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iSoftStone Reports Financial and Operating Results for the Third Quarter 2013 BEIJI !

" o#$ 2%" 2013 &'R e(s(ire& )) iSoftStone *oldings +i,ited -.iSoftStone. or .the /o,pan0". 1SE2 ISS3" a leading /hina)4ased IT ser#ices pro#ider" toda0 reported its unaudited financial and operating results for the third 5uarter ended Septe,4er 30" 2013$ Third quarter 2013 results

et re#enues increased 12$67 to 8111$3 ,illion in the third 5uarter 2013 fro, 869$% ,illion in the third 5uarter 2012$ !ross profit decreased 1:$07 to 826$: ,illion in the third 5uarter 2013 fro, 83;$< ,illion in the third 5uarter 2012$ et loss in the third 5uarter 2013 (as 8<$2 ,illion co,pared (ith a net inco,e of 8<$: ,illion in the third 5uarter 2012$ on)!==' net loss in the third 5uarter 2013 -note 13 (as 81$6 ,illion co,pared (ith a net inco,e of 810$; ,illion in the third 5uarter 2012$ >iluted earnings per =,erican >epositar0 Share -.=>S.3 (ere a loss of 80$13 in the third 5uarter 2013 and an inco,e of 80$13 in the third 5uarter 2012$ Each =>S represents 10 ordinar0 shares$ on)!==' diluted earnings per =>S -note 13 (ere a loss of 80$0; in the third 5uarter 2013 co,pared (ith an inco,e of 80$19 in the third 5uarter 2012$ Total nu,4er of e,plo0ees increased 2<$07 to 1<"<02 as of Septe,4er 30" 2013 fro, 13"63< as of Septe,4er 30" 2012$

First nine months 2013 results


et re#enues increased 13$37 to 8313$9 ,illion in the first nine ,onths 2013 fro, 82<%$6 ,illion in the first nine ,onths 2012$ !ross profit increased 1$<7 to 86;$3 ,illion in the first nine ,onths 2013 fro, 862$< ,illion in the first nine ,onths 2012$ et loss in the first nine ,onths 2013 (as 8%$1 ,illion co,pared (ith a net inco,e of 81;$; ,illion in the first nine ,onths 2012$ on)!==' net inco,e -note 13 decreased %1$:7 to 810$0 ,illion in the first nine ,onths 2013 fro, 82:$6 ,illion in the first nine ,onths 2012$ >iluted earnings per =>S (ere a loss of 80$11 in the first nine ,onths 2013 and an inco,e of 80$2: in the first nine ,onths 2012$ Each =>S represents 10 ordinar0 shares$ on)!==' diluted earnings per =>S -note 13 (ere 80$1< in the first nine ,onths 2013 co,pared (ith 80$;; in the first nine ,onths 2012$

?r$ T$@$ +iu" iSoftStoneAs /hair,an and /hief EBecuti#e Officer" said" .The third 5uarter (as challenging for us" especiall0 in costs$ Our re#enues gre( 12$67 fro, last 0earAs third 5uarter" (ith the highest gro(th in IT ser#ices" up 21$27 in re#enues" (hile /onsulting C Solutions ser#ices re#enues (ere do(n 9$;7 ,ainl0 due to lo(er #olu,e in S?=RT 4usiness as (e (orDed off so,e of its 4acDlog$ *igher 4usiness #olu,e ca,e

fro, our largest co,,unications client and /hina 4anDing clients" plus ,odest gro(th fro, our E$S$ 4usiness" 4ut (as partl0 offset 40 lo(er re#enues in the European and Japanese ,arDets that continued to decline during the 5uarter$ .@e ha#e re#ie(ed all significant current and future identifia4le factors in our 4usiness" including structural changes in the industr0 and glo4al econo,ies" geographic ,arDets" our ser#ice lines" and the client #erticals that (e ha#e chosen to ser#e$ @e ha#e concluded that our strategic direction re,ains #alid2 s,ooth effecti#e operations in our Foint #enture (ith *ua(ei" gaining additional ne( 4usiness in /hinaAs 4anDing" financial ser#ices" and insurance sector" and continuing to in#est in our S?=RT 4usiness capa4ilities and e,erging technologies that include 4ig data" ,o4ile" and cloud co,puting to support our clientsA gro(th and accelerate their 4usiness eBpansions$ In the short run" (e ,ust focus on continuing to deli#er outstanding ser#ice to custo,ers (hile ,itigating cost increases and si,ultaneousl0 i,pro#ing 5ualit0" effecti#eness" efficienc0" and ,argins$. Results of operations for the third quarter 2013 Net revenues et re#enues increased 812$9 ,illion or 12$67 to 8111$3 ,illion in the third 5uarter 2013 fro, 869$% ,illion in the third 5uarter 2012" ,ainl0 due to relati#el0 stronger de,and for IT ser#ices fro, clients in !reater /hina" partiall0 offset 40 declining de,and fro, clients in Europe and Japan and slo(er gro(th fro, clients in the Enited States$ Net revenues by service line @e deri#e net re#enues 40 pro#iding an integrated suite of IT ser#ices and solutions" including -a3 IT ser#ices" (hich pri,aril0 includes application de#elop,ent and ,aintenance -.=>?.3" as (ell as RC> ser#ices and infrastructure and soft(are ser#ices" -43 /onsulting C Solutions" and -c3 Business 'rocess Outsourcing -.B'O.3" ser#ices$ The follo(ing ta4le sho(s our net re#enues 40 ser#ice line$ ES8 in thousands" eBcept 7 IT ser#ices =>? RC> Infrastructure and 33"66 % 2;"<% 3 2"210 3;$:7 2:$17 2$27 ;;"2%3 29":%% 1"0<0 36$97 2:$<7 1$07 2012Q3 7 2013Q3 7

soft(are IT ser#ices" total /onsulting C Solutions B'O ser#ices Total net re#enues %0"6% 6 3;"0: % 3":39 69":% 3 %1$97 3;$%7 3$%7 100$0 7 <3"966 31"210 %"211 111"32 0 %%$:7 29$07 :$:7 100$0 7

et re#enues fro, IT ser#ices increased 812$6 ,illion or 21$27 to 8<3$6 ,illion in the third 5uarter 2013 fro, 8%1$0 ,illion in the third 5uarter 2012 ,ainl0 due to increased 4usiness #olu,e fro, our largest co,,unications client and 4anDing clients in /hina$ et re#enues fro, /onsulting C Solutions decreased 82$9 ,illion or 9$;7 to 831$2 ,illion in the third 5uarter 2013 fro, 83;$1 ,illion in the third 5uarter 2012" ,ainl0 due to decreased de,and fro, a technolog0 client in /hina and a co,,unications client in E$S$ et re#enues fro, B'O ser#ices increased <:$%7 to 8%$2 ,illion in the third 5uarter 2013 fro, 83$: ,illion in the third 5uarter 2012 ,ainl0 due to ne( proFect (ins$ Net revenues by geographic markets @e classif0 our net re#enues 40 the follo(ing geographic ,arDets2 !reater /hina -(hich includes ,ainland /hina" Tai(an" *ong Gong" and ?acau3 and !lo4al -(hich includes the Enited States" Europe" Japan" and others3" 4ased on the head5uarters locations of our clients$ The follo(ing ta4le sho(s our net re#enues 40 geographic ,arDets$ ES8 in thousands" eBcept 7 2012Q3 !reater /hina !lo4al2 Enited States Europe Japan 21"0% % <"1<: :"<;3 21$;7 <$37 :$97 22"1;% ;"<3< :";1: 16$67 ;$37 ;$67 %;"20 0 7 %:$17 2013Q3 <9"201 7 <0$27

