Rosetta Stone Makes Inc. 500 List

Aug 28, 2006

Inc. Magazine announced its 25th annual Inc. 500 ranking of the fastest-growing private companies in the country. More than 1,700 private companies applied for the ranking. Rosetta Stone® ranked No. 431 on the list. This is the first time Rosetta Stone has been included in the 500 ranking.

HARRISONBURG, Va. – Inc. magazine announced its 25th annual Inc. 500 ranking of the fastest-growing private companies in the country. More than 1,700 private companies applied for the ranking and industry leading language-learning software company Rosetta Stone® was selected. This is the first time Virginia-based Rosetta Stone has been included in the 500 ranking.

Rosetta Stone is a revolutionary CD-ROM and online language-learning program acclaimed for the speed, power and effectiveness of its Dynamic Immersion™ method. Teaching 31 languages to millions of people in over 150 countries throughout the world, Rosetta Stone is the key to language-learning success.

"We are very pleased that our growth has been recognized by this prestigious ranking," said Tom Adams, Rosetta Stone CEO. "I am proud to be associated with smart thinking, hard working employees who make Rosetta Stone such an innovative organization."

The 2006 Inc. 500, as revealed in the September issue of Inc., reported the strongest group of companies the magazine has ever compiled, with aggregate revenue of $19.7 billion, up from $16.5 billion last year and $12.9 billion in 2000. Ranking 431 on the overall Inc. list, Rosetta Stone also posted the highest revenue among educational companies.

Most important, the 2006 Inc. 500 companies were engines of job growth, having created more than 90,000 jobs since those companies were founded.

"If you want to find out which companies are going to change the world, look at the Inc. 500," said Inc. Editor Jane Berentson. "These are the most innovative, dynamic, fast-growth companies in the nation, the ones coming up with solutions to some of our most intractable skills, creating systems that let us conduct business faster and easier, and manufacturing products we soon discover we can't live without. The Inc. 500 list is Inc. magazine's tribute to American business ingenuity and ambition."

Hottest Regions for Fastest-Growing Companies

Washington, D.C., is the top metropolitan area for the fourth consecutive year, with 43 of the fastest-growing companies, including Rosetta Stone. New York City is a close second and the biggest gainer, adding 17 companies for a total of 42 companies this year, followed by Los Angeles with 25 (down seven companies from last year), Boston with 24 (down three companies), and Atlanta with 20 (no change).

The Immigration Debate

At least 55 of this year's Inc. 500 CEOs were born outside the U.S., coming from countries as far-flung as Argentina, the United Kingdom, India, Russia, Pakistan, and the Philippines. The companies they run employ more than 14,300 workers and contributed more than $1.36 billion to the economy last year. Other countries may offer cheaper business costs (India, China) or more incentives for entrepreneurs (Ireland, Taiwan), but America still retains its land-of-opportunity glow for these CEOs.

Rosetta Stone CEO Tom Adams brings global perspective to his post as chief executive officer. A native of Sweden, Adams grew up in France and England, learning French and English through immersion. The international experience has proven exceptionally helpful for Adams as he leads Rosetta Stone through rapid growth in the United States and abroad.

Methodology

The 2006 Inc. 500 list measures revenue growth from 2002 through 2005. To qualify, companies had to be U.S.-based, privately held independent – not subsidiaries or divisions of other companies – as of December 31, 2005, and have at least $600,000 in net sales in the base year.

About Rosetta Stone

Rosetta Stone is a revolutionary language-learning program acclaimed for the speed, power and effectiveness of its Dynamic Immersion™ method. Teaching 31 languages to millions of people in over 150 countries throughout the world, Rosetta Stone is the key to language-learning success. The company was founded in 1992 on two core beliefs: that the natural way people learn languages as children remains the most successful method for learning new languages; and that interactive CD-ROM and online technology can replicate and activate that immersion method powerfully for learners of any age. The company is based in Harrisonburg, Va. For more information, visit www.RosettaStone.com.

About Inc. Magazine

Inc., http://www.inc.com, the only major business magazine dedicated exclusively to owners and managers of growing private companies, delivers real solutions for today's innovative company builders. It provides hands-on tools and market-tested strategies for managing people, finances, sales, marketing, and technology. Inc., a Mansueto Ventures LLC publication, inspires and informs, with cutting-edge coverage that reflects our readers' energy, brashness, and imagination.