Innodata Isogen Announces Five-Year KPO Contract Valued at $1.5 Million Per Year with Major Scientific Journal Publisher

NEW YORK, July 8, 2008-- INNODATA ISOGEN, INC. (NASDAQ: INOD), a leading provider of knowledge process outsourcing (KPO) services, announced today that it has signed an agreement with a leading scientific journal publisher to take over responsibility for a wide range of the publisher’s content production and editorial services activities.

Under the terms of the agreement, Innodata Isogen will provide a range of editorial services for all of the publisher’s more than 80 journals, which include some of the world’s leading academic publications in physical sciences. Innodata Isogen expects the engagement to be worth more than $1.5 million per year in recurring revenue.

Innodata Isogen subject matter experts have edited some of the publisher’s most prestigious journals for the past four to five years, according to Jan Palmen, senior vice president of Innodata Isogen’s Publishing Practice.

“With our extensive expertise in the physical and medical sciences, we’re well suited to help this publisher continue to provide high-quality content to its readers, which include many of the world’s most prominent scientists and physicists,” Palmen said. “Providing editorial services represents just one part of our entire continuum of content manufacturing services, from authoring to production.”

Palmen added that the agreement further validates the company’s execution of its KPO strategy in this sector. With more than 1,500 subject matter experts, Innodata Isogen provides a wide range of editorial and content creation services that help its clients lower costs and bring new information products to market.

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, Israel, 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.

Company Contact
Steven L. Ford
Executive Vice President and CFO
(201) 371-2510
sford@innodata-isogen.com