Others !lo4al total Total net re#enues

3<6 3;"3% 3 69":% 3

0$;7 3;$67 100$0 7

921 33"116 111"32 0

0$<7 26$97 100$0 7

Reflecting the different conditions in different ,arDets" in the third 5uarter 2013" net re#enues in !reater /hina continued to gro( faster than the net re#enues in the !lo4al ,arDet$ Our net re#enues fro, !reater /hina clients increased 81;$0 ,illion or 21$97 to 8<9$2 ,illion in the third 5uarter 2013 fro, 8%;$2 ,illion in the third 5uarter 2012 ,ainl0 due to increased 4usiness #olu,e fro, our largest co,,unications client and 4anDing clients in /hina and continuous re#enues generated fro, a /hina pu4lic sector consulting C solutions proFect (on in the third 5uarter 2013$ et re#enues fro, E$S$ clients increased 81$1 ,illion or :$17 to 822$1 ,illion in the third 5uarter 2013 fro, 821$1 ,illion in the third 5uarter 2012 ,ainl0 due to increased de,and fro, t(o technolog0 clients" partiall0 offset 40 reduced de,and fro, a ,aFor co,,unications client in the E$S$ ,arDet$ et re#enues fro, European clients decreased 3;$07 to 8;$< ,illion in the third 5uarter 2013 fro, 8<$2 ,illion in the third 5uarter 2012 due to the stop of 4usiness relationships (ith t(o European co,,unication clients$ et re#enues fro, Japanese clients decreased 80$3 ,illion or :$<7 to 8:$; ,illion in the third 5uarter 2013 fro, 8:$< ,illion in the third 5uarter 2012$ Net revenues by client industry @e focus on ser#ing clients in four target industr0 #erticals" each (ith large and gro(ing long)ter, de,and for IT ser#ices and solutions2 technolog0H co,,unicationsH 4anDing" financial ser#ices and insurance -.BFSI.3H and energ0" transportation" and pu4lic sector$ The follo(ing ta4le sho(s our net re#enues 40 client industr0$ ES8 in thousands" eBcept 7 Technolog0 /o,,unications BFSI Energ0" transportation" and pu4lic 2012Q3 2%";< 3 3:"3; 2 22";0 < 9";9< 7 2%$67 3:$67 22$<7 9$%7 2013Q3 2:";;6 ;3"0%< 2:"30% 10"%<3 7 22$67 39$<7 22$<7 6$%7

Others Total net re#enues

:"9:; 69":% 3

:$67 100$0 7

%"92: 111"32 0

%$17 100$0 7

et re#enues fro, technolog0 clients decreased 81$0 ,illion or 3$67 to 82:$; ,illion in the third 5uarter 2013 fro, 82%$: ,illion in the third 5uarter 2012 due to reduced de,and fro, a ,aFor technolog0 client in /hina$ et re#enues fro, co,,unications clients increased 8<$< ,illion or 21$67 to 8;3$1 ,illion in the third 5uarter 2013 fro, 83:$3 ,illion in the third 5uarter 2012 due to increased 4usiness #olu,e fro, our largest co,,unications client in /hina" partiall0 offset 40 the decreased de,and fro, a ,aFor co,,unications client in Enited States and t(o European clients$ et re#enues fro, BFSI clients increased 82$6 ,illion or 12$67 to 82:$3 ,illion in the third 5uarter 2013 fro, 822$; ,illion in the third 5uarter 2012" attri4uta4le largel0 to IT ser#ices proFects for do,estic 4anDs" partiall0 offset 40 reduced re#enue fro, a glo4al financial institution client$ et re#enues fro, energ0" transportation" and pu4lic sector clients increased 82$2 ,illion or 2:$97 to 810$< ,illion in the third 5uarter 2013 fro, 89$: ,illion in the third 5uarter 2012 due to the recent (inning of a ne( pu4lic sector consulting C solutions proFect$ et re#enues fro, all other industries increased 81$0 ,illion to 8%$9 ,illion in the third 5uarter 2013 fro, 8:$6 ,illion in the third 5uarter 2012$ Net revenues by five largest clients et re#enues fro, our fi#e largest clients totaled 8:%$; ,illion or :0$<7 of total net re#enues in the third 5uarter 2013 co,pared (ith 8;<$9 ,illion or ;9$:7 in the third 5uarter 2012$ Net revenues by pricing method @e pro#ide our ser#ices on a ti,e)and)eBpense 4asis" a fiBed)price 4asis" or for certain B'O ser#ices" on the 4asis of #olu,e of (orD processed for our clients$ The follo(ing ta4le sho(s our net re#enues 40 pricing ,ethod$ ES8 in thousands" eBcept 7 2012Q3 Ti,e)and)eBpense 4asis FiBed)price 4asis Iolu,e 4asis -B'O3 36"12 ; :9":% 9 9<1 7 36$<7 :6$;7 0$67 2013Q3 ;1"2<< %9";:1 1":62 7 3<$17 %1$:7 1$;7

