CAYMAN ISLANDS

GRAND COURT

CAYMAN – PROCEDURE – STRIKE OUT – EMPLOYMENT – SHARE OPTION AGREEMENT – LOSS OF OPPORTUNITY TO ACQUIRE SHARES – SPECIFIC PERFORMANCE

The action was brought by Mr. Pinegar (the “Plaintiff”), a resident of the People’s Republic of China (“PRC”), against iSoftstone Holding Limited (“IHL”), a Cayman Islands company listed on the New York Stock Exchange. The Plaintiff claims damages for breach of his employment agreement with IHL’s subsidiary, an agreement which includes vested share option agreements provided through IHL.

The breach is alleged to have resulted in the loss of opportunity to connect IHL shares (acquired by exercise of options) into American Depository Shares (“ADSs”) and to acquire and track those ADSs to which the Plaintiff claims to have been entitled. Alternatively, the Plaintiff claims specific performance of the share option agreements, including the right of conversion to ADSs. IHL counterclaims for the sum of US$1,210,058.00 said to be due from the Plaintiff as withholding taxes arising from the exercise of certain of the vested share options. This is the amount which IHL claims it is liable, as counterparty to the share option agreements, to pay to the Revenue of the PRC.

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