Information Services 8K Quarterly Unaudited Pro Forma Condensed Combined Statement of Income | III 24 Jun 08

EXHIBIT 99.1

Information Services Group, Inc.

Quarterly Unaudited Pro Forma Condensed Combined Statement of Income

(in thousands, except share and per share data)

	2007
	Q1			Q2			Q3			Q4			FY

Revenue	$	43,368		$	42,199		$	43,936		$	43,149		$	172,652
Operating expenses
Direct costs and expenses for advisors	26,283			24,858			26,324			26,149			103,614
Selling, general and administrative	13,611			12,542			11,370			11,804			49,327
Depreciation	297			351			323			428			1,399
Amortization	1,828			2,212			2,212			1,975			8,227
Operating income	1,349			2,236			3,707			2,793			10,085
Interest income	339			327			329			444			1,439
Interest expense	(2,060		)	(2,047		)	(2,040		)	(2,553		)	(8,700		)
Foreign currency gains	23			197			135			64			419

Income (loss) before taxes	(349		)	713			2,131			748			3,243
Income tax (provision) benefit	166			(561		)	(628		)	(274		)	(1,297		)
Net income (loss)	$	(183	)	$	152		$	1,503		$	474		$	1,946

Weighted average shares outstanding:
Basic	39,217			39,217			39,217			36,602			38,556
Diluted	39,217			47,314			47,516			42,804			46,106

Net income (loss) per share:
Basic	$	(0.00	)	$	0.00		$	0.04		$	0.01		$	0.05
Diluted	$	(0.00	)	$	0.00		$	0.03		$	0.01		$	0.04

EBITDA(1)	$	3,497		$	4,996		$	6,377		$	5,260		$	20,130
Less:
Income taxes	(166		)	561			628			274			1,297
Interest expense (net of interest income)	1,721			1,720			1,711			2,109			7,261
Depreciation and amortization	2,125			2,563			2,535			2,403			9,626
Net income (loss)	$	(183	)	$	152		$	1,503		$	474		$	1,946
Plus:
Amortization	1,828			2,212			2,212			1,975			8,227
Non-cash stock compensation	—			—			—			170			170
Cash Earnings	$	1,645		$	2,364		$	3,715		$	2,619		$	10,343

Cash Earnings Per Share:
Basic	$	0.04		$	0.06		$	0.09		$	0.07		$	0.27
Diluted	$	0.04		$	0.05		$	0.08		$	0.06		$	0.22

(1) EBITDA is defined as earnings before interest, taxes, depreciation, and amortization

Information Services Group, Inc.

Unaudited Pro Forma Condensed Combined Statement of Income

For the Quarter Ended March 31, 2007

(in thousands, except share and per share data)

							Pro-Forma
	ISG			TPI			Adjustments				Combined

Revenue	$	—		$	43,368						$	43,368
Operating expenses
Direct costs and expenses for advisors	—			26,283							26,283
Selling, general and administrative	212			14,099			(700		)	(A)	13,611
Depreciation	2			295							297
Amortization	—			225			(225		)	(B)	1,828
							1,828			(B)
Operating income (loss)	(214		)	2,466			(903		)		1,349
Interest income	1,958			76			(1,955		)	(C)	339
							260			(D)
Interest expense	(3		)	(844		)	844			(E)	(2,060		)
							(1,914		)	(F)
							(143		)	(G)
Foreign currency gains	—			23							23

Income (loss) before taxes	1,741			1,721			(3,811		)		(349		)
Income tax (provision) benefit	(680		)	(678		)	1,524			(H)	166
Net income (loss)	$	1,061		$	1,043		$	(2,287	)		$	(183	)

Weighted average shares outstanding:
Basic											39,217
Diluted											39,217

Net loss per share:
Basic											$	(0.00	)
Diluted											$	(0.00	)

Earnings before interest, taxes, depreciation, and amortization (EBITDA)											$	3,497
Less:
Income taxes											(166		)
Interest expense (net of interest income)											1,721
Depreciation and amortization											2,125
Net loss											$	(183	)
Plus:
Amortization											1,828
Non-cash stock compensation											—
Cash Earnings											$	1,645

Cash Earnings Per Share:
Basic											$	0.04
Diluted											$	0.04

Notes:

(A) -	Adjustment to eliminate salaries and benefits associated with executives who were severed or whose salaries were reduced in connection with the acquisition
(B) -	Actual amortization for three months of new intangibles, net of intangible amortization prior to the acquisition
(C) -	Reduction of interest income earned on trust account
(D) -	Interest on ISG residual cash
(E) -	Eliminate interest expense on debt not assumed
(F) -	Adjust interest to actual rate for the first three months
(G) -	Amortization of actual debt issue costs for the first three months
(H) -	Adjust income taxes due to pro forma income adjustments based on the statutory tax rate

Information Services Group, Inc.