Total net re#enues

69":% 3

100$0 7

111"32 0

100$0 7

et re#enues fro, ti,e)and)eBpenses 4asis proFects increased 82$2 ,illion or :$:7 to 8;1$3 ,illion in the third 5uarter 2013 fro, 836$1 ,illion in the third 5uarter 2012$ et re#enues fro, fiBed)price 4asis proFects increased 86$6 ,illion or 1%$67 to 8%9$: ,illion in the third 5uarter 2013 fro, 8:9$% ,illion in the third 5uarter 2012$ Cost of revenues, gross profit, and gross profit margin /ost of re#enues increased 819$0 ,illion or 29$27 to 891$9 ,illion in the third 5uarter 2013 fro, 8%3$9 ,illion in the third 5uarter 2012 pri,aril0 due to higher salar0 and co,pensation costs as a result of organic gro(th of ser#ice deli#er0 e,plo0ees and the ac5uisition of a nu,4er of deli#er0 tea,s fro, industr0 peers to ena4le and ,atch the gro(th of our 4usiness$ !ross profit decreased 8:$2 ,illion or 1:$07 to 826$: ,illion in the third 5uarter 2013 fro, 83;$< ,illion in the third 5uarter 2012$ !ross profit ,argin decreased to 2%$:7 in the third 5uarter 2013 fro, 3:$27 in the third 5uarter 2012 pri,aril0 due to -13 change of 4usiness ,iB in the third 5uarter 2013 as less re#enues (ere generated fro, consulting and solutions 4usiness and ,ore re#enues (ere generated fro, IT ser#ices and B'O t0pe contracts (hich generall0 had lo(er gross ,argins than in the consulting and solutions 4usinessH -23 an increase in salar0 and co,pensation costs as a result of annual salar0 increases for deli#er0 personnel" ,ore idle costs as a result of one ,aFor client that (as consolidating its #endors" ,ore IT professionals (ho left our industr0 peers and Foined us (ho (ere not 0et full0 producti#e during the transition period" ,ore idle costs 4ecause (e reser#ed ,ore fresh graduate students to replace certain non)producti#e e,plo0ees and there (ere certain duplicate la4or costs during the replacing period" and -33 less go#ern,ent su4sidies recei#ed in the third 5uarter 2013$ Operating expenses Operating eBpenses increased 40 810$2 ,illion or ;0$97 to 83:$3 ,illion in the third 5uarter 2013 fro, 82:$0 ,illion in the third 5uarter 2012 (hich (ere ,ainl0 fro, the increase of general and ad,inistrati#e eBpenses pri,aril0 due to -13 higher salar0 and co,pensation eBpenses as a result of annual salar0 increases for operations personnelH -23 higher professional eBpenses" ,ainl0 go)pri#ate related eBpenses and legal fees related to so,e ongoing litigationsH and -33 higher depreciation and a,ortiJation eBpenses" partiall0 offset 40 a decrease of rental eBpenses as a result of ,o#ing into the ne(l0 ac5uired office 4uilding in the second 5uarter 2013$ Income (loss) from operations +oss fro, operations (as 8:$2 ,illion in the third 5uarter 2013 co,pared (ith an inco,e

of 86$3 ,illion in the third 5uarter 2012 due to the factors eBplained a4o#e$ on)!==' inco,e fro, operations -note 13 decreased 812$0 ,illion or 66$07 to 80$1 ,illion in the third 5uarter 2013 fro, 812$2 ,illion in the third 5uarter 2012 due to lo(er gross profit and higher operating eBpenses eBplained a4o#e$ Interest expense Interest eBpense (as 82$% ,illion in the third 5uarter 2013 co,pared (ith 80$: ,illion in the third 5uarter 2012$ Interest eBpense in the third 5uarter 2013 and 2012 (as incurred on 4anD 4orro(ings and the increase (as due to ,ore 4anD 4orro(ings to fund our (orDing capital" office 4uilding" and 4usiness ac5uisition needs$ Income taxes (expense) benefit Inco,e taB 4enefit (as 80$; ,illion in the third 5uarter 2013 co,pared (ith an inco,e taB eBpense of 81$3 ,illion in the third 5uarter 2012$ The /o,pan0 (as in a loss position in the third 5uarter 2013 due to the factors eBplained a4o#e$ Net income (loss) et loss in the third 5uarter 2013 (as 8<$2 ,illion" co,pared (ith a net inco,e of 8<$: ,illion in the third 5uarter 2012 due to the factors eBplained a4o#e$ on)!==' net loss in the third 5uarter 2013 (as 81$6 ,illion" co,pared (ith net inco,e of 810$; ,illion in the third 5uarter 2012 due to the factors eBplained a4o#e$ Earnings per ADS Basic earnings per =>S (ere a loss of 80$13 in the third 5uarter 2013 and an inco,e of 80$13 in the third 5uarter 2012$ >iluted earnings per =>S (ere a loss of 80$13 in the third 5uarter 2013 and an inco,e of 80$13 in the third 5uarter 2012$ on)!==' diluted earnings per =>S -note 13 (ere a loss of 80$0; in the third 5uarter 2013 and an inco,e of 80$19 in the third 5uarter 2012$ Cas and cas flo! =s of Septe,4er 30" 2013" (e had a cash 4alance of 89%$0 ,illion$ Our net cash pro#ided 40 operating acti#ities in the third 5uarter 2013 (as 89$2 ,illion$ Our net cash used in in#esting acti#ities in the third 5uarter 2013 (as 89$; ,illion" including 813$0 ,illion of capital eBpenditures$ @ithin the capital eBpenditures" 810$; ,illion related to the leasehold i,pro#e,ent of the ne(l0 ac5uired office facilit0 in BeiFing$ In the third

5uarter 2013" (e 4orro(ed 823$; ,illion of short)ter, 4anD loans and repaid 820$0 ,illion of short)ter, 4anD loans upon ,aturit0$ >a0s sales outstanding" or >SO" (as 16% da0s for the third 5uarter 2013 and 192 da0s for the third 5uarter 2012$ >SO is calculated 40 di#iding a#erage accounts recei#a4le" net of deferred re#enues" 40 the periodAs gross re#enues" and ,ultipl0ing 40 the nu,4er of da0s in the period$ The longer >SO in the third 5uarter 2013 (as ,ainl0 due to faster re#enue gro(th fro, do,estic /hina clients" especiall0 the clients in BFSI and pu4lic sectors" (hich tend to ha#e longer pa0,ent c0cles$ Results of operations for the first nine months 2013 Net revenues et re#enues increased 83%$6 ,illion or 13$37 to 8313$9 ,illion in the first nine ,onths 2013 fro, 82<%$6 ,illion in the first nine ,onths 2012 due to relati#el0 stronger custo,er de,and for IT ser#ices in !reater /hina" partiall0 offset 40 declining de,and fro, so,e glo4al clients$ Net revenues by service line The follo(ing ta4le sho(s our net re#enues 40 ser#ice line$ First ine ?onths 2012 First ine ?onths 2013

ES8 in thousands" eBcept 7 IT ser#ices =>? RC> Infrastructure and soft(are IT ser#ices" total /onsulting C Solutions B'O ser#ices Total net re#enues

62";%< <<"%00 <"96% 1<<"6%3 96"3;1 6"%21 2<%"62:

