NEW YORK--(BUSINESS WIRE)--October 26, 2010--INNODATA ISOGEN, INC. (NASDAQ: INOD), today reported results for the third quarter ended September 30, 2010 and the first nine months of 2010.

"We’re seeing greater levels of activity in our core markets as publishers and information services companies rebound from a difficult environment, embrace new digital strategies and focus on operational excellence," said Jack Abuhoff, Chairman and CEO. "The significant investments we’ve made in new services and capabilities during this time are clearly taking root within our customer base, enabling Innodata Isogen to serve as a key strategic partner in their efforts.

"Within our eBook segment, we’re seeing a groundswell of activity in multiple segments driven by new possibilities that the iPad and other emerging devices bring to publishers who are seeking to develop a new generation of consumer experience," Abuhoff continued.

"I believe our strategy of providing complete outsourcing solutions to content-intensive customers across media, publishing, information services, educational and commercial publishing is sound, and will enable growth and profitability over the long term."

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 Global Services Media’s Global Services 100, 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						Nine Months Ended
	September 30,						September 30,

		2010			2009			2010			2009

Revenues	$	15,763		$	18,510		$	46,623		$	60,527

Operating costs and expenses:
Direct operating expenses		11,272			12,801			35,651			38,677
Selling and administrative expenses		4,018			3,752			11,923			10,422
Interest income, net		(49	)		(6	)		(84	)		(25	)

Total		15,241			16,547			47,490			49,074
Income (loss) before provision for income taxes		522			1,963			(867	)		11,453

Provision for income taxes		209			667			1,098			3,372
Net income (loss)	$	313		$	1,296		$	(1,965	)	$	8,081

Income (loss) per share:
Basic	$	0.01		$	0.05		$	(0.08	)	$	0.33
Diluted	$	0.01		$	0.05		$	(0.08	)	$	0.32

Weighted average shares outstanding:
Basic		25,400			24,670			25,400			24,354
Diluted		25,582			26,039			25,400			25,401


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

	September 30,		December 31,
	2010		2009

ASSETS

Current assets:
Cash and cash equivalents	$	16,917	$	26,480
Short term investments - other		7,168		-
Accounts receivable, net		9,676		11,741
Prepaid expenses and other current assets		3,674		3,899
Deferred income taxes		1,685		1,763

Total current assets		39,120		43,883

Property and equipment, net		4,583		5,559

Other assets		2,545		2,505

Long term investment - other		4,500		-

Deferred income taxes		987		943

Goodwill		675		675

Total assets	$	52,410	$	53,565


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	3,439	$	3,554
Accrued salaries, wages and related benefits		5,810		5,022
Income and other taxes		1,384		1,339
Current portion of long-term obligations		471		892
Deferred income taxes		416		487

Total current liabilities		11,520		11,294

Deferred income taxes		87		87

Income and other taxes – long term		420		-

Long term obligations		1,416		1,199

Stockholders' equity		38,967		40,985

Total liabilities and stockholders’ equity	$	52,410	$	53,565

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