III

Business Context and Reporting Period

Company: Information Services Group, Inc. (ISG)
Reporting Period: Quarter and six months ended June 30, 2007
Status: Development stage corporation (Special Purpose Acquisition Company or "SPAC")
Business Model: Formed to acquire one or more operating businesses in the information services industry. As of the reporting date, the Company had no operating revenue and was actively pursuing a business combination.

Key Financial Metrics

Note: Net income is derived primarily from interest income earned on the Trust Account ($5,255,016 for six months) less operating expenses and taxes.

Material Changes vs. Prior Period

• Capitalization: The Company consummated its Initial Public Offering (IPO) and a concurrent private placement on February 6, 2007. Gross proceeds were approximately $265.25 million, with net proceeds of $254.55 million.
• Liquidity: Cash and cash equivalents increased from $88,911 at December 31, 2006, to $256.3 million at June 30, 2007. Approximately $254.05 million was deposited into a Trust Account.
• Equity Structure: Shares outstanding increased from 8,085,937 to 40,429,687. This includes 6,468,750 shares subject to possible redemption by public stockholders.
• Liabilities: A deferred underwriting fee of $8,262,500 was recorded as a long-term liability, payable upon the consummation of a business combination.
• Acquisition Activity: On April 24, 2007, the Company signed a definitive agreement to acquire TPI Advisory Services America, Inc. (TPI). Deferred acquisition costs of approximately $1.02 million were capitalized.

Outlook, Risks, and Management Commentary

Proposed Acquisition (TPI)

The Company has entered into a Purchase Agreement to acquire 100% of TPI for a total consideration of $280 million in cash plus TPI's cash balance ($5 million). The transaction is subject to stockholder approval and financing conditions.

• Financing: The purchase price will be funded by Trust Account proceeds, management investment, and anticipated debt financing from Deutsche Bank Securities Inc.
• Timeline: If the closing does not occur within six months of the agreement (by October 24, 2007), the Company must pay an additional $50,000 per day until closing.
• Redemption Risk: Public stockholders may redeem their shares for cash. If 20% or more redeem, the transaction may be terminated. As of June 30, 2007, the redemption value was approximately $7.85 per share.

Liquidity and Capital Resources

The Company holds approximately $2.27 million outside the Trust Account to fund operating expenses and acquisition costs. Management believes this, combined with interest income released from the Trust, is sufficient to operate until February 6, 2009, if no business combination is consummated.

Risks and Contingencies

• Failure to Close: If the TPI transaction fails, the Company must find another target or liquidate the Trust Account within 18 to 24 months of the IPO.
• Financing Risk: The transaction is contingent on obtaining debt financing commitments; failure to secure replacement financing within 45 days of a commitment termination allows TPI to terminate the agreement.
• Development Stage: The Company has no operating history and is subject to risks associated with development stage enterprises.

Investor Verification Checklist

• Stockholder Approval: Verify the outcome of the stockholder vote required to approve the TPI acquisition.
• Financing Commitment: Confirm the status of the debt financing arrangement with Deutsche Bank Securities Inc.
• Redemption Levels: Monitor the percentage of public shares redeemed, as exceeding 20% could terminate the transaction.
• Deferred Acquisition Costs: Track the $1.02 million in deferred costs; if the deal fails, these will be expensed immediately.
• Trust Account Balance: Verify the final balance available for the transaction after accounting for taxes and any redemptions.