33$;7 29$07 2$67 %;$37 32$37 3$;7 100$0 7

11:"19; <<"63< 3"%:< 16%"<<9 101";<1 1:":69 313"9;<

3%$<7 2;$97 1$27 %2$<7 32$37 :$07 100$0 7

et re#enues fro, IT Ser#ices increased 819$9 ,illion or 10$%7 to 816%$9 ,illion in the first nine ,onths 2013 fro, 81<9$0 ,illion in the first nine ,onths 2012 ,ainl0 due to increased 4usiness #olu,e fro, our largest co,,unications client and other 4anDing clients in /hina$ et re#enues fro, /onsulting C Solutions increased 812$1 ,illion or 13$%7 to 8101$: ,illion in the first nine ,onths 2013 fro, 896$3 ,illion in the first nine ,onths 2012 ,ainl0 due to re#enue generated fro, pu4lic sector consulting C solutions proFects (on in 2013" partiall0 offset 40 the decreased de,and fro, a technolog0 client in /hina and a co,,unications client in E$S$ et re#enues fro, B'O ser#ices increased %2$17 to 81:$% ,illion in the first nine ,onths 2013 fro, 86$% ,illion in the first nine ,onths 2012 due to ne( proFect (ins$ Net revenues by geographic markets The follo(ing ta4le sho(s our net re#enues 40 geographic ,arDets$ First ine ES8 in thousands" eBcept 7?onths 2012 !reater /hina !lo4al2 Enited States Europe Japan Others !lo4al total Total net re#enues %%"3%6 16";9% 19"019 1":01 10:"3<; 2<%"62: 2;$07 <$07 %$:7 0$%7 39$17 100$0 7 %2";32 1:"131 1%";03 2";<9 6%";;; 313"9;< 16$67 ;$97 :$27 0$97 30$<7 100$0 7 1<1"::1 First ine ?onths 2013 21<";03

7 %1$67

7 %6$37

Our net re#enues fro, !reater /hina clients increased 8;:$6 ,illion or 2%$<7 to 821<$; ,illion in the first nine ,onths 2013 fro, 81<1$% ,illion in the first nine ,onths 2012 ,ainl0 due to increased 4usiness #olu,e fro, our largest co,,unications client and other 4anDing clients in /hina and continuous re#enue generated fro, /hina pu4lic sector consulting C solutions proFects (on in 2013$ et re#enues fro, E$S$ clients decreased 83$6 ,illion or :$67 to 8%2$; ,illion in the first nine ,onths 2013 fro, 8%%$; ,illion in the first nine ,onths 2012 ,ainl0 due to reduced de,and fro, a ,aFor co,,unications client in the Enited States$ et re#enues fro, European clients decreased 8;$; ,illion or 22$37 to 81:$1 ,illion in the first nine ,onths 2013 fro,

816$: ,illion in the first nine ,onths 2012 due to the stop of 4usiness relationships (ith t(o European co,,unications clients$ et re#enues fro, Japanese clients decreased 81$% ,illion or 6$07 to 81%$; ,illion in the first nine ,onths 2013 fro, 819$0 ,illion in the first nine ,onths 2012$ Net revenues by client industry The follo(ing ta4le sho(s our net re#enues 40 client industr0$ First ine ?onths 2012 <9"::0 101"%9; :<";2< 23"32% 1:"639 2<%"62: First ine ?onths 2013 <3"%99 11:"%6< %<"09% 3%"06% 21"290 313"9;<

ES8 in thousands" eBcept 7 Technolog0 /o,,unication BFSI Energ0" transportation" and pu4lic Others Total net re#enues

7 29$;7 3%$<7 20$<7 9$;7 :$97 100$0 7

7 23$:7 3%$67 21$;7 11$:7 %$<7 100$0 7

et re#enues fro, technolog0 clients decreased 8;$6 ,illion or %$27 to 8<3$< ,illion in the first nine ,onths 2013 fro, 8<9$% ,illion in the first nine ,onths 2012 due to reduced de,and fro, a ,aFor technolog0 client in /hina$ et re#enues fro, co,,unications clients increased 81;$0 ,illion or 13$97 to 811:$< ,illion in the first nine ,onths 2013 fro, 8101$< ,illion in the first nine ,onths 2012 due to increased 4usiness #olu,e fro, our largest co,,unications client in /hina" partiall0 offset 40 the decreased de,and fro, a ,aFor co,,unications client in Enited States and t(o European clients$ et re#enues fro, BFSI clients increased 86$< ,illion or 1%$97 to 8%<$1 ,illion in the first nine ,onths 2013 fro, 8:<$; ,illion in the first nine ,onths 2012" attri4uta4le largel0 to IT ser#ices proFects for do,estic 4anDs" partiall0 offset 40 reduced re#enue fro, a glo4al financial institution client$ et re#enues fro, energ0" transportation" and pu4lic sector clients increased 812$9 ,illion or :;$97 to 83%$1 ,illion in the first nine ,onths 2013 fro, 823$3 ,illion in the first nine ,onths 2012" (hich (as largel0 due to recent (inning of so,e ne( pu4lic sector consulting C solution proFects$ et re#enues fro, all other industries increased 8:$3 ,illion to 821$3 ,illion in the first nine ,onths 2013 fro, 81:$6 ,illion in the first nine ,onths 2012 resulting fro, three ne( proFect (ins fro, a /hinese real estate de#elop,ent co,pan0" a glo4al cos,etic co,pan0" and a glo4al B'O co,pan0$

Net revenues by five largest clients et re#enues fro, our fi#e largest clients totaled 81:3$2 ,illion or ;9$97 of total net re#enues in the first nine ,onths 2013 co,pared (ith 8129$1 ,illion or ;%$27 in the first nine ,onths 2012$ Net revenues by pricing method The follo(ing ta4le sho(s our net re#enues 40 pricing ,ethod$ First ine ES8 in thousands" eBcept 7?onths 2012 Ti,e)and)eBpense 4asis FiBed)price 4asis Iolu,e 4asis -B'O3 Total net re#enues 103"0;1 1<1"92< 2"0:< 2<%"62: First ine ?onths 2013 11%"192 163"696 3"%<% 313"9;<

