Innovative Software Direct plc

October 13, 2010 09:00 ET

Letter of Intent

13 October 2010

                      INNOVATIVE SOFTWARE DIRECT PLC ("ISD" or the "Company")

                                         LETTER OF INTENT
The  Board  of ISD announces the receipt of a letter of intent from IA Global Inc ("IAGI"),  to
acquire  100% of its trading subsidiaries, PowerDial Systems,  Ltd,  a  VOIP  System Company and
PowerDial Services, Ltd, a VOIP Service Company ("PowerDial").

PowerDial reported revenues of $2.7 million in FY2009 and expects to grow in 2010 and later years.

Under  the terms of the Letter of Intent, PowerDial will be acquired for 2,400,000 shares of  IAGI
common  stock  with additional shares available for meeting certain performance  metrics  and  for
acquisition of additional VOIP/IT businesses in the U.K.

The  letter of intent is subject to (i) approval of the acquisition by the boards of ISD and  IAGI
(ii)  completion  of  due  diligence;  and, (iii) agreement to  customary  terms  and  conditions,
including  a  prohibition  on  issuance of new shares, options or warrants  by  the  parties.  The
acquisition is expected to close by 31 October.

The Directors will issue further announcements as they deem appropriate or necessary.

About IA Global, Inc.

IAGI,  whose  stock  currently trades on the OTCBB Exchange under the symbol "IAGI"  is  a  global
services  and  outsourcing company focused on growing existing businesses  and  expansion  through
global mergers and acquisitions.  IAGI is currently utilising its current business partnerships to
acquire growth businesses in its target sectors and markets. The company is also actively engaging
businesses  that  would  benefit  from its business expertise, knowledge  of  Asian  Markets,  and
technology infrastructure.

The Directors of ISD accept responsibility for this announcement.


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