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<SEC-DOCUMENT>0001181431-08-048006.txt : 20080813
<SEC-HEADER>0001181431-08-048006.hdr.sgml : 20080813
<ACCEPTANCE-DATETIME>20080813110706
ACCESSION NUMBER:		0001181431-08-048006
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080813
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080813
DATE AS OF CHANGE:		20080813

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INFORMATION ANALYSIS INC
		CENTRAL INDEX KEY:			0000803578
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				541167364
		STATE OF INCORPORATION:			VA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22405
		FILM NUMBER:		081011947

	BUSINESS ADDRESS:	
		STREET 1:		11240 WAPLES MILL RD #400
		CITY:			FAIRFAX
		STATE:			VA
		ZIP:			22030
		BUSINESS PHONE:		7033833000

	MAIL ADDRESS:	
		STREET 1:		2222 GALLOWS ROAD
		STREET 2:		SUITE 300
		CITY:			DUNN LORING
		STATE:			VA
		ZIP:			22027
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd215951.htm
<DESCRIPTION>2008 2Q RESULTS
<TEXT>


<html><head>
<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
</head>
<body Bgcolor="white">

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<b>UNITED STATES </b></font></div>

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<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

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<b>Washington, D.C. 20549 </b></font></div>

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<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Current Report </b></font></div>

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<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

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<b>Date of Report (Date of earliest event reported):&nbsp;&nbsp;08/13/2008 </b></font></div>




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<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>INFORMATION ANALYSIS INC </b></font></div>

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<b>(Exact name of registrant as specified in its charter)</b></font></div>

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<b>Commission File Number:&nbsp;&nbsp;000-22405</b></font></div>

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<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>VA</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>54-1167364</b></font>
</div>
</td>
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<tr>
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<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(State or other jurisdiction of</b></font>
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</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(IRS Employer</b></font>
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<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>incorporation)</b></font>
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<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
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<b>Identification No.)</b></font>
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</td>
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<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>11240 Waples Mill Rd, Ste 201, Fairfax, VA 22030</b></font></div>


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<b>(Address of principal executive offices, including zip code)</b></font>
</div>

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<b>703-383-3000 </b></font>
</div>

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<b>(Registrant&#146;s telephone number, including area code)</b></font>
</div>



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<b> </b></font>
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<b>(Former name or former address, if changed since last report) </b></font>
</div>


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</div>




<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>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:<BR><BR>
</b></font>


</div>



<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</b>

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<p Align="center">





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<b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

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On August 13, 2008, Information Analysis Incorporated issued a press release reporting earnings and other financial results for its second quarter. A copy of this press release, captioned "Information Analysis Inc. Reports Second Quarter Results", is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Current Report on Form 8-K, including the exhibit, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.</font>
</div>

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<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
(d) Exhibits</div><div align="left" style="text-indent:4%"> 99.1 Press Release dated August 13, 2008, captioned:</div><div align="left" style="text-indent:4%"> "Information Analysis Inc. Reports Second Quarter Results"</font>
</div>

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<b>Signature(s) </b></font>
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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>
</div>

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<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000"></font>
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	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
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	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	INFORMATION ANALYSIS INC</font>
	</div>	</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>
<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Date: August 13, 2008</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
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	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	By:</font>
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	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	/s/&nbsp;&nbsp;&nbsp;&nbsp;Matthew Sands</font>
	</div>
	<hr Noshade Align="left" Color="#000000">
	</td>
</tr>

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	<td> <font Size="1">&nbsp;</font></td>
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	<td Valign="bottom" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Matthew Sands</font>
	</div>
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
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	<td Valign="bottom" Width="53%">
	<div><font Face="times New Roman" Size="2" Color="#000000">Controller</font>
	</div>
</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>



</table></div>





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<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Exhibit Index </b></font>
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	<b>Exhibit&nbsp;No.</b></font>
	</div>
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	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
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	<b>Description</b></font>
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	</td>
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	<td Valign="top" Align="left">
	<div Align="top"><font Face="times New Roman" Size="1" Color="#000000">
	EX-99.1</font>
	</div>

	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	Press release dated August 13, 2008</font>
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		</td>
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</body></html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>rrd215951_25484.htm
<DESCRIPTION>PRESS RELEASE DATED AUGUST 13, 2008
<TEXT>