7 3<$37 %2$07 0$<7 100$0 7

7 3<$17 %1$97 1$17 100$0 7

et re#enues fro, ti,e)and)eBpenses 4asis proFects increased 813$1 ,illion or 12$97 to 811%$2 ,illion in the first nine ,onths 2013 fro, 8103$0 ,illion in the first nine ,onths 2012$ et re#enues fro, fiBed)price 4asis proFects increased 822$2 ,illion or 12$67 to 816;$0 ,illion in the first nine ,onths 2013 fro, 81<1$9 ,illion in the first nine ,onths 2012$ et re#enues fro, #olu,e 4asis proFects increased 81$% ,illion or <9$<7 to 83$< ,illion in the first nine ,onths 2013 fro, 82$1 ,illion in the first nine ,onths 2012$ Cost of revenues, gross profit, and gross profit margin /ost of re#enues increased 83:$; ,illion or 16$27 to 8216$% ,illion in the first nine ,onths 2013 fro, 819;$2 ,illion in the first nine ,onths 2012 pri,aril0 due to increase of salar0 and co,pensation costs as a result of organic gro(th of ser#ice deli#er0 e,plo0ees and the ac5uisition of a nu,4er of deli#er0 tea,s fro, industr0 peers to ena4le and ,atch the gro(th of our 4usiness$ !ross profit increased 81$% ,illion or 1$<7 to 86;$3 ,illion in the first nine ,onths 2013 fro, 862$< ,illion in the first nine ,onths 2012$ !ross profit ,argin decreased to 30$07 in the first nine ,onths 2013 fro, 33$:7 in the first nine ,onths 2012 pri,aril0 due to -13 an increase in salar0 and co,pensation costs as a result of annual salar0 increases for deli#er0 personnel" ,ore idle costs 4ecause one ,aFor client (as consolidating its #endors" ,ore people left our industr0 peers and Foined us (ho (ere not full0 producti#e during the transition period" and ,ore idle costs 4ecause (e reser#ed ,ore fresh graduate

students to replace certain non)producti#e e,plo0ees and there (ere certain duplicate la4or costs during the replacing period and -23 less go#ern,ent su4sidies recei#ed in the first nine ,onths 2013$ Operating expenses Operating eBpenses increased 81<$< ,illion or 23$97 to 861$6 ,illion in the first nine ,onths 2013 fro, 8<;$2 ,illion in the first nine ,onths 2012 pri,aril0 due to -13 higher salar0 and co,pensation eBpenses as a result of annual salar0 increases for operations personnelH -23 higher rental and office reallocation eBpenses in connection (ith relocating our head5uarters in BeiFing and ter,inating rental contracts in TianFin and /hangshaH and -33 higher professional eBpenses" ,ainl0 go)pri#ate related eBpenses and legal fees related to so,e ongoing litigations$ Income (loss) from operations +oss fro, operations (as 81$; ,illion in the first nine ,onths 2013 co,pared (ith an inco,e of 81<$< ,illion in the first nine ,onths 2012 due to the factors eBplained a4o#e and a preeBisting lease contract loss included in other eBpense$ on)!==' inco,e fro, operations -note 13 decreased 81;$: ,illion or ;6$<7 to 81;$< ,illion in the first nine ,onths 2013 fro, 826$2 ,illion in the first nine ,onths 2012$ Interest expense Interest eBpense (as 8:$% ,illion in the first nine ,onths 2013 and 81$1 ,illion in the first nine ,onths 2012$ Interest eBpense in the first nine ,onths 2013 and 2012 (as incurred on 4anD 4orro(ings and the increase (as due to ,ore 4anD 4orro(ings to fund our (orDing capital" office 4uilding" and 4usiness ac5uisition needs$ Income taxes (expense) benefit Inco,e taB 4enefit (as 80$% ,illion in the first nine ,onths 2013 co,pared (ith an eBpense of 82$; ,illion in the first nine ,onths 2012$ Net income (loss) et loss (as 8%$1 ,illion in the first nine ,onths 2013 co,pared (ith an inco,e of 81;$; ,illion in the first nine ,onths 2012 due to the factors eBplained a4o#e$ on)!==' net inco,e -note 13 decreased 81:$6 ,illion or %1$:7 to 810$0 ,illion in the first nine ,onths 2013 fro, 82:$6 ,illion in the first nine ,onths 2012$ Earnings per ADS

Basic earnings per =>S (ere a loss of 80$11 in the first nine ,onths 2013 and an inco,e of 80$2% in the first nine ,onths 2012$ >iluted earnings per =>S (ere a loss of 80$11 in the first nine ,onths 2013 and an inco,e of 80$2: in the first nine ,onths 2012$ on)!==' diluted earnings per =>S -note 13 (ere 80$1< in the first nine ,onths 2013 and 80$;; in the first nine ,onths 2012$ Cas and cas flo! =s of Septe,4er 30" 2013" (e had a cash 4alance of 89%$0 ,illion$ Our net cash used in operating acti#ities in the first nine ,onths 2013 (as 832$0 ,illion$ Our net cash used in in#esting acti#ities in the first nine ,onths 2013 (as 8<;$6 ,illion" including 82<$% ,illion of capital eBpenditures and 8;6$< ,illion pa0,ent for ac5uisition of our ne( head5uarters office 4uilding$ @ithin the capital eBpenditures" 813$: ,illion related to the leasehold i,pro#e,ent of the ne(l0 ac5uired office facilit0 in BeiFing$ In the first nine ,onths 2013" (e 4orro(ed 896$; ,illion under short)ter, 4anD loans and 81;$% ,illion under long)ter, 4anD loans to fund our gro(th" office 4uilding" and 4usiness ac5uisition and repaid 830$; ,illion of short)ter, 4anD loans upon ,aturit0$ >a0s sales outstanding (as 19% da0s for the first nine ,onths 2013 and 1%6 da0s for the first nine ,onths 2012$ Recent developments Announced Receipt of Revised "Going Private" Offer Independent co,,ittee of the /o,pan0As 4oard of directors -the .Independent /o,,ittee.3 had recei#ed a re#ised offer -the .Offer.3" dated o#e,4er 2" 2013" fro, a consortiu, -the ./onsortiu,.3 consisting of -i3 ?r$ Tian(en +iu" the chief eBecuti#e officer and the chair,an of the 4oard of directors of the /o,pan0" -ii3 /hina=?/ /apital ?anage,ent +i,ited -./hina=?/.3" an alternati#e in#est,ent platfor, and an affiliate of /hina =sset ?anage,ent -*ong Gong3 +i,ited" and -iii3 =ccurate !lo4al +i,ited" =d#ance Orient +i,ited and /SOF Technolog0 In#est,ents +i,ited" to ac5uire all of the /o,pan0As outstanding ordinar0 shares not currentl0 o(ned 40 the /onsortiu, for 80$:;: per ordinar0 share or 8:$;: per =,erican depositar0 share -.=>S". each representing ten ordinar0 shares of the /o,pan03 in cash -the .Transaction.3" su4Fect to certain conditions$ The Offer adFusted do(n the proposed price of 80$:9: per ordinar0 share or 8:$9: per =>S in the non)4inding proposal recei#ed 40 the /o,pan0As 4oard of directors fro, ?r$ +iu and /hina=?/ on June %" 2013$ The Independent /o,,ittee" (hich (as for,ed to consider the proposed transaction and an0 potential alternati#e transactions in#ol#ing the /o,pan0" (ith assistance fro, its financial and legal ad#isors" is in the process of e#aluating the re#ised Offer and an0

