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<SEC-DOCUMENT>0001157523-08-002204.txt : 20080313
<SEC-HEADER>0001157523-08-002204.hdr.sgml : 20080313
<ACCEPTANCE-DATETIME>20080313083808
ACCESSION NUMBER:		0001157523-08-002204
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080313
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080313
DATE AS OF CHANGE:		20080313

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INNODATA ISOGEN INC
		CENTRAL INDEX KEY:			0000903651
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
		IRS NUMBER:				133475943
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1216

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22196
		FILM NUMBER:		08684967

	BUSINESS ADDRESS:	
		STREET 1:		THREE  UNIVERSITY PLAZA
		STREET 2:		SUITE 506
		CITY:			HACKENSACK
		STATE:			NJ
		ZIP:			07601
		BUSINESS PHONE:		201 488 1200

	MAIL ADDRESS:	
		STREET 1:		THREE UNIVERSITY PLAZA
		STREET 2:		SUITE 506
		CITY:			HACKENSACK
		STATE:			NJ
		ZIP:			07601

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INNODATA CORP
		DATE OF NAME CHANGE:	19930505
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5633067.htm
<DESCRIPTION>INNODATA ISOGEN, INC. 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
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  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: center">
      <font style="font-size: 18pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><b><font style="font-size: 18pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 18pt"></font><font style="font-size: 18pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-size: 18pt; font-family: Times New Roman"><b>FORM
      8-K</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>Pursuant
      to Section 13 or 15 (d) of the Securities Exchange Act of 1934</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman">Date
      of Report: March 13, 2008</font><br><font style="font-size: 10pt; font-family: Times New Roman">(Date
      of earliest event reported):</font><br><br><br><font style="font-size: 18pt"><b>INNODATA
      ISOGEN, INC.</b></font><br><font style="font-size: 10pt; font-family: Times New Roman">(Exact
      name of registrant as specified in its charter)</font><br><br><br>
    </p>
    <table style="font-size: 10pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; width: 33%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Delaware</b>
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 34%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>0-22196</b>
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 33%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>13-3475943</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 33%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction of
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            incorporation)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 34%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 33%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (I.R.S. Employer
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    <table style="font-size: 10pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; width: 67%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Three University Plaza</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Hackensack, NJ 07601</b>
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 33%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>07601</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 67%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 10pt; font-family: Times New Roman">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 33%; text-align: center" valign="bottom">
          <font style="font-size: 10pt; font-family: Times New Roman">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    <p style="text-align: center">
      <font style="font-size: 10pt"><b>(201) 371-2828</b></font><font style="font-size: 10pt"><br style="font-size: 10pt"></font><font style="font-size: 10pt">(</font><font style="font-size: 10pt; font-family: Times New Roman">Registrant&#8217;s
      telephone number, including area code)</font><br><br><font style="font-size: 10pt"><b>N/A</b></font><font style="font-size: 10pt"><br style="font-size: 10pt"></font><font style="font-size: 10pt; font-family: Times New Roman">(Former
      name or former address, if changed since last report)</font>
    </p>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="margin-left: 0pt; margin-right: 0pt; text-indent: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      2.02&#160;&#160;&#160;&#160;&#160;</b></font><b><u><font style="font-size: 10pt; font-family: Times New Roman">Results
      of Operations and Financial Condition.</font></u></b><br>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt">On March 13, 2008, Innodata Isogen, Inc.
      issued a press release announcing its fourth quarter and year end 2007
      financial results. A copy of the press release is attached hereto as
      Exhibit 99.1. </font>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt">In accordance with General Instruction B.2
      of Form 8-K, the information in this Current Report on Form 8-K,
      including Exhibit 99.1, shall not be deemed to be &quot;filed&quot; for purposes
      of Section 18 of the Securities Exchange Act of 1934, as amended (the
      &quot;Exchange Act&quot;), or otherwise subject to the liability of that section,
      and shall not be incorporated by reference into any registration
      statement or other document filed under the Securities Act of 1933, as
      amended, or the Exchange Act, except as shall be expressly set forth by
      specific reference in such filing.</font><br><br><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      9.01&#160;&#160;&#160;&#160;&#160;</b></font><b><u><font style="font-size: 10pt; font-family: Times New Roman">Financial
      Statements and Exhibits.</font></u></b><br><br><font style="font-size: 10pt">99.1
      &#160;&#160;&#160;Press release dated March 13, 2008.</font>
    </p>
    <p>
      <br>

