Dorado
R Systems, Inc. Software El Dorado Hills El Dorado
RagingWire Enterprise Solutions Data Center Sacramento Sacramento
Sierra Logic Semiconductor Roseville Placer
Squaretree Software Software Sacramento Sacramento
SureWest Communications Telecom Roseville Placer
Synergex International Corporation Software Gold River Sacramento
Telestream Software Nevada City Nevada
ThermoGenesis Corporation Life Science Rancho Cordova Sacramento
Unify Corp. Software Sacramento Sacramento
Universal ATM Network Software Sacramento Sacramento
Veterinary Information Network Software Davis Yolo
Visionary Integration Professionals LLC(VIP)
Software Folsom Sacramento
Volcano Therapeutics Life Science Rancho Cordova Sacramento
Webraiser Technologies Software Rancho Cordova Sacramento

Companies To Watch*
Hot new startups: 2Q 2006

Company Name Industry
Agoura Technologies Nanotech
Applied Data Management Software
bioCOOL Technologies Life Science
Coversant, Inc. Software
emTRAIN Software
Mutant Logic Semiconductors
Revionics Software
Riavo Systems, Inc. Networking
SynapSense Software
SimpliFi Digital, Inc. AV/Electronics

*Companies to Watch are smaller non-Index companies with innovative technologies, management teams or business models.


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About the SARTA Tech Index™

As part of its mission to foster high tech entrepreneurial growth and attract private investment capital to the greater Sacramento region, SARTA has developed an innovative tool, the SARTA Technology Index ™, to monitor the health and status of the region's technology sector. Just as the S&P 500 acts as a bellwether for corporate America, the SARTA Technology Index™ is a barometer of how technology companies in the greater Sacramento region are performing.

Today, there are national and international indices of technology companies, but to our knowledge, this is the first regional index ever to be developed. The Index includes public and private technology companies headquartered in the greater Sacramento region.

The numerical value of the SARTA Technology Index™ is based on a proprietary formula that tracks three financial metrics: revenue, employees and equity capital raised. The Index was set to 100.00 at its initiation and is updated on a quarterly basis.


About SARTA

The Sacramento Area Regional Technology Alliance (SARTA) is a tech-focused 501(c) (3) corporation that supports entrepreneurial programs, companies and technology investment throughout Butte, El Dorado, Nevada, Placer, Sacramento, Solano, Sutter, Yolo and Yuba counties.

SARTA’s mission is to accelerate the growth and development of technology companies and the technology sector in the Sacramento region. Through its partners, SARTA connects and provides resources for the region’s high-tech entrepreneurs, investors, business, non-profit, economic development and community leaders, supporting its goal to attract $1 billion in investment capital to the region. SARTA also provides high-tech entrepreneurs, executives, and other business and community leaders with connectivity and resources for growth, networking, and educational opportunities.

SARTA is directed by a 45-person board of directors composed of regional leaders of academic institutions, investment groups, business associations and technology corporations that seek to foster technology innovation and growth in the Northern California counties of El Dorado, Nevada, Placer, Sacramento, Solano, Sutter, Yolo, Yuba and Butte. For more information, go to www.sarta.org.

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