William Blair & Company Initiates Coverage of Information Services Group, Inc. With Outperform Rating

Business Wire, Oct 3, 2008

CHICAGO -- William Blair & Company initiated research coverage of Information Services Group, Inc. (Nasdaq:III) ($5.00) with an Outperform rating and an Aggressive Growth company profile. Information Services Group was formed in 2006 as a special purpose acquisition corporation and raised more than $250 million with the purpose of acquiring an information-based services company. In November 2007, the company completed the acquisition of TPI, a market leader in global sourcing advisory, to serve as its initial platform business.

Analyst Brandon Dobell estimated the company would generate diluted cash earnings per share of $0.58 in 2008 and $0.74 in 2009.

"We believe that Information Services Group, through the acquisition of TPI, will be in a strong position to take advantage of projected continued growth in global outsourcing services, as companies continue to transition critical IT and business processes to outside vendors and offshore locations," Dobell said. "ISG's business model provides an opportunity to drive attractive cash flow through strong returns on incremental invested capital and operating leverage. We believe the company's experienced management team is well positioned to drive operating margin improvement at TPI as well as expand the corporation's existing operating platform through strategic acquisitions of other information-based services companies."

William Blair & Company, L.L.C. intends to seek or expects to receive compensation for investment banking services from this company in the next 3 months.

William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.

William Blair & Company, L.L.C. is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. We place a high value on the enduring nature of our client relationships, the quality of our products and services, and the continuity and integrity of our people. William Blair & Company's offices include Chicago, Boston, London, New York, San Francisco, Shanghai, Tokyo, and Zurich. For more information, please visit www.williamblair.com.

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