    </p>
    <div style="margin-left: 0pt; margin-right: 0pt; text-indent: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <u><font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font></u>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <table style="font-size: 10pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            INNODATA ISOGEN, INC.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 5%; text-align: left" valign="top">
          Date:
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 55%; text-align: left" valign="top">
          March 13, 2008
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 3%; text-align: left" valign="top">
          By:
        </td>
        <td style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" colspan="2" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Steven L. Ford
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; width: 1%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 36%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Steven L. Ford
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; width: 1%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 36%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Executive Vice President
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 55%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 1%">

        </td>
        <td style="padding-left: 0.0px; width: 36%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            and Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    <p>

    </p>
    <div style="margin-left: 0pt; margin-right: 0pt; text-indent: 0pt; width: 100%; margin-bottom: 10pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <u><font style="font-size: 10pt; font-family: Times New Roman"><b>INDEX&#160;TO
      EXHIBITS</b></font></u>
    </p>
    <table style="font-size: 10pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; width: 15%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Exhibit No.</b></u>
          </p>
        </td>
        <td style="width: 5%">
          &#160;
        </td>
        <td style="padding-left: 0.0px; width: 80%; border-bottom: solid black 1.0pt; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Description</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; width: 15%; text-align: center" valign="top">
          99.1
        </td>
        <td style="width: 5%">

