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<SEC-DOCUMENT>0001157523-09-002008.txt : 20090311
<SEC-HEADER>0001157523-09-002008.hdr.sgml : 20090311
<ACCEPTANCE-DATETIME>20090311083537
ACCESSION NUMBER:		0001157523-09-002008
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20090311
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090311
DATE AS OF CHANGE:		20090311

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:		09671226

	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>a5914724.htm
<DESCRIPTION>INNODATA ISOGEN, INC. 8-K
<TEXT>
<html>
  <head>
    <title></title>
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<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-family: Times New Roman; font-size: 8pt">
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 18pt"><b>UNITED
      STATES</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 18pt"><b>SECURITIES
      AND EXCHANGE COMMISSION</b></font><font style="font-family: Times New Roman; font-size: 18pt"><br style="font-family: Times New Roman; font-size: 18pt"></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 10pt"><b>Washington,
      D.C. 20549</b></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 18pt"><b>FORM
      8-K</b></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman"><br style="font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 10pt"><b>CURRENT
      REPORT</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt"><b>Pursuant
      to Section 13 or 15 (d) of the Securities Exchange Act of 1934</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt">Date
      of Report: March 11, 2009</font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">(Date of
      earliest event reported):</font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 18pt"><b>INNODATA
      ISOGEN, INC.</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font><br><br><br>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; width: 100%; font-family: Times New Roman; font-size: 10pt">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Delaware</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 34%; text-align: center; white-space: nowrap; padding-right: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>0-22196</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center; white-space: nowrap; padding-right: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>13-3475943</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or other jurisdiction of
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            incorporation)
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 34%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission File Number)
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (I.R.S. Employer
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>

    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; width: 100%; font-family: Times New Roman; font-size: 10pt">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Three University Plaza</b>
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Hackensack, NJ 07601</b>
          </p>
        </td>
        <td style="width: 34%">
          &#160;
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center; white-space: nowrap; padding-right: 0.0px">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>07601</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-family: Times New Roman; font-size: 10pt">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="width: 34%">

        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <font style="font-family: Times New Roman; font-size: 10pt">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt">
      </font><font style="font-family: Times New Roman; font-size: 10pt"><b>(201)
      371-2828</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt">(Registrant&#8217;s
      telephone number, including area code)</font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt"><b>N/A</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font><font style="font-family: Times New Roman; font-size: 10pt">(Former
      name or former address, if changed since last report)</font>
    </p>
    <p style="text-align: left">
      <font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt">
      </font><font style="font-family: Times New Roman; font-size: 10pt">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-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-family: Times New Roman; font-size: 10pt">
      Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-family: Times New Roman; font-size: 10pt">
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
      CFR 240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-family: Times New Roman; font-size: 10pt">
      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-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-family: Times New Roman; font-size: 10pt">
      Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))</font>
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <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-family: Times New Roman; font-size: 10pt"><b>Item
      2.02&#160;&#160;&#160;&#160;&#160;</b></font><b><u><font style="font-family: Times New Roman; font-size: 10pt">Results
      of Operations and Financial Condition.</font></u></b>
    </p>
    <p>
      <font style="font-size: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;On March 11, 2009, Innodata Isogen,
      Inc. issued a press release announcing its fourth quarter and year end
      2008 financial results.&#160;&#160;A copy of the press release is attached hereto
      as Exhibit 99.1.</font>
    </p>
    <p>
      <font style="font-size: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;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 &#8220;filed&#8221; for
      purposes of Section 18 of the Securities Exchange Act of 1934, as
      amended (the &#8220;Exchange Act&#8221;), 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>
    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt">
      </font><font style="font-family: Times New Roman; font-size: 10pt"><b>Item
      9.01&#160;&#160;&#160;&#160;&#160;</b></font><b><u><font style="font-family: Times New Roman; font-size: 10pt">Financial
      Statements and Exhibits.</font></u></b>
    </p>
    <p style="white-space: nowrap">
      <font style="font-size: 10pt">99.1 &#160;&#160;&#160;&#160;&#160;Press release dated March 11,
      2009.</font>
    </p>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">2</font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-family: Times New Roman; font-size: 10pt"></font>
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <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-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font></u>
    </p>
    <p style="text-indent: 30.0px">
      <font style="font-family: Times New Roman; font-size: 10pt">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 thereunto duly authorized.</font>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; width: 100%; font-family: Times New Roman; font-size: 10pt">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            INNODATA ISOGEN, INC.
          </p>
        </td>
        <td style="width: 17%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left" colspan="2">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 17%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 17%; text-align: left">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 5%; text-align: left">
          Date:
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 45%; text-align: left">
          March 11, 2009
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 3%; text-align: left">
          By:
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 30%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 17%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