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   <TITLE>DC4957.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing</TITLE>
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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="serif">Exhibit 99.1</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="center">
<TABLE><TR><TD align="center" nowrap>
<FONT size=2 face="serif">For additional information contact:</FONT><BR>
<FONT size=2 face="serif">Richard S. DeRose (703) 293-7901</FONT><BR>
<FONT size=2 face="serif">For release:</FONT><BR>
<FONT size=2 face="serif">August 13, 2008 at 9:00 a.m.</FONT><BR>
</TD></TR></TABLE>
</P>
<P align="center">
<B><FONT size=2 face="serif">Information Analysis Inc. Reports Second Quarter Results</FONT></B></P>
<P align="left">
<FONT size=2 face="serif">FAIRFAX, VIRGINIA &#150; Information Analysis, Inc. (OTCBB:IAIC) today reported results for the second fiscal quarter ended June 30, 2008. Revenues were &#36;1,697,000, from the &#36;2,557,000 reported in 2007&#146;s second
quarter. The Company reported a net loss of &#36;80,000, or &#36;(0.01) per share, compared to net income of &#36;17,000, or &#36;0.00 per share, in the second quarter 2007. IAI reported revenue of &#36;3,446,000 for six months ending June 30, 2008,
compared to &#36;5,162,000 reported for the same period in 2007. Net loss for the first six months of 2008 was &#36;198,000, or (&#36;0.01) per share, versus net income of &#36;112,000, or &#36;0.01 per share, in the comparable 2007
period.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&#147;The Company&#146;s revenue and earnings were down in the second quarter in comparison to the second quarter of 2007,&#148; Sandor Rosenberg, Chairman and Chief Executive Officer of IAI
said. &#147;However, we reduced our loss from the first quarter 2008. During the second quarter we started work on some new tasks which should show improvement in the third and fourth quarters. The company is continuing the active pursuit of the
conversion and system modernization business in addition to developing new business partnerships in the growth markets of security and virtualization.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&#147;We continue to pursue merger and acquisition opportunities.&#148;</FONT></P>
<P align="left">
<B><FONT size=2 face="serif">About Information Analysis Incorporated</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Information Analysis Incorporated (</FONT><U><FONT color="#0000ff" size=2 face="serif">www.infoa.com)</FONT></U><FONT size=2 face="serif">, headquartered in Fairfax, Virginia, is an information
technology services company. The Company is a web solution provider and software conversion specialist, modernizing legacy systems and extending their reach to the Internet world.</FONT></P>
<P align="left">
<B><FONT size=2 face="serif">Additional information for investors</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements
involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year
ended December 31, 2007 and in other filings with the Securities and Exchange Commission.</FONT></P>
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<FONT size=2 face="serif">-- more --</FONT></P>

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 &nbsp; &nbsp;<B><FONT size=2 face="serif">Information Analysis Reports Second Quarter Results</FONT></B>&nbsp;
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&nbsp;
	</TD>
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&nbsp;
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<FONT size=2 face="serif">August 13, 2008</FONT>&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
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 &nbsp; &nbsp;<FONT size=2 face="serif">Page 2 of </FONT><FONT size=2 face="sans-serif">4</FONT>&nbsp;
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<B><FONT size=2 face="serif">Information Analysis Incorporated</FONT></B>&nbsp;
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&nbsp;
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<B><FONT size=2 face="serif">Condensed Income Statements</FONT></B>&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;	</TD>
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&nbsp;
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<FONT size=2 face="serif">Three months ended June 30,</FONT>&nbsp;
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<I><FONT size=2 face="serif">(in thousands, except per share data; unaudited)</FONT></I>&nbsp;
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&nbsp;
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<U><FONT size=2 face="serif">2008</FONT></U>&nbsp;
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&nbsp;
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<U><FONT size=2 face="serif">2007</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Sales:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Professional fees</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">1,345</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">1,777</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Software sales</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">352</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">780</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total revenue</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">1,697</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">2,557</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Cost of goods sold and services provided:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Cost of professional fees</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">1,035</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">1,363</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Cost of software sales</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">263</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">641</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total cost of sales</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">1,298</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">2,004</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Gross margin</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">399</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">553</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Operating expenses:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Selling general &amp; administrative</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">483</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">542</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Operating (loss) income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">(84)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">11</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Other income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">4</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">6</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">(Loss) income before income taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">(80)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">17</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Provision for income taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">--</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">--</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Net (loss) income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">(80</FONT></U><FONT size=2 face="serif">)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">17</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Comprehensive income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">(80</FONT></U><FONT size=2 face="serif">)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">17</FONT></U>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Net (loss) income per share:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Basic and diluted</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">(0.01</FONT></U><FONT size=2 face="serif">)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">0.01</FONT></U>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Shares used in calculating earnings per share:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Basic</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">11,196,760</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=center>
<FONT size=2 face="serif">11,196,760</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Diluted</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">11,196,760</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=center>
<FONT size=2 face="serif">11,398,487</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">-- more --</FONT></P>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_3"></A>

