Information Services Group Announces New Credit Agreement

          Information Services Group Announces New Credit Agreement

Agreement offers more favorable terms and extends maturity to mid-2018

Also retires $1.1 million of convertible loan notes at 43% discount

PR Newswire

STAMFORD, Conn., May 7, 2013

STAMFORD, Conn., May 7, 2013 /PRNewswire/ -- Information Services Group, Inc.
(ISG) (NASDAQ: III), a leading technology insights, market intelligence and
advisory services company today announced it has executed a new $70 million,
five-year credit agreement with more favorable terms and extended maturity to
mid-2018.

"Our strengthening financial performance, driven by our evolving advisory
services and recurring revenue business model, has allowed us to take
advantage of the favorable environment in the capital markets to lower our
mandatory principal payments and borrowing costs over the life of the credit
facility while enhancing our operational flexibility," stated Michael P.
Connors, Chairman and CEO of ISG. "Coupled with a reduction in our overall
debt by nearly $10 million since mid-March of 2012, the enhanced terms under
the new credit facility will result in lower principal and interest payments
and provide for an extension of our debt maturity to mid-2018. This will
benefit our cash flow and earnings per share in the coming years and provide
us with additional flexibility with respect to growth opportunities and
shareholder-enhancing initiatives."

The new senior secured credit facility, arranged by Bank of America, is
comprised of a $45 million term loan facility and a $25 million revolving
credit facility. Interest rate spreads will range between 2.0%-3.5% over
LIBOR in the new credit facility depending on the Company's leverage ratio
compared to a fixed interest rate spread of 3.5% over LIBOR under its previous
credit facility. ISG borrowed $55 million at closing to refinance its
existing debt.

ISG also retired $1.144 million or 18% of Convertible Notes outstanding at a
45% discount ($650K to pay off $1.144 million). As such the Company will book
a non-operating gain of approximately $0.5 million in the second quarter.
This gain will be offset by an approximately $0.6 million noncash charge
associated with the early retirement of the existing term loan.

Detailed information regarding the credit agreement is included in the
company's Form 8-K filed today with the SEC.

About Information Services Group, Inc.

Information Services Group (ISG) (NASDAQ: III) is a leading technology
insights, market intelligence and advisory services company, serving
approximately 500 clients around the world to help them achieve operational
excellence. ISG supports private and public sector organizations to transform
and optimize their operational environments through research, benchmarking,
consulting and managed services, with a focus on information technology,
business process transformation, program management services and enterprise
resource planning. Clients look to ISG for unique insights and innovative
solutions for leveraging technology, the deepest data source in the industry,
and more than five decades of experience of global leadership in information
and advisory services. Based in Stamford, Conn., the company has more than 800
employees and operates in 21 countries. For additional information, visit
www.isg-one.com.

Forward-Looking Statements

This communication contains "forward-looking statements" which represent the
current expectations and beliefs of management of ISG concerning future events
and their potential effects. Statements contained herein including words such
as "anticipate," "believe," "contemplate," "plan," "estimate," "expect,"
"intend," "will," "continue," "should," "may," and other similar expressions,
are "forward-looking statements" under the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are not guarantees of
future results and are subject to certain risks and uncertainties that could
cause actual results to differ materially from those anticipated. Those risks
relate to inherent business, economic and competitive uncertainties and
contingencies relating to the businesses of ISG and its subsidiaries including
without limitation: (1) failure to secure new engagements or loss of important
clients; (2) ability to hire and retain enough qualified employees to support
operations; (3) ability to maintain or increase billing and utilization rates;
(4) management of growth; (5) success of expansion internationally; (6)
competition; (7) ability to move the product mix into higher margin
businesses; (8) general political and social conditions such as war, political
unrest and terrorism; (9) healthcare and benefit cost management; (10) ability
to protect ISG and its subsidiaries' intellectual property and the
intellectual property of others; (11) currency fluctuations and exchange rate
adjustments; (12) ability to successfully consummate or integrate strategic
acquisitions; (13) financial condition of various clients in the financial,
automotive and transportation sectors which account for significant portions
of ISG's revenues and may maintain sizable accounts receivables with ISG; and
(14) ability to achieve cost reductions and productivity improvements in any
future value creation plans. Certain of these and other applicable risks,
cautionary statements and factors that could cause actual results to differ
from ISG's forward-looking statements are included in ISG's filings with the
U.S. Securities and Exchange Commission. ISG undertakes no obligation to
update or revise any forward-looking statements to reflect subsequent events
or circumstances.

SOURCE Information Services Group

Contact: Barry Holt, 203-517-3110, Barry.Holt@isg-one.com, or Investor
Contact: David Berger, 203-517-3104, David.Berger@isg-one.com
 
Press spacebar to pause and continue. Press esc to stop.