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

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 30%; text-align: left; border-bottom: solid black 1.0pt">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Steven L. Ford
          </p>
        </td>
        <td style="width: 17%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

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

        </td>
        <td valign="top" style="padding-left: 10.0px; width: 30%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Steven L. Ford
          </p>
        </td>
        <td style="width: 17%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

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

        </td>
        <td valign="top" style="padding-left: 10.0px; width: 30%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Executive Vice President
          </p>
        </td>
        <td style="width: 17%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

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

        </td>
        <td valign="top" style="padding-left: 10.0px; width: 30%; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            and Chief Financial Officer
          </p>
        </td>
        <td style="width: 17%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt">3</font>
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <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"><b>INDEX TO EXHIBITS</b></font></u>
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; width: 100%; font-family: Times New Roman; font-size: 10pt">
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: center" colspan="3">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><b>Exhibit No.</b></u>
          </p>
        </td>
        <td colspan="2">
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt">
          <b>Description</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; white-space: nowrap; padding-right: 0.0px">
          99.1
        </td>
        <td colspan="2">
          &#160;
        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Press Release of Innodata Isogen, Inc., dated March 11, 2009,
          reporting fourth quarter and year end 2008 financial results.
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p style="text-align: center">

    </p>
  </body>
</html>
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     PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
     "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">-->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5914724ex99_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-family: Times New Roman; font-size: 12pt"><b>Innodata
      Isogen Reports Second Straight Year of Record Revenue; Strong Sequential
      Increase in Revenue and Earnings in the Fourth Quarter of 2008</b></font>
    </p>
    <ul style="text-align: center">
      <li style="margin-bottom: 10.0px">
        <font style="font-family: Times New Roman; font-size: 12pt"><b>Anticipates
        Continuing Gains in Revenue and a Significant Increase in Earnings in
        Q1 2009 and Overall Strong Performance in 2009</b></font>
      </li>
    </ul>
    <p>
      NEW YORK--(BUSINESS WIRE)--March 11, 2009--<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 revenue of $20,398,000 for the fourth quarter
      of 2008, up approximately 11% from revenue of $18,333,000 in the third
      quarter of 2008 and essentially on par with revenue of $20,517,000 in
      the fourth quarter of 2007.
    </p>
    <p>
      The company reported net income of $5,607,000, or $0.23 per diluted
      share, for the fourth quarter of 2008, up from net income of $1,108,000,
      or $0.05 per diluted share, in the third quarter of 2008, and up from
      $2,232,000, or $0.09 per diluted share, in the fourth quarter of 2007.
    </p>
    <p>
      Earnings for the fourth quarter of 2008 included a tax benefit of
      $3,340,000, or $0.14 per diluted share, from the reversal of a deferred
      tax valuation allowance, and reflected a charge of $475,000, or
      approximately $0.02 per diluted share, resulting from a workforce
      reduction announced in December.
    </p>
    <p>
      Excluding the reversal of the valuation allowance and the restructuring
      charge, earnings in the fourth quarter of 2008 would have been
      $2,742,000, or $0.11 per diluted share.
    </p>
    <p>
      For the fiscal year ended December 31, 2008, revenues were $75,001,000,
      up 11% from revenues of $67,731,000 for the year ended December 31,
      2007. The company earned $7,584,000, or $0.30 per diluted share, in
      2008, as compared to $4,566,000, or $0.18 per diluted share, in 2007.
    </p>
    <p>
      Excluding the reversal of the valuation allowance and the restructuring
      charge, earnings for the fiscal year ended December 31, 2008 would have
      been $4,719,000, or $0.19 per diluted share, up from $4,566,000, or
      $0.18 per diluted share, in 2007.
    </p>
    <p>
      Innodata Isogen also reported that recurring revenue climbed to
      approximately 68% of total revenue in 2008, up from 61% of total revenue
      in 2007.
    </p>
    <p>
      The results reported today surpassed the company&#8217;s historical high for
      annual revenues and were in line with the company&#8217;s recent generalized
      guidance.
    </p>
    <p>
      According to Jack Abuhoff, chairman and CEO of Innodata Isogen, the
      company is off to a strong start in 2009. &#8220;We anticipate continued
      improvement in top line growth, driven by expansion of existing
      knowledge process outsourcing (KPO) programs and new engagements,&#8221;
      Abuhoff said. &#8220;We expect first quarter revenue to be 5% to 10% higher
      than fourth quarter 2008 revenue, with a significant increase in
      profitability. Moreover, while we expect variability on a quarterly
      basis, we anticipate continued growth in annual revenues and earnings in
      2009.&#8221;
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <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>
      &#8220;Our gross profit, defined as revenue less direct operating expenses,
      increased &#8211; from 28% of revenue in the third quarter to 36% of revenue
      in the fourth quarter &#8211; through a combination of cost reductions,
      increased operating efficiency, continued growth in our KPO business and
      a more favorable foreign exchange environment,&#8221; stated Steven Ford,
      chief financial officer of Innodata Isogen. &#8220;In the first quarter of
      2009, we expect significant improvements in earnings, as a result of
      multiple factors: first, a full quarter&#8217;s benefit from the cost
      restructure we announced in December; second, continuing benefits of
      scale from revenue increases without substantial fixed operating costs
      or SG&amp;A increases; and third, continued strengthening of the U.S.
      dollar.&#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>
      The call-in numbers for the conference call are:
    </p>
    <p>
      1-888-632-5023 (Domestic)
    </p>
    <p>
      1-913-312-0852 (International)
    </p>
    <p>
      1-888-203-1112 (Domestic Replay)
    </p>
    <p>
      1-719-457-0820 (International Replay)
    </p>
    <p>
      Pass code on replay only: 3423088
    </p>
    <p>
      Investors are also invited to access a live Webcast of the conference
      call at the Investor Relations section of <u>www.innodata-isogen.com</u>.
      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>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <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>
      <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's
      current expectations, and are subject to a number of risks and
      uncertainties, including without limitation, the primarily at-will
      nature of the company's contracts with its customers and the ability of
      customers to reduce, delay or terminate projects, customers are not
      contractually required to enter into or continue projects that the
      company regards as recurring, depressed market conditions, changes in
      external market factors, the ability and willingness of the company'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'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'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>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <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>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; width: 100%; font-family: Times New Roman; font-size: 8pt">
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="9">
          <b>INNODATA ISOGEN, INC. AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="9">
          <b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="9">
          <b>(In thousands, except per share amounts)</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="9">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Unaudited)
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="9">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>Three Months Ended</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>Year Ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>December 31</b>
        </td>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" colspan="3">
          <b>December 31</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