<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=75% nowrap colspan=5 align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Information Analysis Reports Second Quarter Results</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=center>
<FONT size=2 face="serif">August 13, 2008</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Page 3 of </FONT><FONT size=2 face="sans-serif">4</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=center>
<B><FONT size=2 face="serif">Information Analysis Incorporated</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=right>
<B><FONT size=2 face="serif">Condensed Income Statements</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=38% nowrap colspan=5 align=right>
<FONT size=2 face="serif">Six months ended June 30,</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<I><FONT size=2 face="serif">(in thousands, except per share data; unaudited)</FONT></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">2008</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=center>
<U><FONT size=2 face="serif">2007</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Sales:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Professional fees</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">2,832</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">3,677</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Software sales</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">614</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">1,485</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total revenue</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">3,446</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">5,162</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Cost of goods sold and services provided:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Cost of professional fees</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">2,157</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">2,821</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Cost of software sales</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">446</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">1,182</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total cost of sales</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">2,603</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">4,003</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Gross margin</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">843</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">1,159</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Operating expenses:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Selling general &amp; administrative</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">1,051</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">1,059</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Operating (loss) income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">(208)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Other income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">10</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">12</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">(Loss) income before income taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">(198)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="serif">112</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Provision for income taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">--</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">--</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Net (loss) income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">(198</FONT></U><FONT size=2 face="serif">)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">112</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Comprehensive income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">(198</FONT></U><FONT size=2 face="serif">)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">112</FONT></U>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Net (loss) income per share:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Basic and diluted</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">(0.01</FONT></U><FONT size=2 face="serif">)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<U><FONT size=2 face="serif">0.01</FONT></U>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
<FONT size=2 face="serif">Shares used in calculating earnings per share:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Basic</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">11,196,760</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=center>
<FONT size=2 face="serif">11,196,760</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=49% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Diluted</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">11,196,760</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=6% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=center>
<FONT size=2 face="serif">11,401,905</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">-- more --</FONT></P>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_4"></A>

<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
<B><FONT size=2 face="serif">Information Analysis Reports Second Quarter Results</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=center>
<FONT size=2 face="serif">August 13, 2008</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
<FONT size=2 face="serif">Page 4 of </FONT><FONT size=2 face="sans-serif">4</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=center>
<B><FONT size=2 face="serif">Information Analysis Incorporated</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=center>
<B><FONT size=2 face="serif">Balance Sheets</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=center>
<FONT size=2 face="serif">As of</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=center>
<FONT size=2 face="serif">As of</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<I><FONT size=2 face="serif">(in thousands)</FONT></I>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">June 30, 2008</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">December 31, 2007</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">ASSETS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Current assets:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Cash and cash equivalents</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">1,061</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">1,223</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accounts receivable, net</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">1,468</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">1,560</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Prepaid expenses</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">381</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">462</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">4</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">4</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other receivables</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">--</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">3</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total current assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">2,914</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">3,252</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Fixed assets, net</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">68</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">79</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Other assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">9</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">9</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Total assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">2,991</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">3,340</FONT></U>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">LIABILITIES &amp; STOCKHOLDERS' EQUITY</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Current liabilities:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accounts payable</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">493</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">721</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred revenue</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">482</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">394</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accrued payroll and related liabilities</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">252</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">258</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other accrued liabilities</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">38</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">45</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Income taxes payable</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">3</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">3</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=center>
<FONT size=2 face="serif">Total liabilities</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">1,268</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">1,421</FONT></U>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=9>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Common stock, par value &#36;0.01, 30,000,000 shares authorized;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">12,839,376 shares issued, 11,196,760 outstanding</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">128</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">128</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Additional paid in capital</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<FONT size=2 face="serif">14,548</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<FONT size=2 face="serif">14,546</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Accumulated deficit</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=center>
<FONT size=2 face="serif">(12,023)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=center>
<FONT size=2 face="serif">(11,825)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Less treasury stock; 1,642,616 shares at cost</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=center>
<U><FONT size=2 face="serif">(930)</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=center>
<U><FONT size=2 face="serif">(930)</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total stockholders' equity</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">1,723</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">1,919</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=52% nowrap align=left>
 &nbsp;<FONT size=2 face="serif">Total liabilities and stockholders' equity</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=5% nowrap align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=14% nowrap align=right>
<U><FONT size=2 face="serif">2,991</FONT></U>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=3% nowrap align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=16% nowrap align=right>
<U><FONT size=2 face="serif">3,340</FONT></U>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="center">
<FONT size=2 face="serif">-- end --</FONT></P>

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