October 15, 2002 - EBSCO Selects Innodata for New XML Data Conversion Project and Ongoing Process Outsourcing

NEW YORK, Oct 15, 2002 (BUSINESS WIRE) --

Expect revenues of $2.5 million year one and $500K per year ongoing based upon present customer requirements

EBSCO is one of the world's largest publishers of secondary databases and electronic reference information.

Innodata estimates that the project should generate approximately $2.5 million in revenues through 2003 and approximately $500K annually ongoing, based upon client's present requirements.

"EBSCO is a relationship success story that we're very proud of," said Jack Abuhoff, chairman and CEO of Innodata. "We've enabled them to manage their operating costs, while giving them confidence their mission critical information processing is being done in a reliable, technologically advanced and efficient manner."

"Finding better ways to serve our large, very savvy base of information consumers is part of the culture at EBSCO," said Tim Collins, CEO of EBSCO. "Innodata is supporting our efforts by providing a broad range of strategic content services, allowing us to focus more effectively on our clients and our core competitive advantages."

Abuhoff continued, "After enduring a tough 2002, we're pleased our client base seems to once again be moving ahead with initiatives. This is the third significant win we've announced in the last two months. In mid-August, we announced that we won a large project with $6 million in potential revenues. Just last week, we announced a second new project estimated at $9 million. With the win we're announcing today, that totals $17 million in large new projects we've announced in just the past two months."

Innodata helps its clients - blue-chip publishers and Global 2000 enterprises, large archives and research libraries, government agencies and other information-intensive organizations - collect, convert and digitize content, structure and transform it into XML and other formats, and enhance and re-purpose it for electronic and print distribution.

The company's high-value digital content services provide a complete back-end solution for content owners, aggregators and publishers looking to cut costs and focus on core competencies. These services include:

• Data Aggregation
• Data Analysis and Architecture
• Data Conversion
• XML Transformation and Training
• Systems and Data Integration
• Content Enhancement and Editorial Services
• Single-source, Multi-channel Publishing Systems

About EBSCO

EBSCO Publishing, EBSCO Subscription Services and EBSCO Book Services form the EBSCO Information Services group. EBSCO provides integrated information resources and management solutions worldwide through print and electronic journal subscription services, reference database development and production, online multi-database access and e-commerce book procurement. Based in Birmingham, Alabama, EBSCO upholds relationships with 60,000 publishers and maintains a database of more than 282,000 serial titles. For more information, visit www.ebsco.com.

About Innodata

Innodata (www.innodata.com) is the world's largest dedicated provider of digital content services and solutions. Innodata delivers content manufacturing, content conversion, systems engineering, and education in XML and related standards to leading companies in fields as diverse as publishing, telecommunications, healthcare, and defense. Innodata's seven content manufacturing centers based in Asia provide peerless outsourced support to companies worldwide, and its ISOGEN division (www.isogen.com) offers advanced systems engineering and education at four U.S.-based solutions centers. In 2001, Fortune and Business Week each rated Innodata as one of the 100 top-performing public companies in the United States.

This release may contain certain forward-looking statements, including without limitation, statements concerning the Company's operations, economic performance, and financial condition. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," 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, the ability and willingness of the Company's clients and prospective clients to execute business plans which give rise to requirements for digital content services and professional services in knowledge processing, difficulty in integrating and deriving synergies from acquisitions, potential undiscovered liabilities of companies that Innodata acquires, changes in the Company's 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 the Company's 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 in fact occur.

CONTACT:
Innodata Corporation
Media:
Al Girardi, 201/488-1200, ext. 5392
al_girardi@inod.com

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