alternati#e proposals it ,a0 recei#e$ The Independent /o,,ittee cautions the /o,pan0As shareholders that no decision has 4een ,ade 40 the Independent /o,,ittee or the /o,pan0As 4oard of directors (ith respect to the /o,pan0As response to the re#ised Offer and there can 4e no assurance that an0 agree,ent (ill 4e eBecuted or that this or an0 other transaction (ill 4e appro#ed or consu,,ated$ Option repricing =s descri4ed 4elo(" on Octo4er 9" 2013" our Board of >irectors appro#ed an option repricing (hich (as effecti#e on Octo4er 2;" 2013$ In deter,ining that the repricing (as appropriate and in the 4est interests of the /o,pan0" the Board" a,ong other things" -i3 deter,ined that the prolonged lo( trading price of our =>Ss and the per)share eBercise prices of the outstanding options to 4e repriced relati#e to the current fair ,arDet #alue of our securities no longer pro#ided the le#el of incenti#es intended 40 the /o,pan0 at the ti,e the0 (ere grantedH and -ii3 considered the ser#ices perfor,ed and eBpected to 4e perfor,ed 40 the indi#iduals to (ho, such options had 4een granted" the intangi4le 4enefits to 4e deri#ed 40 us fro, creating continued incenti#es for such indi#iduals" and other rele#ant facts and circu,stances$ In respect of 26$6 ,illion outstanding ordinar0 share options (ith an original eBercise price of 80$: to 80$%: per share held 40 certain non)E$S$ holders" the respecti#e eBercise price (as reduced to 80$;:% per share -4eing the a#erage of the per)share e5ui#alent closing price -in regular trading3 for our =>Ss for the period of siBt0 da0s i,,ediatel0 prior to the pu4lic announce,ent on June %" 2013 of the go)pri#ate proposal3$ In respect of 9$: ,illion outstanding ordinar0 share options (ith an original eBercise price of 80$: to 80$%: per share held 40 a li,ited nu,4er of E$S$ holders" the respecti#e eBercise price (as reduced to 80$:19 per share -4eing the per)share e5ui#alent closing price -in regular trading3 for our =>Ss on Octo4er 2;" 20133$ Such outstanding option -(hether or not pre#iousl0 #ested3 (ould 4e a,ended to pro#ide that each #esting install,ent of such outstanding option (ill 4e un#ested and (ill #est on the later to occur of Jul0 2;" 201; or the original #esting date of such outstanding option" su4Fect in each case to the holderAs continued e,plo0,ent or ser#ice (ith the /o,pan0 or one of its su4sidiaries through the applica4le ne( #esting date$ Share increase for the Performance Incentive Plan the "!"#" Plan"$ On Octo4er 9" 2013" the Board of >irectors of the /o,pan0 appro#ed to increase the eBisting share li,it under the 2010 'lan 40 an additional :"000"000 ordinar0 shares" su4Fect to the li,itations of the 2010 'lan" for future incenti#es purpose in light of current circu,stances$ %reasury share cancellation

The /o,pan0As (holl0)o(ned su4sidiar0 iSoftStone *ong Gong +i,ited pre#iousl0 purchased 1"633";:: of its Ordinar0 Shares" (hich shares (ere outstanding and treated 40 the /o,pan0 as treasur0 shares$ On Octo4er 9" 2013" the Board of >irectors of the /o,pan0 appro#ed cancellation of the treasur0 shares$ Outlook for the fourth quarter 2013 For the fourth 5uarter 2013" iSoftStone eBpects to achie#e the follo(ing targets2

et re#enues for the fourth 5uarter 2013 to 4e at least 8120 ,illion$ et loss for the fourth 5uarter 2013 to 4e at ,ost 8<$0 ,illion$ on)!==' net loss for the fourth 5uarter 2013 to 4e at ,ost 83$0 ,illion$ on)!==' diluted earnings per =>S for the fourth 5uarter 2013 to 4e at ,ost a loss of 80$0:" assu,ing :9$3 ,illion a#erage =>Ss (ill 4e outstanding in the fourth 5uarter 2013$ One =>S represents 10 ordinar0 shares$

on!"##$ measures To supple,ent our financial results presented in accordance (ith E$S$ generall0 accepted accounting principles -.!=='.3" (e use #arious non)!==' financial ,easures that are adFusted fro, results 4ased on E$S$ !==' to eBclude share)4ased co,pensation" a,ortiJation of intangi4le assets fro, ac5uisitions" and changes in fair #alue of contingent consideration in 4usiness co,4inations and a preeBisting contract loss related to the ac5uisition of our BeiFing head5uarters facilit0 in ?a0 2013$ Reconciliations of our non)!==' financial ,easures to our E$S$ !==' financial ,easures are sho(n in ta4les at the end of this earnings release" (hich pro#ide ,ore details a4out the non)!==' financial ,easures$ Our non)!==' financial infor,ation is pro#ided as additional infor,ation to help in#estors co,pare 4usiness trends a,ong different reporting periods on a consistent 4asis and to enhance in#estorsA o#erall understanding of the historical and current financial perfor,ance of our continuing operations and our prospects for the future$ Our non) !==' financial infor,ation should 4e considered in addition to results prepared in accordance (ith E$S$ !=='" 4ut should not 4e considered a su4stitute for or superior to E$S$ !==' results$ In addition" our calculation of this non)!==' financial infor,ation ,a0 4e different fro, the calculation used 40 other co,panies" and therefore co,para4ilit0 ,a0 4e li,ited$ ote 1 Our non)!==' infor,ation -including non)!==' operating eBpenses" inco,e fro, operations" net inco,e" and diluted earnings per =>S3 eBcludes share)4ased co,pensation" changes in fair #alue of contingent consideration in connection (ith 4usiness co,4ination" a,ortiJation of intangi4le assets fro, ac5uisitions" and preeBisting

contract loss$ For reconciliations of our non)!==' ,easures to our E$S$ !==' ,easures" please see the reconciliation ta4les at the end of this earnings release$

i%oft%tone &oldin's (imited )naudited *ondensed *onsolidated %tatement of Operations -ES dollars in thousands" eBcept per share data3 Three ,onths ended Septe,4er 30 2012 Re#enues Business taB et revenues /ost of re#enues "ross profit Operating eBpenses2 !eneral and ad,inistrati#e eBpenses Selling and ,arDeting eBpenses Research and de#elop,ent eBpenses Total operating eBpenses /hange in fair #alue of contingent consideration in -1:"<6:3 -<"91<3 -1";313 -2:"0;33 -1323 -2;"%013 -9"9393 -1"91%3 -3:"2::3 -<63 -;%"%063 -23"6:33 -3"%:03 -<;"2123 -%;23 -%1"66<3 -2;"<303 -:"1:13 -61"9<93 -2013 66"162 -%263 +,-./3 -%3"93;3 31-02+ 2013 111";: % -13%3 111-32 0 -91"9133 2+-.00 ine ,onths ended Septe,4er 30 2012 290"69: -;"0%03 20/-+2. -19;"23<3 +2-/,, 2013 31;";%: -%193 313-,10 -216":6< 3 +1-2.0

