Attention Business, Technology and Economics Editors and Reporters

Toronto - October 28, 2004 - Twenty-six Québec-based companies made Canada's Top 100 Corporate R&D Spenders List 2004 released today by Research Infosource Inc. Together these companies accounted for $3.02 billion in R&D spending in fiscal 2003, an increase of 2.3% from the $2.95 billion in fiscal 2002. Over the same period, revenue dropped by (-1.9%) from $86.6 billion to $84.9 billion.

The 48 companies headquartered in Ontario accounted for $6.4 billion or 61% of the total for fiscal 2003. This represents a decrease of (-8.1%) from fiscal 2002. Québec's 26 companies spent $3.02 billion, representing 29% of total expenditures, an increase of 2.3%. The 16 British Columbia-based firms invested $788.5 million, 7% of the total and a decrease of (-5.6%). The 8 Alberta firms accounted for $282.3 million or 3% of Top 100 spending and posted a decrease of (-5.7%) from 2002.

For fiscal 2003, Québec-based companies accounted for 7 of the 21 firms that qualified for Research Infosource's $100 Million Club (companies that spend $100 million or more on R&D): Bell Canada in 2nd place overall on Canada's Top 100 Corporate R&D Spenders List 2004 spent $1 billion; Pratt & Whitney Canada Corp. in 4th place invested $423 million; Ericsson Canada Inc. in 7th position posted R&D expenditures of $232 million; Alcan Inc. in 8th spot spent $196.2 million; Bombardier Inc. in 9th position invested $188 million, Pfizer Canada Inc. in 14th place spent $143.4 million; and Merck Frosst Canada & Co. in 18th place overall invested $116.1 million.

Despite declines in revenue, 4 Québec firms increased R&D spending: Alcan Inc., SR Telecom Inc. ; Labopharm Inc, and Neurochem Inc. Two firms posted increases in R&D spending in excess of 50%: AEterna Laboratories Inc. (74%) and Labopharm Inc.(130.8%).

Overall, corporate spending on R&D in Canada declined for the second year in a row. In fiscal 2003, Canada's top R&D companies invested $10.6 billion in research and development activities, down (-5.1%) from 2002. This 2-year decline that began in 2002 comes on the heels of 5 straight years (1996-2001) of spending increases. In 2003, 55, over half of the Top 100 companies cut back or held the line on R&D spending. In 2002, only 34 firms reduced their R&D investment.

"Of the larger provinces, Québec is the only one to increase R&D spending in the face of falling revenues", explained Ron Freedman, CEO of Research Infosource. "The Québec government's commitment to research and development appears to be paying dividends."

The complete Canada's Top 100 Corporate R&D Spenders List 2004 and more regional information is available on the Research Infosource website, www.researchinfosource.com. An in-depth Canada's Top Corporate R&D Spenders Report 2004, based on over 650 companies, is slated for publication in November 2004. Research Infosource Inc., a division of The Impact Group, is Canada's source of R&D intelligence. Drawing from an extensive database, Research Infosource Inc. publishes Canada's Top 100 Corporate R&D Spenders List, Canada's Top 50 Research Universities List, and specialized reports.

Information: Ron Freedman, CEO, Research Infosource Inc. (416) 481-7070 ext. 31
Janet Sandor, Director of Communications (416) 481-7070 ext. 25