Unaudited Pro Forma Condensed Combined Statement of Operations

For the Quarter Ended June 30, 2007

(in thousands, except share and per share data)

							Pro-Forma
	ISG			TPI			Adjustments				Combined

Revenue	$	—		$	42,199						$	42,199
Operating expenses
Direct costs and expenses for advisors	—			24,858							24,858
Selling, general and administrative	327			12,812			(597		)	(A)	12,542
Depreciation	3			348							351
Amortization	—			219			(219		)	(B)	2,212
							2,212			(B)
Operating income (loss)	(330		)	3,962			(1,396		)		2,236
Interest income	3,297			51			(3,281		)	(C)	327
							260			(D)
Interest expense	—			(965		)	965			(E)	(2,047		)
							(1,909		)	(F)
							(138		)	(G)
Foreign currency gains	—			197							197

Income (loss) before taxes	2,967			3,245			(5,499		)		713
Income tax (provision) benefit	(1,367		)	(1,394		)	2,200			(H)	(561		)
Net income (loss)	$	1,600		$	1,851		$	(3,299	)		$	152

Weighted average shares outstanding:
Basic											39,217
Diluted											47,314

Net income per share:
Basic											$	0.00
Diluted											$	0.00

Earnings before interest, taxes, depreciation, and amortization (EBITDA)											$	4,996
Less:
Income taxes											561
Interest expense (net of interest income)											1,720
Depreciation and amortization											2,563
Net income											$	152
Plus:
Amortization											2,212
Non-cash stock compensation											—
Cash Earnings											$	2,364

Cash Earnings Per Share:
Basic											$	0.06
Diluted											$	0.05

Notes:

(A) -	Adjustment to eliminate salaries and benefits associated with executives who were severed or whose salaries were reduced in connection with the acquisition
(B) -	Actual amortization for three months of new intangibles, net of intangible amortization prior to the acquisition
(C) -	Reduction of interest income earned on trust account
(D) -	Interest on ISG residual cash
(E) -	Eliminate interest expense on debt not assumed
(F) -	Adjust interest to actual rate for the first three months
(G) -	Amortization of actual debt issue costs for the first three months
(H) -	Adjust income taxes due to pro forma income adjustments based on the statutory tax rate

Information Services Group, Inc.

Unaudited Pro Forma Condensed Combined Statement of Operations

For the Quarter Ended September 30, 2007

(in thousands, except share and per share data)

							Pro-Forma
	ISG			TPI			Adjustments				Combined

Revenue	$	—		$	43,936						$	43,936
Operating expenses
Direct costs and expenses for advisors	—			26,324							26,324
Selling, general and administrative	236			11,731			(597		)	(A)	11,370
Depreciation	2			321							323
Amortization	—			208			(208		)	(B)	2,212
							2,212			(B)
Operating income (loss)	(238		)	5,352			(1,407		)		3,707
Interest income	3,394			52			(3,377		)	(C)	329
							260			(D)
Interest expense	—			(932		)	932			(E)	(2,040		)
							(1,905		)	(F)
							(135		)	(G)
Foreign currency gains	—			135							135

Income (loss) before taxes	3,156			4,607			(5,632		)		2,131
Income tax (provision) benefit	(987		)	(1,894		)	2,253			(H)	(628		)
Net income (loss)	$	2,169		$	2,713		$	(3,379	)		$	1,503

Weighted average shares outstanding:											39,217
Basic											47,516
Diluted

Net income per share:
Basic											$	0.04
Diluted											$	0.03

Earnings before interest, taxes, depreciation, and amortization (EBITDA)											$	6,377
Less:
Income taxes											628
Interest expense (net of interest income)											1,711
Depreciation and amortization											2,535
Net income											$	1,503
Plus:
Amortization											2,212
Non-cash stock compensation											—
Cash Earnings											$	3,715

Cash Earnings Per Share:
Basic											$	0.09
Diluted											$	0.08

Notes:

(A) -	Adjustment to eliminate salaries and benefits associated with executives who were severed or whose salaries were reduced in connection with the acquisition
(B) -	Actual amortization for three months of new intangibles, net of intangible amortization prior to the acquisition
(C) -	Reduction of interest income earned on trust account
(D) -	Interest on ISG residual cash
(E) -	Eliminate interest expense on debt not assumed
(F) -	Adjust interest to actual rate for the first three months
(G) -	Amortization of actual debt issue costs for the first three months
(H) -	Adjust income taxes due to pro forma income adjustments based on the statutory tax rate

Information Services Group, Inc.

