01 October 2007

New Zealand’s fast-growing information and communications technology (ICT) sector has unveiled several technology and investment achievements this year – including partnering with Samsung to create the world’s largest LCD display, working with Microsoft on a communication solution for the health industry, and securing expansion investment from the likes of Motorola, SAP and CCMP Capital.

Korean electronics giant Samsung used technology developed by the New Zealand arm of display technology pioneer PureDepth Inc. to create the record 46-inch display monitor, which was showcased in May at the Society for Information Display Conference in California. The monitor used multi-layer display technology developed by PureDepth, which uses two or more LCD panels to create a depth of vision and realistic 3D effects. Founded in 1999 in New Zealand, PureDepth is now headquartered in California but retains a research and development (R&D) centre in New Zealand.

Motorola’s investment arm, Motorola Ventures, was one of three venture capital firms that in January invested US$10.25 million in New Zealand-based software company OpenCloud. The money will be used to market globally OpenCloud’s JAIN SLEE open standard software, which makes it easier and faster for telecoms to develop new applications. The other two investors were United Kingdom technology venture capital firm Advent Ventures and New Zealand venture capitalist No. 8 Ventures.

At the world’s largest health conference (HIMSS07) in New Orleans earlier this year, New Zealand’s Simpl Group displayed its Health Connection Engine – which was developed with funding from Microsoft and the New Zealand government. The Engine was created as part of Microsoft’s Connected Health Framework, which aims to improve health system interoperability and data exchange. Microsoft bought the sole rights to the Engine.

A consortium consisting of CCMP Capital and Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan, bought the Yellow Pages business of leading New Zealand telecommunications operator Telecom earlier this year. The Yellow Pages Group prints more than six million directories of personal and business contact details and products and services and has more than 600 employees around New Zealand. The consortium paid NZ$2.24 billion for the Yellow Pages business, outbidding three other buyers on Telecom’s shortlist. Both consortium partners have previously made investments in New Zealand – CCMP Capital in the beverages sector and Teachers’ Private Capital in forest assets.

SAP Ventures, a unit of German software giant SAP, in April announced an investment in Right Hemisphere, which creates graphic communication and collaboration tools. The tools enable easier and faster transfer of up-to-date product information to downstream stakeholders. Right Hemisphere has also collaborated with the New Zealand government to create NextSpace, a not-for-profit contract R&D and innovation centre based around the company’s software products. NextSpace will receive NZ$7 million in government funding over three years for initiatives aimed at bolstering Kiwi 3D digital content firms and research institutions. This includes setting up an Auckland facility to help grow a virtual cluster of companies, and others specialising in graphics communications technology, from around New Zealand.

Other key ICT sector developments include:

• Fronde Anywhere in June launched an authentication product that overcomes security issues associated with remote working or online customer accounts. The company’s TwoSecure product generates a one-time password via mobile phones that can be used by staff or customers logging on to an organisation’s network or website. Fronde Anywhere already offers a similar two-factor authentication solution to banks and finance companies.

• In August, United States-based satellite imagery provider Earthstar Geographics announced a partnership with Daestra, which will enable Daestra to take its TracPlus global tracking system to the world. TracPlus allows the location of aircraft, ships and vehicles to be monitored with a single integrated system.

• The New Zealand government’s science research agency provided investment support to management software company Greentree to help it develop technology to provide automatic testing for new programs. The technology will enable Greentree to pump out software upgrades on a daily basis. The software vendor has already created footholds into the United States and United Kingdom markets, as it embarks on international expansion.

• There has also been a flurry of capital raisings by New Zealand technology companies this year, including the listing on the New Zealand Stock Exchange of Xero Live, a developer of a web-based accounting software service, and the planned listing on an Australian Stock Exchange of Datasquirt, which creates contact centre software.

These latest technology and investment milestones follow strong sales growth by New Zealand’s ICT sector last year. Official statistics show ICT export sales rose 20% to NZ$1.6 billion in the 2006 fiscal year. The ICT industry is now estimated to have just over 2,000 businesses with two or more employees.

For more information, please contact:

martin.brendling@investmentnz.govt.nz

+64 9 302 5474