Innovative Software Direct plc

December 21, 2010 10:12 ET

Statement re Letter of Agreement

21 December 2010

                            INNOVATIVE SOFTWARE DIRECT PLC ("ISD" or the "Company")
Further to the announcement of 30th November 2010, regarding the Letter of Intent from IA Global ("IAGI") to
acquire 100% of the "Company's" trading subsidiaries Powerdial Systems Limited and Powerdial Services Limited
(together "Powerdial") the Board announces the following:-

The Directors after careful consideration have accepted the formal offer from "IAGI"  The main terms and
conditions are broadly as stated in the announcement of October 13th 2010, and are as follows:

Under the terms of the Letter of Agreement, the ordinary share capital of "Powerdial" will be acquired for 2.4m
shares of "IAGI" common stock at $1 per share, including 672,350 shares to be issued to a 3rd party for the
provision of cash collateralisation to support the company's banking facilities

The agreement includes a prohibition term of 6 months

    *       Assumption of all 3rd Party ISD debt and elimination of any intercompany balances.
    *       Access to funding to embark on a UK/European acquisition strategy, in line with the publically stated
objectives of the building Group Revenues to $100m

    *       During the year to 31/12/2009, "Powerdial" contributed revenues of £1.73m ($2.8m)
The agreement reached by the Board and "IAGI" has been made following:

    *       Completion of Due Diligence

    *       Agreement of customary terms and conditions.

    *       Extensive consultation with its Legal and Corporate Advisors
The Board considers this represents the best possible value for the "Company" and its shareholders in the
current market.

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 Board of Directors accept responsibility for this announcement

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