connection (ith 4usiness co,4ination Other -eBpense3 inco,e" net !o#ern,ent su4sidies Income (loss) from operations Interest inco,e Interest eBpense Inco,e -loss3 4efore pro#ision for inco,e taBes and loss in e5uit0 ,ethod in#est,ents" net of inco,e taBes Inco,e taBes -eBpense3 4enefit Inco,e -loss3 after inco,e taB 4efore loss in e5uit0 ,ethod in#est,ents" net of inco,e taBes -+oss3 inco,e in e5uit0 ,ethod in#est,ents" net of inco,e taBes et income (loss) +ess2 et -loss3 inco,e attri4uta4le to noncontrolling interest et income (loss) attri2uta2le to i%oft%tone &oldin's (imited 9"9%2 -1"2<<3 -<"%363 3:1 1<"21< -2";;;3 -%"3;%3 %1< -;<%3 1<2 +-2.0 1;2 -:303 10: :;: (.-100) 19< -2"%;63 -%:;3 ;91 10-//1 %:< -1"1013 -;"3:93 <<9 (1-10+) %<: -:"%123

<":9:

-<"2993

1;"<<3

-:"<263

-11:3 0-100

%< (0-221 )

-3;93 11-12.

-3<03 (/-0++)

-%23

;:2

1;

209

0-.32

(0-/03)

11-111

(/-300)

Earnings -loss3 per share -In ES83

Basic >iluted Earnings -loss3 per =>S -In ES83 Basic >iluted @eighted a#erage shares -In thousands3 Basic >iluted

0$01 0$01

-0$013 -0$013

0$03 0$02

-0$013 -0$013

0$13 0$13

-0$133 -0$133

0$2% 0$2:

-0$113 -0$113

:%%"6< 9 :<9"0; 1

:<<"66 0 :<<"66 0

:%2"9:3 :9;"33<

:<1"60: :<1"60:

i%oft%tone &oldin's (imited )naudited *ondensed *onsolidated %tatement of *omprehensive Income -ES dollars in thousands" eBcept per share data3 Three ,onths ended Septe,4er 30 2012 et income (loss) Other co,prehensi#e inco,e" net of taB of nil /hanges in cu,ulati#e foreign currenc0 translation 0-100 2013 (0-221) ine ,onths ended Septe,4er 30 2012 11-12. 2013 (/-0++)

3"0<;

6;0

%0;

;":0<

adFust,ent *omprehensive income (loss) +ess2 co,prehensi#e -loss3 inco,e attri4uted to the noncontrolling interest *omprehensive income (loss) attri2uted to i%oft%tone &oldin's (imited 10-.11 (/-2,1) 1.-02+ (1-.+2)

-13

;<2

::

319

10-.1.

(/-0.3)

11-+01

(1-+10)

i%oft%tone &oldin's (imited )naudited *ondensed *onsolidated 3alance %heets - ES dollars in thousands3 >ece,4er 31 2012 /ash Restricted cash =ccounts recei#a4le" net of allo(ance Other current assets Total current assets 'ropert0 and e5uip,ent +and use right Intangi4le assets !ood(ill 11%":6< 9"<;3 202"202 16"<<2 3;<"31; %<"<%9 3"202 :"6;: 2%"693 Septe,4er 30 2013 9:"6%9 %"2<1 2:1"6%6 33";69 3<<"<0% 1;;";23 36"3;6 :"21: 32":20

Other non)current assets Total assets

1:"269 1//-.10

12";<2 /11-/,.

=ccounts pa0a4le >eferred re#enue Short)ter, 4orro(ings Other current lia4ilities Total current lia4ilities +ong)ter, 4orro(ings Other non)current lia4ilities Total lia4ilities ShareholdersA e5uit0 - ote a3 oncontrolling interest Total lia2ilities and shareholders4 equit5

21"96: 6"%63 :;"012 ;3"9<9 126";<9 ) ;"0;9 133":2% 330"0<3 2"611 1//-.10

19"933 10"326 119"<06 %:";;< 213"319 ;0"<03 11":90 2%:"%01 339"926 <"2:: /11-/,.

ote a2 =s of Septe,4er 30" 2013" the nu,4er of ordinar0 shares issued and outstanding (as :92":0;"<:1$

i%oft%tone &oldin's (imited )naudited *ondensed *onsolidated %tatement of *ash Flo6s -ES dollars in thousands3 Three ,onths ine ,onths

ended Septe,4er 30 2012 /ash flo(s fro, operating acti#ities2 et inco,e -loss3 =dFust,ents to reconcile net inco,e to net cash used in operating acti#ities2 Share)4ased co,pensation >epreciation and a,ortiJation of propert0 and e5uip,ent =,ortiJation of intangi4le assets =,ortiJation of land use right 'ro#ision of allo(ance for dou4tful accounts +oss -inco,e3 on e5uit0 ,ethod in#est,ents +oss on disposal of propert0 and e5uip,ent /hanges in fair #alue of contingent consideration in connection (ith 4usiness co,4inations 'reeBisting contract loss /hanges in operating assets and lia4ilities2 =ccounts recei#a4le Other assets =ccounts pa0a4le -11":2< 3 -;"0%:3 -2";3%3 ;;< -3"<< 33 3"33 1"69 2 2"2; 2 691 19 139 11: ;: 132 ) ;"%< < ;";: 9 <;< 209 %0: -%<3 99 <6 ) <";< 0 -<"22 13 2013

ended Septe,4er 30 2012 2013

1;"; 2:

-%"06 63

9"9: 2 %"90 ; 2";3 : :; 231 3;9 1:9 %;2 )

10"0 %% 10"3 60 2"20 2 30< 9%2 3<0 196 201 ;"10 %

-%0"3 :93 -:"1< ;3 -2";%

-;%"6 6%3 -12"0 0<3 -1"%0

6 Other lia4ilities et cash (used in) provided 25 operatin' activities /ash flo(s fro, in#esting acti#ities2 'urchase of propert0 and e5uip,ent /ost of long)ter, in#est,ents 'roceeds fro, sales of long)ter, in#est,ents /onsideration paid for 4usiness ac5uisitions /onsideration paid for ac5uiring of noncontrolling interest Restricted cash et cash used in investin' activities /ash flo(s fro, financing acti#ities2 'roceeds fro, eBercise of options /apital contri4ution fro, noncontrolling interest shareholder 'roceeds fro, short ter, 4orro(ings 'roceeds fro, long ter, 4orro(ings 'a0,ents of short ter, 4orro(ings <; ) 22"% <2 ) ) <9 ) 23"; 29 ) -16"6 -%"%%:3 -1";263 1"93 % -;0:3 -63 20< (/-1/.) -13"0 133 ) ) -%:33 ) :"29 9 (,-30 ,) 3:2 (1-..3) ;"%2 < ,-21 1

<3 ;61 (33-. .+)

%3 :"6< : (32-0 10)

-1:"9 <03 -1";2 63 2";1 3 -2"1: :3 -63 62: (1/-1 2.)