Unaudited Pro Forma Condensed Combined Statement of Operations

For the Quarter Ended December 31, 2007

(in thousands, except share and per share data)

							Pro-Forma
	ISG			TPI			Adjustments				Combined

Revenue	$	18,901		$	24,248						$	43,149
Operating expenses
Direct costs and expenses for advisors	12,246			13,903							26,149
Selling, general and administrative	6,634			6,645			(596		)	(A)	11,804
							(297		)	(B)
							(582		)	(C)
Profit share program	—			58,175			(58,175		)	(D)	—
Depreciation	181			247							428
Amortization	722			106			(106		)	(E)	1,975
							1,253			(E)
Operating income (loss)	(882		)	(54,828		)	58,503				2,793
Interest income	1,804			25			(1,805		)	(F)	444
							420			(F)
Interest expense	(1,171		)	(459		)	459			(G)	(2,553		)
							(1,299		)	(H)
							(83		)	(I)
Foreign currency gains/(losses)	84			(20		)					64

Income (loss) before taxes	(165		)	(55,282		)	56,195				748
Income tax (provision) benefit	(67		)	(982		)	775			(J)	(274		)
Net income (loss)	$	(232	)	$	(56,264	)	$	56,970			$	474

Weighted average shares outstanding:
Basic											36,602
Diluted											42,804

Net income per share:
Basic											$	0.01
Diluted											$	0.01

Earnings before interest, taxes, depreciation, and amortization (EBITDA)											$	5,260
Less:
Income taxes											274
Interest expense (net of interest income)											2,109
Depreciation and amortization											2,403
Net income											$	474
Plus:
Amortization											1,975
Non-cash stock compensation											170
Cash Earnings											$	2,619

Cash Earnings Per Share:
Basic											$	0.07
Diluted											$	0.06

Notes:

(A) -	Elimination of salaries and benefits associated with executives who were severed or whose salaries were reduced in connection with the acquisition
(B) -	Elimination of transaction bonuses associated with the acquisition
(C) -	Elimination of transaction costs incurred by TPI in connection with the acquisition
(D) -	Non-cash compensation expense related to vesting of Management Share Units and A2 Profit Participation Shares upon the change of control of TPI
(E) -	Amortization of new intangibiles, net of prior intangible amortization
(F) -	Elimination of interest income from cash used in the acquisition of TPI
(G) -	Elimination of interest expense related to prior TPI debt
(H) -	Interest expense for year two in connection with the financing for the acquisition
(I) -	Amortization related to $2.968 million of financing costs
(J) -	Adjustment of tax provision based on statutory rates

Information Services Group, Inc.

Unaudited Pro Forma Condensed Combined Statement of Income

For the Year Ended December 31, 2007

(in thousands, except share and per share data)

							Pro-Forma
	ISG			TPI			Adjustments				Combined

Revenue	$	18,901		$	153,751		$	—			$	172,652
Operating expenses
Direct costs and expenses for advisors	12,246			91,368			—				103,614
Selling, general and administrative	7,409			45,287			(2,490		)	(A)	49,327
							(297		)	(B)
							(582		)	(C)
Profit share program	—			58,175			(58,175		)	(D)	—
Depreciation	188			1,211			—				1,399
Amortization	722			758			(758		)	(E)	8,227
							7,505			(E)
Operating income (loss)	(1,664		)	(43,048		)	54,797				10,085
Interest income	10,453			204			(10,418		)	(F)	1,439
							1,200			(F)
Interest expense	(1,174		)	(3,200		)	3,200			(G)	(8,700		)
							(7,027		)	(H)
							(499		)	(I)
Foreign currency gains	84			335			—				419

Income (loss) before taxes	7,699			(45,709		)	41,253				3,243
Income tax (provision) benefit	(3,101		)	(4,948		)	6,752			(J)	(1,297		)
Net income (loss)	$	4,598		$	(50,657	)	$	48,005			$	1,946

Weighted average shares outstanding:
Basic											38,556
Diluted										(K)	46,106

Net income per share:
Basic											$	0.05
Diluted											$	0.04

Earnings before interest, taxes, depreciation, and amortization (EBITDA)											$	20,130
Less:
Income taxes											1,297
Interest expense (net of interest income)											7,261
Depreciation and amortization											9,626
Net income											$	1,946
Plus:
Amortization											8,227
Non-cash stock compensation											170
Cash Earnings											$	10,343

Cash Earnings Per Share:
Basic											$	0.27
Diluted											$	0.22

Notes:

(A) -	Elimination of salaries and benefits associated with executives who were severed or whose salaries were reduced in connection with the acquisition
(B) -	Elimination of transaction bonuses associated with the acquisition
(C) -	Elimination of transaction costs incurred by TPI in connection with the acquisition
(D) -	Non-cash compensation expense related to vesting of Management Share Units and A2 Profit Participation Shares upon the change of control of TPI
(E) -	Amortization of new intangibiles, net of intangible amortization prior to the acquisition
(F) -	Elimination of interest income from cash used in the acquisition of TPI
(G) -	Elimination of interest expense related to TPI debt prior to the acquisition
(H) -	Interest expense in connection with the financing for the acquisition
(I) -	Amortization related to $2.968 million of financing costs
(J) -	Adjustment of tax provision based on statutory rates
(K) -	The dilutive impact of 7.5 million warrants has been included as of January 1, 2007, although these warrants were not contingently exercisable until January 31, 2008.

Information Services (III) 8-KQuarterly Unaudited Pro Forma Condensed Combined Statement of Income