Innodata Isogen Authorizes $2 Million Stock Repurchase Program

Business Wire,  May 13, 2008  

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NEW YORK -- INNODATA ISOGEN, INC. (NASDAQ: INOD), a leading provider of knowledge process outsourcing services, as well as publishing and related information technology services, today announced that its board of directors has authorized the repurchase of up to $2 million of its common stock in open market transactions.

The timing and nature of repurchases are subject to market and business conditions and applicable securities laws.

The buyback authorization replaces a $1 million authorization made in August, 2006, under which the company purchased approximately 182,000 shares for approximately $319,000.

The company intends to provide a buyback program update within the next two weeks.

"The authorization underscores the board's confidence both for the year and for the long-term," said Jack Abuhoff, chairman and CEO of Innodata Isogen. "In 2007, we increased revenues 65%. We believe that in 2008 we will accomplish several things: delivering another year of record revenue with strong second-half performance; aggressively managing our cost structure; and making further investment in the business to significantly expand our knowledge process outsourcing services.

"In terms of cost structure management, we have committed to take action in the second quarter that should reduce our existing annual fixed costs by approximately $1 million. Starting in the second quarter and continuing through the balance of the year, we will seek further operational efficiencies to regain some of the ground we lost due to foreign exchange, even as we begin to see signs that the U.S. dollar may be strengthening."

About Innodata Isogen

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.

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 Northern New Jersey, Innodata Isogen has offices and operations in the United States, the Philippines, India, Sri Lanka, China and France.

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" 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.

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