Caneum (CANM) 8-K Entry into a Material Definitive Agreement

EXHIBIT 99.4

Caneum, Inc. Completes Acquisition of Continuum Systems Pvt. Ltd.

Accretive acquisition results in expanded operations worldwide, including Caneum Asia Pacific Pte. Ltd. in Singapore and Caneum India Pvt. Ltd. in India

NEWPORT BEACH, California — (MARKET WIRE) — January 4, 2007 — Caneum, Inc. (OTC BB: CANM — News), a global provider of business process and information technology outsourcing services, today announced that effective December 31, 2006, it has closed its acquisition of Continuum Systems Pvt. Ltd. of India.

Alan Knitowski, Chairman of Caneum, commented, “We are extremely pleased to have closed our acquisition of Continuum Systems Pvt. Ltd. and look forward to continuing to expand our international outsourcing resources and capabilities. Both the Indian and Asian markets continue to grow aggressively and we expect that our new multi-country delivery footprint will provide a strong foundation to further our business model of growing via organic sales and additional accretive acquisitions.”

The Company has initiated activities in India to rename Continuum Systems Pvt. Ltd. to Caneum India Pvt. Ltd. and expects to complete this process within the next 60 days. Jesper Lindorff, former Managing Director of Continuum Systems Pvt. Ltd., is now Managing Director and CEO of the Company’s Indian operations and all of Continuum’s approximately 100 employees have been retained.

Continuum Pvt. Ltd. was generating both positive operating cash flow and net income at closing. On an un-audited basis, it generated approximately $384K in revenues and $191K in gross profit for the quarter ended September 30, 2006. On an annualized basis, this quarterly performance equated to approximately $1.54M in revenue and approximately $764K in gross profit.

Full details of the acquisition can be found in the 8-K now on file with the SEC and submitted in parallel to this release.

About Caneum, Inc.:

Caneum, Inc. is a global provider of business process and information technology outsourcing services across vertical industries, including technology, energy, government, transportation, financial services, education and healthcare. The Company provides a suite of business strategy and planning capabilities to assist companies with their “make versus buy” decisions in the areas of data, network, product development, product maintenance and customer support, and fulfills its services in-house, on-shore, near-shore and off-shore, depending on the business goals and objectives of its global customers. In parallel, the Company is opportunistically pursuing accretive acquisitions within its core outsourcing product and service suite in order to broaden its core capabilities, expand its customer base and supplement its organic growth. For more information, please visit the Company’s web site at http://www.caneum.com.

About Continuum Systems Pvt. Ltd.:

Continuum Systems Pvt. Ltd. is an approximately 100-person off-shore outsourcing company founded in 2002 and based in New Delhi (Gurgaon), India. The Company provides (1) application services, including development, integration, re-engineering, migration and maintenance, (2) customer support, including e-mail, chat and voice, (3) business process outsourcing, including technical support, data conversion and data mining, and (4) e-services,

including web design, search engine optimization and e-commerce. The Company’s customer base includes companies from Sweden, Switzerland, the United Kingdom, Nigeria, India, Mauritius, Indonesia and the United States. For more information, please visit the Company’s web site at www.continuum-systems.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, the risk factors noted in the Company’s filings with the United States Securities and Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company’s products and services; the Company’s ability to gain market acceptance for its products and services; the Company’s ability to fund its operational growth; the Company’s ability to attract and retain skilled personnel; the Company’s ability to diversify its revenue streams and customer concentrations; and the Company’s reliance on third-party suppliers.

Contact:
	Caneum, Inc. Gary Allhusen, EVP, COO & Principal Financial Officer (949) 273-4000 info@caneum.com
	or
	TMS Capital, LLC Thomas Sauve (Investors / Media) (646) 245-2465 tms@tmscapital.com

