Sajan Inc.: Announces second quarter 2010 financial results

Q2 Revenues grow 55% over prior year and 34% sequentially

RIVER FALLS, WI- August 12, 2010 – Sajan, Inc., (SAJA.PK) the leading provider of global language services and cloud-based translation management software, today reported financial results for quarter ended June 30, 2010.

Second Quarter Financial Results

Revenues for the quarter ended June 30, 2010 were $4.2 million, a record level for quarterly revenues for Sajan. This represented an increase of 55% over revenues for the quarter ended June 30, 2009 of $2.7 million. For the six months ended June 30, 2010, revenues were $7.3 million which represented an increase of 28% over revenues for the same period in 2009 of $5.7 million. The net loss attributable to Sajan for the second quarter of 2010 was approximately $543,000, or $0.03 per share, compared to net loss attributable to Sajan of approximately $362,000, or $0.06 per share for the same quarter last year. The net loss attributable to Sajan for the six months ended June 30, 2010 was approximately $2.0 million or $0.15 per share, compared to a net loss attributable to Sajan of $566,000 or $0.10 per share for the six month period ended June 30, 2009. Financial results included non-cash expenses related to stock based compensation of approximately $87,000 or $0.01 per share in the three months ended June 30, 2010 and approximately $457,000, or $0.03 per share in the six months ended June 30, 2010, compared to approximately $64,000 or $0.00 per share and $102,000 or $0.02 per share, in the prior year comparable periods. In addition, the results for the six months ended June 30, 2010 included approximately $540,000, or $0.04 per share of transaction related costs, including legal, accounting, filing and investment banking fees, associated with the February merger with MathStar, Inc.

“I am very pleased to report record revenues for the second quarter”, said Shannon Zimmerman, the Company’s Chief Executive Officer. “During the second quarter we refocused and reenergized our sales initiatives and it is very encouraging that the market has responded with such enthusiasm. We will maintain our emphasis on innovation and delivering high value to our clients. By offering the market high quality language translation services and industry leading technology, Sajan is able to provide customers with flexible, best in class globalization solutions,” concluded Zimmerman.

Conference Call Details

The Company’s investors will have the opportunity to listen to management’s discussion of its business operations, financial results and growth strategies on a conference call at 10:30 a.m. CT. The Company invites all those interested to join the call by dialing 888-469-2083 and entering access code 5201276. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and until 5:00 p.m. CT on August 18, 2010 by dialing 866-418-8387.