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

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          <b>2008</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          <b>2007</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          <b>2008</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          <b>2007</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          $20,398
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          $75,001
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Operating costs and expenses</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          13,065
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          53,525
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          48,581
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Selling and administrative expenses
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          4,353
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          16,134
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          15,281
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left">
          Interest (income), net
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          (39)
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          (206)
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          17,379
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          69,453
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          3,019
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          5,548
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          (2,588)
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          (2,036)
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          (52)
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left">
          <b>Net income</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          $ 5,607
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          $ 7,584
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Income per share:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left">
          Basic
        </td>
        <td>

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

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          $ .31
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          $ .19
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left">
          Diluted
        </td>
        <td>

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

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

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

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Weighted average shares outstanding:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left">
          Basic
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          24,119
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          24,390
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          24,142
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left">
          Diluted
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          24,376
        </td>
        <td>

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

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          25,137
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          25,327
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; width: 100%; margin-left: 0pt; text-indent: 0pt">
      <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>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; width: 100%; font-family: Times New Roman; font-size: 8pt">
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="4">
          <b>INNODATA ISOGEN, INC. AND SUBSIDIARIES</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="4">
          <b>CONDENSED CONSOLIDATED BALANCE SHEETS</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="4">
          <b>DECEMBER 31, 2008 AND 2007</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center" colspan="4">
          <b>(Dollars in Thousands)</b>
        </td>
      </tr>
      <tr>
        <td colspan="4">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>December 31, </b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>December 31, </b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          <b>2008</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          <b>2007</b>
        </td>
      </tr>
      <tr>
        <td>

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

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Cash and cash equivalents
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          $13,875
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          $14,751
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Accounts receivable-net
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          14,017
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          10,673
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Prepaid expenses and other current assets
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          2,246
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          2,117
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Refundable income taxes
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          453
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left">
          Deferred income taxes
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          4,115
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Total current assets
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          34,253
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Property and equipment, net
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          6,726
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Other assets
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          2,825
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Deferred income taxes
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          906
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Goodwill
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          675
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 35.0px; text-align: left">
          <b>TOTAL</b>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          $45,385
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Accounts payable and accrued expenses
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          $3,593
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          $4,200
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Accrued salaries, wages and related benefits
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          5,289
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          5,244
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Income and other taxes
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          1,649
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; white-space: nowrap; padding-right: 0.0px">
          2,053
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left">
          Current portion of long-term obligations
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          915
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left">
          Total current liabilities
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          11,446
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Deferred income taxes
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          2,080
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Long term obligations
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          1,671
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          <b>STOCKHOLDERS' EQUITY</b>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px">
          30,188
        </td>
        <td>

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

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 40.0px; text-align: left">
          <b>TOTAL</b>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px">
          $45,385
        </td>
        <td>

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

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

    </p>
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</SEC-DOCUMENT>
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