June 27, 2001 - Innodata Requests Bloomberg News to Correct Report Regarding Innodata Project

NEW YORK--(BUSINESS WIRE)--June 27, 2001--INNODATA CORPORATION (NASDAQ: INOD) has requested that Bloomberg News retract a report its New Delhi newsroom made yesterday which incorrectly stated that a recent staff reduction in the Company's India production facility related to a cancellation of the Historical Newspaper Project.

Abuhoff stated, "The project has not been cancelled. The staff reduction in India is attributable to our decision to keep the project only at our XML Content Factory in the Philippines at this time."

About Innodata

Innodata is the premier provider of digital content outsourcing services. The company offers a "single solution" for companies needing to create high-value, large-scale Web content. This approach empowers companies to become market leaders by focusing on product development and marketing while partnering with Innodata to build content. Innodata's digital content outsourcing services include strategic and technical consulting for content initiatives across multiple digital channels; content architecture services; data conversion; metadata creation; and digital content management. Through its XML Content Factory, it builds large-scale XML-compliant information resources. Innodata's clients range from leading Global 1000 companies to new media companies, and include some of the largest, most prestigious publishers of digital content. Its web site is http://www.innodata.com.

This release contains certain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, forward-looking statements concerning the strategic alliance agreement referred to herein. The words "believe," "expect," "anticipate," "predict" and other similar expressions generally identify forward-looking statements, which speak only as of their dates. 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, changes in external market factors, changes in the Company's business or growth strategy, changes in client requirements, the ability of the Company and the client company to perform their respective obligations in respect of the project referred to herein or an inability to execute their respective strategies due to changes in their industries or the economy generally, and various other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission. 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 in fact occur.

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