MOSCOW, October 13 /PRNewswire/ --     ISDEF 2008, the seventh annual Independent Software Developers Forum
conference, took place September 26-29 at the Holiday Inn Vinogradovo
(http://www.isdef.org). The conference served as a forum for discussing
growth strategies in the software businesses, the challenges of marketing and
public relations in the IT sector, and the legal and managerial aspects of
operating an IT company. Also, for the first time in ISDEF history, an
investment section was held to attract investors to Russian IT projects.

Over 350 managers and owners of software and IT companies from
Russia, Ukraine, the Baltic States, the U.S., Germany and France attended the
conference. Companies from 20 Russian cities, including Moscow,
Saint-Petersburg, Novosibirsk, Perm and Kaliningrad, represented their
country.

During the conference, participants discussed questions
related to the development of the software market, including startups and
strategies for entering established markets, business development tactics and
the problems fast-growing companies experience, the managing of human
resources and staffing needs in the IT industry, software sales and marketing
techniques, and the legal aspects of operating a software company in Russia
and abroad. Several leading Russian IT companies presented reports, including
1S, Kaspersky Lab, Ashmanov and Partners, InfoWatch, Famatech, 1S-Bitrix,
Alawar Entertainment, Softkey, PROMT, Parallels and others.

The participation of representatives from federal agencies in
the section covering government regulation shows the state considers the IT
industry one of the key segments of the innovation-based economy of the 21st
Century. Specifically, the top managers of four major Russia IT associations
(ISDEF, RUSSOFT, NPSS and ICTIA), along with government representatives,
attended a roundtable session during the conference. The latter reaffirmed
their willingness to cooperate with Russian software developers. Professional
IT associations that are in a position to share the opinions of other market
participants will play a fundamental role in this process.

The pivotal point of the conference was an investment session
attended by over 10 investment funds, including ABRT, AddVenture, Almaz
Capital, Apaxys, Intel, Delta Capital, Oradell, ValueTech Advisers, ROSNO
Alliance, VTB and Finam, as well as private investors. Unlike traditional
theoretical roundtable meetings, this section was focused on reaching
practical goals. Investment fund representatives conducted one-on-one
negotiations with the top managers of 20 software companies seeking external
financing. The companies presented 15 software projects, three Internet
ventures and two games.

ISDEF chairman and Alawar CEO Alexander Lyskovsky said
investors found the event format compelling. "In the past, we watched a large
number of presentations one at a time and then discussed them behind closed
doors. This time, banks and investment fund reps were able to talk with
presenters and ask questions about revenue projections and general costs --
things not commonly discussed in public. We're sure the new format will help
software businesses and investors find each other and reach a point of
cooperation more efficiently." Since it can take up to 18 months to close a
deal from the initial point of contact between an investor and a prospective
partner, ISDEF is unable to report the results of the session at this time.

"Investments in the Russian IT industry last year reached
about $1 billion dollars," said Lubov Simonova-Emelyanova, head of IT
strategy and business development at FINAM. "The IT market is currently very
lucrative in terms of revenue and growth potential. Moving forward, separate
sessions at large events will provide the most effective format for
interaction and enable investors to review projects, discuss them and make
the right decision within a short period of time."

Another highlight of ISDEF 2008 was the presentation of
independent research focused on the Russian retail software market. According
to experts, the market produced $3.7 billion in revenues in 2007, while the
turnover of Russian companies abroad was $1.7 billion. Experts expect the
national software market to grow to $5 billion in 2008 and $7 billion in
2009. Lyskovsky confirmed that the information ISDEF collected matched the
results of similar research RUSSOFT and SoftKey carried out.

According to Famatech CEO Dmitry Kurashev, the task of
objectively estimating the actual size of the software market wasn't easy, as
most companies don't release their financial data. "Only the market
participants themselves could estimate the market, but we did it," said
Kurashev.

According to ISDEF, the division of software sales in Russia
is as follows: corporate clients purchase 65 percent, government agencies buy
20 percent and individuals acquire 15 percent.

Commenting on these numbers, Felix Muchnik, CEO of SoftKey,
said women were vital to the growth of the market. "Three years ago, female
consumers accounted for only 13 percent of the overall sales volume. Today,
their share is 29 percent. While women account for 50 percent of software
sales in western countries, a 100 percent increase in the number of women
purchasing software in Russia is a colossal improvement. The Russian software
market is finally becoming consumer-oriented."

Informational sponsorship is provided by PR Newswire Europe
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professional information distribution.

About ISDEF

http://www.isdef.org

Created in 2002, the non-profit Independent Software
Developers Forum focuses on representing and protecting the interests of
software developers and other players on the IT market. ISDEF unites
independent software developers, registrars, software distributors,
representatives of software archives and other members of the software
industry.

The main goals of the association are: improvement of the
software development and implementation process; growth and development of
the software e-commerce industry; and strengthening of the position of
Russian developers on the international software market.

For additional information, please contact the ISDEF
    conference press office:
    Tatiana Chernova
    Phone: +7-913-905-55-43
    Email: isdef2008@isdef.org