-2<"% 363 ) ) -;6"< 023 ) 2";< 1 (01-, 00)

1"9% < ;3% 2;"2 :< ) -1":9

:66 ;"02 : 96"; 0% 1;"% 23 -30"3

663 >eferred and contingent consideration paid for 4usiness ac5uisitions et cash provided 25 financin' activities Effect of eBchange rate changes et increase (decrease) in cash /ash at 4eginning of period /ash at end of period ) 22-0 1/ %:6 12-3 ,0 %0"0 <2 <2"; :6 -:313 2-+0 / 320 3-13 2 92"9 3% 9:"6 %9

:3 -3"69 03 20-+ +. -;93 (2,-0 30) 101" 16% <2"; :6

903 -2"9: 63 0.-1 11 9%< (30-/ 2+) 11%" :6< 9:"6 %9

i%oft%tone &oldin's (imited Reconciliation of on!"##$ financial measures to compara2le "##$ measures -ES dollars in thousands" eBcept per share data3 1$ Reconciliation of on)!==' financial operating eBpenses" inco,e fro, operations" and net inco,e to co,para4le !==' ,easures$ Three ,onths ended Septe,4er 30" 2012 !== ' Operating eBpenses Inco,e -loss3 -2:"0;3 3 6"2: =dFust ,ents 2";29-a 3 2"600-a on) !== ' -22"% 1:3 12"1 Three ,onths ended Septe,4er 30" 2013 !== ' -3:"2 ::3 -:"1< =dFust ,ents :"0;3-c 3 :"26%-c on) !== ' -30"2 123 116

fro, operations et inco,e -loss3

0 <";< 0

3-43 2"600-a 3-43 ine ,onths

:0 10"3 <0

<3 -<"22 13

3-d3 :"26%-c 3-d3 ine ,onths -1"62 :3

ended Septe,4er 30" 2012 !== ' Operating eBpenses Inco,e -loss3 fro, operations et inco,e -loss3 otes2 -<;"212 3 1<"% %1 1;"; 2: =dFust ,ents 10"009e3 11";63e3-f3 11";63 -e3-f3 on) !== ' -%;"2 0;3 26"1 :; 2:"6 19

ended Septe,4er 30" 2013 !== ' -61"9 <93 -1";0 63 -%"06 63 =dFust ,ents 11"100g3 1%"090g3-h3 1%"090g3-h3 on) !== ' -90"< <93 1;"% <1 6"69 1

-a3 =dFust,ents to eBclude share)4ased co,pensation of 81"9;6 and a,ortiJation of intangi4le assets fro, ac5uisitions of 8:<6 fro, the unaudited condensed consolidated state,ents$ -43 =dFust,ents to eBclude share)4ased co,pensation of 8133" a,ortiJation of intangi4le assets fro, ac5uisitions of 820<" and changes in fair #alue of contingent consideration connection (ith 4usiness co,4inations of 8132 fro, the unaudited condensed consolidated state,ents$ -c3 =dFust,ents to eBclude share)4ased co,pensation of 8;":%1 and a,ortiJation of intangi4le assets fro, ac5uisitions of 8;92 fro, the unaudited condensed consolidated state,ents$ -d3 =dFust,ents to eBclude share)4ased co,pensation of 811%" a,ortiJation of intangi4le assets arising fro, ac5uisitions of 8:9" and changes in fair #alue of contingent consideration in connection (ith 4usiness co,4inations of 8<6 fro, the unaudited condensed consolidated state,ents$ -e3 =dFust,ents to eBclude share)4ased co,pensation of 89";%% and a,ortiJation of

intangi4le assets fro, ac5uisitions of 81":;2 fro, the unaudited condensed consolidated state,ents$ -f3 =dFust,ents to eBclude share)4ased co,pensation of 839:" a,ortiJation of intangi4le assets fro, ac5uisitions of 8;:9" and changes in fair #alue of contingent consideration connection (ith 4usiness co,4inations of 8%;2 fro, the unaudited condensed consolidated state,ents$ -g3 =dFust,ents to eBclude share)4ased co,pensation of 86"<11 and a,ortiJation of intangi4le assets fro, ac5uisitions of 81"396 fro, the unaudited condensed consolidated state,ents$ -h3 =dFust,ents to eBclude share)4ased co,pensation of 83:%" a,ortiJation of intangi4le assets arising fro, ac5uisitions of 831<" changes in fair #alue of contingent consideration in connection (ith 4usiness co,4inations of 8201" and preeBisting contract loss of 8;"10% fro, the unaudited condensed consolidated state,ents$

2$

Reconciliation of diluted E'S to on)!==' diluted E'S Three ,onths ended Septe,4er 30" 2012 !==' on) !==' ,easur =dFust,en es ts ,easures Three ,onths ended Septe,4er 30" 2013 !==' ,easures =dFust, ents on)!==' ,easures

@eighted a#erag e ordinar0 shares outstanding us ed in co,puting diluted E'S -in thousands3 >iluted earnings per share -in ES83 >iluted earnings per

:<9"0; 1

:<9"0; 1

:<<"660a3

:<<"660a3

0$01

0$02

-0$013

=>S -in ES83

0$13

0$19

-0$133

-0$0;3

ine ,onths ended Septe,4er 30" 2012 !==' on) !==' ,easur =dFust,en es ts ,easures @eighted a#erage ordinar0 shares outstanding used in co,puting diluted E'S -in thousands3 >iluted earnings per share -in ES83 >iluted earnings per =>S -in ES83

ine ,onths ended Septe,4er 30" 2013 !==' ,easures =dFust, ents on)!==' ,easures

:9;"33 <

:9;"33 <

:<1"60:

10"611-43

:92"91%

0$02

0$0;

-0$013

0$02

0$2:

0$;;

-0$113

0$1<

ote2 -a3 In the earning release for the second 5uarter 2013" (e esti,ated :6$0 ,illion a#erage =>Ss or :60$0 ,illion shares (ould 4e outstanding in the third 5uarter 2013$The difference fro, the esti,ate of :60$0 ,illion to the actual nu,4er of :<9$0 ,illion shares (as pri,aril0 due to that the i,pact of the share options and share units (as anti)diluti#e and (as not included$ -43 The adFust,ents represent addition of i,pact of share options and share units assu,ed to ha#e 4een eBercised or #ested at the 4eginning of period -or at ti,e of issuance" if later3$

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