HispanicBusiness

Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company's Annual Report on Form 10-K, its Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission, the Company's press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words "aim," "believe," "expect," "anticipate," "intend," "estimate" and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to those set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission on March 30, 2012, under the heading "Item 1A. Risk Factors". The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

                        Sajan, Inc. and Subsidiaries         CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)                            Three months ended                               December 31,         Year ended December 31,                         ------------------------  ------------------------                             2012         2011         2012         2011                         -----------  -----------  -----------  -----------Revenues                 $ 5,179,557  $ 5,087,868  $20,511,176  $20,904,311Operating Costs:Cost of revenues (exclusive of depreciation and amortization)             3,351,900    3,116,819   13,298,987   12,467,302Sales and marketing          601,293      636,601    2,415,436    2,545,309Research and development     145,259      386,815    1,093,582    1,622,564General and administrative              913,666    1,054,057    3,837,265    3,944,530Depreciation and amortization                236,011      194,719      825,092      747,672                         -----------  -----------  -----------  -----------Loss from Operations         (68,572)    (301,144)    (959,186)    (423,066)Other income (expense), net                          53,261      538,671      (35,625)     502,053                         -----------  -----------  -----------  -----------                             (15,311)     237,527     (994,811)      78,987Income (loss) before income taxesIncome tax expense           (23,928)     (12,000)     (57,503)     (12,000)                         -----------  -----------  -----------  -----------Net income (loss)        $   (39,239) $   225,527  $(1,052,314) $    66,987                         ===========  ===========  ===========  ===========Income (loss) per common share - basic & diluted $      0.00  $      0.01  $     (0.06) $      0.00                         -----------  -----------  -----------  -----------Weighted average shares outstanding - basic      16,255,546   16,144,944   16,201,587   16,051,529                         ===========  ===========  ===========  ===========Weighted average shares outstanding - diluted    16,255,546   16,434,755   16,201,587   16,341,340                         ===========  ===========  ===========  ===========                        Sajan, Inc. and Subsidiaries                    CONDENSED CONSOLIDATED BALANCE SHEETS                                 (Unaudited)                                             December 31,     December 31,                                                 2012             2011                                           ---------------- ----------------AssetsCurrent assets  Cash and cash equivalents                $        892,939 $      1,763,249  Accounts receivables, net of allowance   of $15,000                                     3,192,337        3,501,898  Unbilled revenue                                1,015,429          823,617  Other current assets                              492,854          469,974                                           ---------------- ----------------Total current assets                              5,593,559        6,558,738  Property and equipment, net                       805,284          758,440Other assets, net                                   897,534        1,100,614                                           ---------------- ----------------    Total assets                           $      7,296,377 $      8,417,792                                           ================ ================Liabilities and Stockholders' EquityCurrent liabilities  Payables                                 $      2,501,772 $      2,507,490  Note payable - related party                      750,000          750,000  Line of credit                                    400,000                0  Other current liabilities                       1,434,229        1,366,333                                           ---------------- ----------------Total current liabilities                         5,086,001        4,623,823Long-term liabilities                                 7,549          788,528                                           ---------------- ----------------    Total liabilities                             5,093,550        5,412,351                                           ---------------- ----------------Stockholders' equity                              2,202,827        3,005,441                                           ---------------- ----------------    Total liabilities and stockholders'     equity                                $      7,296,377 $      8,417,792                                           ================ ================