NEW YORK--(BUSINESS WIRE)--July 27, 2010--INNODATA ISOGEN, INC. (NASDAQ: INOD), today reported results for the second quarter ended June 30, 2010 and the first six months of 2010.

Innodata Isogen also announced that its board of directors has authorized the repurchase of up to $2.1 million of its common stock in open market or private transactions. The timing and nature of repurchases are subject to market and business conditions and applicable securities laws. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice. The repurchase authorization replaces a $2.0 million authorization made in May 2008 under which the company bought approximately 606,000 shares for approximately $1.9 million.

“At every level, our organization has been focused on recovering from the operating issues that impacted us earlier in 2010,” said Jack Abuhoff, Chairman and CEO of Innodata Isogen. “We continue to see that publishers and other enterprise customers have a real need for the kinds of editorial and production services that Innodata Isogen is known for, and I remain confident that we are taking the necessary steps to resume growth and address our market opportunity over time.

“Our board’s decision to authorize the share repurchase program underscores their confidence in our market opportunity and long-term strategy. At the same time, we continue to benefit from a strong balance sheet that will support continued investment in our business.”

Innodata Isogen will conduct an earnings conference call, including a question & answer period, at 11AM ET today. You can participate in this call by dialing the following call-in numbers:

Investors are also invited to access a live Webcast of the conference call at the Investor Relations section of www.innodata-isogen.com. Please note that the Webcast feature will be in listen-only mode.

Call-in or Webcast replay will be available for 30 days following the conference call.

Innodata Isogen (NASDAQ: INOD), is a leading provider of knowledge process outsourcing (KPO) services, as well as publishing and related information technology (IT) services.

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. 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.

Recent honors include EContent Magazine’s EContent 100, KMWorld Magazine’s 100 Companies That Matter in Knowledge Management, the International Association of Outsourcing Professionals’ (IAOP) Global Outsourcing Top 100, D&B India’s Leading ITeS and BPO Companies and the Black Book of Outsourcing’s Top List of Leading Outsourcing Providers to the Printing and Publishing Business.

Headquartered in the New York metro area, Innodata Isogen has offices and operations in the United States, the United Kingdom, France, Israel, China, India, Sri Lanka, and the Philippines.

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 “project,” “head start,” "believe," "expect," “should,” "anticipate," "indicate," "point to," “forecast,” “likely” and other similar expressions generally identify forward-looking statements, which speak only as of their dates.

These forward-looking statements are based largely on our 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 cancel projects, including projects that the company regards as recurring; continuing revenue concentration in a limited number of clients; continuing reliance on project-based work; inability to replace projects that are completed, cancelled or reduced; depressed market conditions; changes in external market factors; the ability and willingness of our customers and prospective customers 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 we acquire; changes in our 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 our filings with the Securities and Exchange Commission.

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.

INNODATA ISOGEN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,

	2010			2009			2010			2009

Revenues	$	15,386		$	20,905		$	30,860		$	42,017

Operating costs and expenses:
Direct operating expenses		12,107			13,469			24,379			25,876
Selling and administrative expenses		3,770			3,063			7,905			6,670
Interest income, net		(33	)		(6	)		(35	)		(19	)

Total		15,844			16,526			32,249			32,527
Income (loss) before provision for income taxes		(458	)		4,379			(1,389	)		9,490

Provision for income taxes		416			1,175			889			2,705
Net income (loss)	$	(874	)	$	3,204		$	(2,278	)	$	6,785
Income (loss) per share:
Basic	$	(.03	)	$	.13		$	(.09	)	$	.28
Diluted	$	(.03	)	$	.13		$	(.09	)	$	.27
Weighted average shares outstanding:
Basic		25,419			24,249			25,400			24,194
Diluted		25,419			25,373			25,400			24,912

INNODATA ISOGEN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	June 30,		December 31,
	2010		2009

ASSETS

Current assets:
Cash and cash equivalents	$	19,448	$	26,480
Short term investments - other		5,577		-
Accounts receivable, net		10,140		11,741
Prepaid expenses and other current assets		2,554		3,899
Deferred income taxes		1,677		1,763

Total current assets		39,376		43,883

Property and equipment, net		5,130		5,559

Other assets		2,303		2,505

Long term investment - other		2,000		-

Deferred income taxes		909		943

Goodwill		675		675

Total assets	$	50,393	$	53,565


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	3,173	$	3,554
Accrued salaries, wages and related benefits		5,274		5,022
Income and other taxes		1,354		1,339
Current portion of long-term obligations		572		892
Deferred income taxes		42		487

Total current liabilities		10,415		11,294

Deferred income taxes		87		87

Income and other taxes – long term		360		-

Long term obligations		1,325		1,199

Stockholders' equity		38,206		40,985

Total liabilities and stockholders’ equity	$	50,393	$	53,565

CONTACT:
Innodata Isogen, Inc.
Corey D. Luskin, 201-371-8055
Vice President
cluskin@innodata-isogen.com