        </td>
        <td style="padding-left: 0.0px; width: 80%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Press Release of Innodata Isogen, Inc., dated March 13, 2008,
            reporting fourth quarter and year end 2007 financial results.
          </p>
        </td>
      </tr>
    </table>
  </body>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5633067ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Innodata
      Isogen Reports Record 2007 Revenue and Strong Start to 2008</b></font>
    </p>
    <ul style="text-align: center">
      <li style="margin-bottom: 10.0px">
        <font style="font-size: 12pt; font-family: Times New Roman"><b>Strong
        Fourth Quarter 2007 Caps Banner Year</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-size: 12pt; font-family: Times New Roman"><b>Growth
        Highlighted by Increases in Recurring Revenue</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-size: 12pt; font-family: Times New Roman"><b>Knowledge
        Process Outsourcing is a Key Driver</b></font>
      </li>
      <li style="margin-bottom: 10.0px">
        <font style="font-size: 12pt; font-family: Times New Roman"><b>Company
        Sees Strong Start in 2008</b></font>
      </li>
    </ul>
    <p>
      NEW YORK--(BUSINESS WIRE)--<b>INNODATA ISOGEN, INC. (NASDAQ: INOD)</b>,
      a leading provider of knowledge process outsourcing services, as well as
      publishing and related information technology services, today announced
      revenues of $20,517,000 for the fourth quarter of 2007, up approximately
      95% from revenues of $10,547,000 in the fourth quarter of 2006.
    </p>
    <p>
      The company reported net income of $2,232,000, or $0.09 per diluted
      share, for the fourth quarter of 2007, as compared to a net loss of
      $829,000, or $0.03 per diluted share, for the fourth quarter of 2006.
    </p>
    <p>
      For the fiscal year ended December 31, 2007, revenues were $67,731,000,
      up 65% from revenues of $40,953,000 for the year ended December 31,
      2006. In that same period, the company earned $4,566,000, or $0.18 per
      diluted share, as compared to a loss of $7,323,000, or $0.30 per diluted
      share, in 2006.
    </p>
    <p>
      The results reported today, which surpass the company&#8217;s historical highs
      for both quarterly and annual revenues, were in line with the company&#8217;s
      generalized guidance.
    </p>
    <p>
      &#8220;Demand for our services continues to expand and that demand is driving
      revenue growth,&#8221; said Jack Abuhoff, chairman and CEO of Innodata Isogen.
      &#8220;Cost reduction is a powerful driver for many businesses that are
      implementing an outsourcing strategy, especially in a faltering economy.
    </p>
    <p>
      &#8220;In addition, we&#8217;re undertaking a greater number of knowledge process
      outsourcing (KPO) engagements with companies seeking to launch new
      information products into the marketplace, using our KPO services from
      the start.&#8221;
    </p>
    <p>
      Innodata Isogen also reported that its base of what it considers
      recurring revenue increased significantly in 2007, climbing more than
      69% from approximately $26 million at the end of 2006 to approximately
      $44 million at the end of 2007.
    </p>
    <p>
      According to Abuhoff, the company is off to a strong start in 2008. &#8220;We
      anticipate continued improvement in recurring revenue levels, driven by
      new KPO engagements and expansion of existing programs,&#8221; Abuhoff said.
      &#8220;We expect first quarter revenue to be approximately $18 million, or 40%
      year-over-year growth, as we have completed several 2007 projects and
      began ramp-up on a number of new 2008 programs. For the full year, we
      are anticipating double-digit growth in annual revenues.&#8221;
    </p>
    <p>
      Steven Ford, chief financial officer of Innodata Isogen, said, &#8220;In 2007,
      the company was able to drive a year-over-year revenue increase of $26.8
      million, or 65%. Approximately 44% of this revenue increase, close to
      $12 million, flowed to the bottom line. Our operating leverage on
      incremental revenue creates cash flow that we can re-invest in the
      business, either by building capability organically or through
      acquisition.&#8221;
    </p>
    <p>
      Abuhoff added, &#8220;In 2008, we will be increasing our investor relations
      activities. We are planning a regular series of investor meetings and
      presentations at investor conferences. We are also going to try to
      increase the scope and frequency of information that we flow to
      investors regarding significant new project wins and our KPO strategy.&#8221;
    </p>
    <p>
      <b>Timing of Conference Call with Q&amp;A</b>
    </p>
    <p>
      Innodata Isogen will conduct an earnings conference call, including a
      question &amp; answer period, at 11:00 AM ET today. You can participate in
      this call by dialing the following call-in numbers:
    </p>
    <p>
      Innodata Isogen has scheduled an investor conference call for 11:00 AM
      eastern time on that same day.
    </p>
    <p>
      The call-in numbers for the conference call are:
    </p>
    <table style="font-size: 8pt; width: 100%; font-family: Times New Roman; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          1-888-204-6674 (Domestic)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          1-913-312-0664 (International)
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          1-888-203-1112 (Domestic Replay)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          1-719-457-0820 (International Replay)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Pass code on replay only: 7660964
        </td>
      </tr>
    </table>
    <p>
      Investors are also invited to access a live Webcast of the conference
      call at the Investor Relations section of www.innodata-isogen.com.
      Please note that the Webcast feature will be in listen-only mode.
      Call-in or Webcast replay will be available for 30 days following the
      conference call.
    </p>
    <p>
      <b>About Innodata Isogen</b>
    </p>
    <p>
      Innodata Isogen, Inc. (NASDAQ: INOD) is a leading provider of knowledge
      process outsourcing (KPO) services, as well as publishing and related
      information technology (IT) services.
    </p>
    <p>
      We work as a product development partner to our clients, helping them
      meet their content creation and publishing challenges. We provide
      outsourcing services that draw upon onshore and offshore resources,
      proven project management and highly engineered processes and tools. We
      also help our clients improve their internal business operations with
      process and systems engineering.
    </p>
    <p>
      Our clients include leading enterprises in information-intensive
      industries such as media, publishing and information services, high
      technology, manufacturing, aerospace, defense, law, government and
      intelligence.
    </p>
    <p>
      Recent honors include EContent Magazine&#8217;s &#8220;EContent 100&#8221;, KMWorld
      Magazine&#8217;s &#8220;100 Companies That Matter&#8221;, and International Association of
      Outsourcing Professionals (IAOP) &#8220;Global Outsourcing Top 100.&#8221;
    </p>
    <p>
      Headquartered in Northern New Jersey, Innodata Isogen has offices and
      operations in the United States, the Philippines, India, Sri Lanka,
      Israel, China and France.
    </p>
    <p>
      <i>This release contains forward-looking statements that are made
      pursuant to the safe harbor provisions of the Private Securities
      Litigation Reform Act of 1995. The words &#8220;project,&#8221; &#8220;head start,&#8221;
      &quot;believe,&quot; &quot;expect,&quot; &#8220;should,&#8221; &quot;anticipate,&quot; &quot;indicate,&quot; &quot;point to&quot; and
      other similar expressions generally identify forward-looking statements,
      which speak only as of their dates.</i>
    </p>
    <p>
      <i>These forward-looking statements are based largely on the company&#8217;s
      current expectations, and are subject to a number of risks and
      uncertainties, including without limitation, the primarily at-will
      nature of the Company&#8217;s contracts with its customers and the ability of
      customers to reduce, delay or terminate projects, depressed market
      conditions, changes in external market factors, the ability and
      willingness of the company&#8217;s clients and prospective clients to execute
      business plans which give rise to requirements for digital content and
      professional services in knowledge processing, difficulty in integrating
      and deriving synergies from acquisitions, potential undiscovered
      liabilities of companies that Innodata Isogen acquires, changes in the
      company&#8217;s business or growth strategy, the emergence of new or growing
      competitors, various other competitive and technological factors, and
      other risks and uncertainties indicated from time to time in the
      company&#8217;s filings with the Securities and Exchange Commission.</i>
    </p>
    <p>
      <i>Actual results could differ materially from the results referred to
      in the forward-looking statements. In light of these risks and
      uncertainties, there can be no assurance that the results referred to in
      the forward-looking statements contained in this release will occur.</i>
    </p>
    <table style="font-size: 8pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="17" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>INNODATA ISOGEN, INC. AND SUBSIDIARIES</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(In thousands, except per share amounts)</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Three Months Ended</b></u>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Year Ended</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>December 31</b></u>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="7" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>December 31</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: center" colspan="3" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2007</b></u>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2006</b></u>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2007</b></u>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" colspan="3" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2006</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          <b>REVENUES</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          20,517