Continuum Systems Private Limited, India

Condensed Consolidated Balance Sheets
As of March 31, 2006 and March 31, 2005

ASSETS

	March 31,			March 31,
	2006			2005
	(Audited)			(Audited)
CURRENT ASSETS
Cash and cash equivalents, including restricted cash of $35,363 as of March 31, 2006	$	73,388		$	70,314
Accounts receivable, net of allowance for doubtful accounts respectively		279,443			134,968
Unbilled receivables		—			—
Prepaid assets — related parties		33,488			23,075
Other prepaid expenses and current assets		24,062			7,981
TOTAL CURRENT ASSETS		410,381			236,338
FIXED ASSETS
Property and Equipment		183,539			80,434
		183,539			80,434
Less accumulated depreciation		(51,201	)		(17,378	)
TOTAL FIXED ASSETS		132,338			63,056
INTANGIBLE ASSETS		—			—
Less accumulated amortization		—			—
		—			—
TOTAL ASSETS	$	542,719		$	299,394

Continuum Systems Private Limited, India
Condensed Consolidated Balance Sheets (continued)
As of March 31, 2006 and March 31, 2005

LIABILITIES AND STOCKHOLDERS’ EQUITY

	March 31,		March 31,
	2006		2005
	(Audited)		(Audited)
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	28,361	$	27,501
Credit line		1,285		2,956
Accrued payroll and related expenses		17,074		18,974
Income tax payable		4,291		700
Purchase price installment payable		11,253		—
TOTAL CURRENT LIABILITIES		62,264		50,131
LONG TERM LIABILITIES
Deferred tax liability		—		—
Purchase price installment payable		22,506		—
COMMITMENTS AND CONTINGENCIES		—		—
STOCKHOLDERS’ EQUITY
Common stock, 100,000 shares authorized at $.2246 par value: 94640 Shares issued and outstanding, respectively		21,301		21,748
Preferred stock,		—		—
Additional paid in capital		—		—
Accumulated Retained Earnings		436,648		27,515
Deferred compensation		—		—
TOTAL STOCKHOLDERS’ EQUITY		457,949		249,263
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	542,719	$	299,394

Continuum Systems Private Limited, India

Condensed Consolidated Statements of Operations

	March 31,		March 31,
	2006		2005
	(Audited)		(Audited)
REVENUE	$	1,361,074	$	645,150
COST OF REVENUE		803,319		266,743
GROSS PROFIT		557,755		378,407
OPERATING EXPENSES		340,465		185,018
INCOME FROM OPERATIONS		217,290		193,389
OTHER INCOME (EXPENSE)
Interest expense		—		—
Interest income		29		29
TOTAL OTHER INCOME
(EXPENSE)		29		29
INCOME BEFORE INCOME TAX		217,319		193,418
INCOME TAX EXPENSE		3,974		700
NET INCOME	$	213,345	$	192,718
EARNING PER COMMON SHARE —
Basic	$	2.25	$	2.03

Continuum Systems Private Limited, India

Condensed Consolidated Balance Sheets
As of September 30, 2006 and September 30, 2005

ASSETS

	September 30,			September 30,
	2006			2005
	(Unaudited)			(Unaudited)
CURRENT ASSETS
Cash and cash equivalents, including restricted cash of $163,688 as of September 30, 2006	$	226,451		$	165,130
Accounts receivable, net of allowance for doubtful accounts respectively		271,787			203,395
Unbilled receivables		—			—
Prepaid assets — related parties		20,588			15,831
Other prepaid expenses and current assets		30,634			9,696
TOTAL CURRENT ASSETS		549,460			394,052
FIXED ASSETS
Property and Equipment		199,363			93,729
		199,363			93,729
Less accumulated depreciation		(70,070	)		(13,672	)
TOTAL FIXED ASSETS		129,293			80,057
INTANGIBLE ASSETS		—			—
		—			—
Less accumulated amortization		—			—
		—			—
TOTAL ASSETS	$	678,753		$	474,109

Continuum Systems Private Limited, India
Condensed Consolidated Balance Sheets (continued)
As of September 30, 2006 and September 30, 2005

LIABILITIES AND STOCKHOLDERS’ EQUITY

	September 30,		March 30,
	2006		2005
	(Unaudited)		(Unaudited)
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	22,809	$	17,480
Credit line		2,956		2,956
Accrued payroll and related expenses		19,309		15,524
Income tax payable		—		—
Purchase price installment payable		8,153		—
TOTAL CURRENT LIABILITIES		53,227		35,960
LONG TERM LIABILITIES
Deferred tax liability		—		—
Purchase price installment payable		21,808		—
COMMITMENTS AND CONTINGENCIES		—		—
STOCKHOLDERS’ EQUITY
Common stock, 100,000 shares authorized at $.22 par value: 94640 Shares issued and outstanding, respectively		20,641		21,616
Preferred stock,		—		—
Additional paid in capital		—		—
Accumulated Retained Earnings		583,077		416,533
Deferred compensation		—		—
TOTAL STOCKHOLDERS’ EQUITY		603,718		438,149
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	678,753	$	474,109

