Information Services Group Inc. — Director's Dealing 2008

Jul 3, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Information Services Group Inc. (III)
CIK: 0001371489
Period of Report: 2008-07-01

Reporting Person: SEMLER ERIC (10% Owner)
Reporting Person: TCS Capital GP, LLC (10% Owner)
Reporting Person: TCS Capital Investments, L.P. (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-07-01	Common Stock	S	19100	$4.80	Disposed	4594300	Indirect
2008-07-01	Common Stock (Units)	S	177900	—	Disposed	4594300	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-07-01	Common Stock Warrants (Units) (right to buy)	$6.00	S	177900	Disposed	2011-01-31	Common Stock (177900)	Indirect

Footnotes

F1: The filing of this Form 4 shall not be construed as an admission that TCS Capital Investments, L.P. ("TCS Offshore"), TCS Capital GP, LLC ("TCS") or Eric Semler, the managing member of TCS, is or was for the purposes of Section 16(a) of the Securities Exchange act of 1934, as amended, or otherwise the beneficial owner of any of the common stock, par value $0.001 per share (the "Common Stock"), of Information Services Group, Inc. (the "Issuer") owned by TCS Capital, L.P., TCS Capital II, L.P., and TCS Offshore (collectively, the "Funds"). Pursuant to Rule 16a-1, the reporting persons disclaim such beneficial ownership beyond their pecuniary interest.

F2: The Funds hold 3,979,300 of their shares of Common Stock in the form of units of the Issuer (the "Units"). Each Unit consists of one share of Common Stock and one redeemable common stock purchase warrant (the "Warrants"). The Funds also hold 615,000 shares of Common Stock directly.

F3: TCS Offshore holds Common Stock and Units for its own account. TCS holds indirectly Common Stock and Units for the accounts of the Funds, of which TCS is the general partner. TCS receives an allocation of a portion of net profits from and owns a partnership interest in the Funds. Mr. Semler reports the shares held indirectly by TCS because, as the manager of TCS, at the time of sale, Mr. Semler controlled the disposition and voting of the securities.

F4: This Form 4 is being filed to report the sale of Common Stock and Units by TCS Offshore to the other Funds. Therefore, after the transactions reported herein, the amount of securities beneficially owned in the aggregate by the Reporting Persons did not change. However, following the transactions reported herein, TCS Offshore holds 360,600 shares of Common Stock and 2,333,300 Units.

F5: The Units were sold at a price of $5.15 per Unit.