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          10,547
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          67,731
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          40,953
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>OPERATING COSTS AND EXPENSES:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Direct operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          14,059
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          8,392
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          48,581
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          34,141
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Selling and administrative expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,734
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,384
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          15,281
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          14,284
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Restructuring costs
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          50
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          604
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left" valign="top">
          Interest (income) &#8211; net
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (178
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (172
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (645
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (676
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left" valign="top">
          Total
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          18,615
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          11,654
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          63,217
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          48,353
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>INCOME (LOSS) BEFORE BENEFIT FROM INCOME TAXES</b>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,902
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          (1,107
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,514
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          (7,400
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          <b>BENEFIT FROM INCOME TAXES</b>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (330
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (278
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (52
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (77
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          <b>NET INCOME (LOSS)</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          2,232
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (829
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          4,566
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (7,323
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>INCOME (LOSS) PER SHARE:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          BASIC
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          .09
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (.03
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          .19
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (.30
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          DILUTED
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          .09
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (.03
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          .18
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (.30
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>WEIGHTED AVERAGE SHARES OUTSTANDING:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          BASIC
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          24,582
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          23,913
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          24,142
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          24,021
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          DILUTED
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          25,949
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          23,913
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          25,327
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          24,021
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    <table style="font-size: 8pt; font-family: Times New Roman; width: 100%; margin-bottom: 10.0px" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: center" colspan="5" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>INNODATA ISOGEN, INC. AND SUBSIDIARIES</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>CONDENSED CONSOLIDATED BALANCE SHEETS</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>DECEMBER 31, 2007 AND 2006</b>
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>(Dollars in Thousands)</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>December 31,</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2007</b></u>
          </p>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>2006</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          Unaudited
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          From audited
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            financial statements
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>ASSETS:</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current assets:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $14,751
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $13,597
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Accounts receivable-net
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          10,673
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          6,484
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Prepaid expenses and other current assets
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,117
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,589
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Refundable income taxes
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          453
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,062
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left" valign="top">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          202
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          190
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          28,196
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          22,922
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          7,160
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,564
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Other assets
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,037
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,912
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          381
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          256
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Goodwill
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          675
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          675
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          <b>TOTAL</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $38,449
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $30,329
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <b>LIABILITIES AND STOCKHOLDERS' EQUITY:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current liabilities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Accounts payable and accrued expenses
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $4,200
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $2,956
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Accrued salaries, wages and related benefits
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          5,244
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,554
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Income and other taxes
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,053
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,295
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left" valign="top">
          Current portion of long-term obligations
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          370
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          825
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left" valign="top">
          Total current liabilities
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          11,867
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          8,630
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          1,224
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          1,126
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Long term obligations
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          2,128
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          1,564
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          <b>STOCKHOLDERS' EQUITY</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          23,230
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          19,009
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          <b>TOTAL</b>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $38,449
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          $30,329
        </td>
      </tr>
    </table>
    <p style="text-align: center">

    </p>
    <p>
      CONTACT:<br>Innodata Isogen, Inc.<br>Steven L. Ford, 201-371-2510<br>Chief
      Financial Officer<br>sford@innodata-isogen.com<br>
    </p>
    <p>

    </p>
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