Continuum Systems Private Limited, India

Condensed Consolidated Statements of Operations

	September 30,		September 30,
	2006		2005
	(Unaudited)		(Unaudited)
REVENUE	$	696,244	$	709,087
COST OF REVENUE		395,070		390,579
GROSS PROFIT		301,174		318,508
OPERATING EXPENSES		340,465		128,117
INCOME FROM OPERATIONS		159,716		190,391
OTHER INCOME (EXPENSE)
Interest expense		—		—
Interest income		—		—
TOTAL OTHER INCOME
(EXPENSE)		—		—
INCOME BEFORE INCOME TAX		159,716		190,391
INCOME TAX EXPENSE		—		—
NET INCOME	$	159,716	$	190,391
EARNING PER COMMON SHARE —
Basic	$	1.68	$	2.00

Continuum Systems Private Limited, India
Balance Sheets
For the period ending September 30^th,

										Figures in US$
	Caneum			Continuum			Consolidate			Caneum
	September 30,			September 30,			September 30,			December 31,
	2006			2006			2006			2005
Particulars	(Unaudited)			(Unaudited)			(Unaudited)
CURRENT ASSETS
Cash and cash equivalents, including restricted cash of $349,088 as of September 30, 2006		469,402			226,451			695,853			99,760
Accounts receivable, net of allowance for doubtful accounts of $97,454 and $79,454, respectively		1,658,650			271,787			1,930,437			469,074
Unbilled receivables		72,325			—			72,325			—
Prepaid assets — related parties (Note 3)		—			20,588			20,588			68,750
Other prepaid expenses and current assets		34,054			30,634			64,688			51,099
TOTAL CURRENT ASSETS		2,234,431			549,460			2,783,891			688,683
FIXED ASSETS
Property and Equipment		22,444			199,363			221,807			—
Software		77,962			—			77,962			16,128
		100,406			199,363			299,769			16,128
Less accumulated depreciation		(53,635	)		(70,070	)		(123,705	)		(1,571	)
TOTAL FIXED ASSETS		46,771			129,293			176,064			14,557
INTANGIBLE ASSETS (Note 4 and 7)
Employment contracts		78,000			—			78,000			—
Customer contracts/relationships		670,000			—			670,000			—
Licenses		75,000			—			75,000			—
Trademarks and logos		90,000			—			90,000			—
Goodwill		1,612,500			17,282			1,629,782			—
		2,525,500			17,282			2,542,782			—
Less accumulated amortization		(117,358	)		—			(117,358	)		—
TOTAL INTANGIBLE ASSETS		2,408,142			17,282			2,425,424			—
TOTAL ASSETS		4,689,344			696,035			5,385,379			703,240

Note 1:	The data/table and its format including details thereof is taken as per table appearing at Page 03 of the word file named C70092 10QSB.doc
Note 2:	US $1 = INR 45.96

									Figures in US$
	Caneum			Continuum		Consolidate			Caneum
	September 30,			September 30,		September 30,			December 31,
	2006			2006		2006			2005
	(Unaudited)			(Unaudited)		(Unaudited)
CURRENT LIABILITIES
Accounts payable and accrued liabilities		640,490			22,809		663,299			284,656
Credit line		149,360			2,956		152,316			6,833
Accrued payroll and related expenses		163,968			19,309		183,277			25,839
Income tax payable		1,500			—		1,500			—
Purchase price installment payable (Note 7)		803,814			8,153		811,967			—
TOTAL CURRENT LIABILITIES		1,759,132			53,227		1,812,359			317,328
LONG TERM LIABILITIES
Deferred tax liability		9,300			—		9,300			—
Purchase price installment payable (Note 7)		661,697			21,808		683,505			—
COMMITMENTS AND CONTINGENCIES (Notes 6, 7 and 10)		—			—		—			—
TOTAL LONG TERM LIABILITIES		670,997			21,808		692,805			—
STOCKHOLDERS’ EQUITY
Common stock, 100,000,000 shares authorized at $.001 par value:
6,792,325 and 5,386,991 shares issued and outstanding, respectively		6,860			621,000		627,860			5,386
Preferred stock, 20,000,000 shares authorized at $.001 par value:
3,632,500 and 0 shares issued and outstanding, respectively		3,632			—		3,632			—
Additional paid in capital		6,279,383			—		6,279,383			3,434,328
Accumulated (deficit)/Reserves		(3,990,660	)		—		(3,990,660	)		(3,013,802	)
Deferred compensation		(40,000	)		—		(40,000	)		(40,000	)
TOTAL STOCKHOLDERS’ EQUITY		2,259,215			621,000		2,880,215			385,912
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		4,689,344			696,035		5,385,379			703,240

Note 1:	The data/table and its format including details thereof is taken as per table appearing at Page 04 of the word file named C70092 10QSB.doc
Note 2:	US $1 = INR 45.96

	Three months ended																	Nine months ended
	Caneum			Continuum			Consolidate			Caneum			Continuum		Consolidate			Caneum			Continuum			Consolidate			Caneum			Continuum			Consolidate
	September 30,			September 30,			September 30,			September 30,			September 30,		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2006			2006			2006			2005			2005		2005			2006			2006			2006			2005			2005			2005
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)		(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
REVENUE		2,127,211			371,972			2,499,183			739,417			331,363		1,070,780			5,027,337			1,037,176			6,064,513			1,379,321			955,670			2,334,991
COST OF REVENUE		1,575,373			186,023			1,761,396			606,159			197,538		803,697			3,679,398			590,168			4,269,566			1,082,161			477,809			1,559,970
GROSS PROFIT		551,838			185,949			737,787			133,258			133,825		267,083			1,347,939			447,008			1,794,947			297,160			477,861			775,021
OPERATING EXPENSES		730,995			82,227			813,222			340,000			79,451		419,451			2,255,210			257,497			2,512,707			1,382,825			228,186			1,611,011
PROFIT/(LOSS) FROM OPERATIONS		(179,157	)		103,722			(75,435	)		(206,742	)		54,374		(152,368	)		(907,271	)		189,511			(717,760	)		(1,085,665	)		249,675			(835,990	)
OTHER INCOME (EXPENSE) Interest expense		(39,307	)		(767	)		(40,074	)		—			—		—			(78,563	)		(2,404	)		(80,967	)		—			—			—
Interest income		4,092			—			4,092			273			—		273			9,775			—			9,775			1,552			—			1,552
TOTAL OTHER INCOME (EXPENSE)		(35,215	)		(767	)		(35,982	)		273			—		273			(68,788	)		(2,404	)		(71,192	)		1,552			—			1,552
PROFIT/(LOSS) BEFORE INCOME TAX		(214,372	)		102,955			(111,417	)		(206,469	)		54,374		(152,095	)		(976,059	)		187,107			(788,952	)		(1,084,113	)		249,675			(834,438	)
INCOME TAX EXPENSE		—			—			—			—			—		—			(800	)		(3,917	)		(4,717	)		(800	)		(700	)		(1,500	)
NET PROFIT/(LOSS)		(214,372	)		102,955			(111,417	)		(206,469	)		54,374		(152,095	)		(976,859	)		183,190			(793,669	)		(1,084,913	)		248,975			(835,938	)
PROFIT/(LOSS) PER COMMON SHARE-
Basic and Diluted		($0.03	)	$	0.11			($0.01	)		($0.04	)	$	0.57		($0.03	)		($0.16	)	$	0.20			($0.11	)		($0.24	)	$	2.62			($0.18	)
SHARES USED IN EARNINGS PER SHARE CALCULATIONS
WEIGHTED AVERAGE COMMON SHARES- Basic and Diluted		6,614,031			913,235			7,527,266			4,738,032			94,864		4,832,896			6,062,621			913,235			6,975,856			4,559,043			94,864			4,653,907

Note 1:	The data/table and its format including details thereof is taken as per table appearing at Page 05 of the word file named C70092 10QSB.doc
Note 2:	US $1 = INR 45.96
Note 3:	For calculation of EPS, number of shares of Continuum have been as is consolidated with number of shares of Caneum.