Innodata Expands European Presence.

Business Editors

XML Europe 2002

NEW YORK--(BUSINESS WIRE)--May 3, 2002

INNODATA CORPORATION (NASDAQ: INOD) announced today that it has bolstered its commitment to the European market by creating a presence in Stockholm, Sweden and that its ISOGEN International division has been chosen to present three papers at the XML Europe tradeshow May 20-23 in Barcelona, Spain.

Our Stockholm outpost will provide local project and engagement support for content, systems, and training services, and provide an additional base of operations for business development. Innodata presently provides services to some of Europe's largest publishers and knowledge-driven corporations. In 2001, Innodata derived approximately 13% of its revenues from European clients.

Jack S. Abuhoff, Innodata's Chairman and Chief Executive Officer, stated, "We are making this move in response to clear opportunities we see in the European market - with existing clients and prospects - for content manufacturing services and XML-based systems and training."

XML Europe, sponsored by IDEAlliance and OASIS, is widely considered to be the premier European forum for the XML community, spanning electronic business, publishing, and the Internet, software, and standards development. This year's conference theme, "Down to Business: Getting Serious About XML," reflects the growing interest among publishers and corporations to deploy XML-based solutions. The conference sponsors expect it to draw over 1,000 participants.

ISOGEN International, a longtime contributor to thought leadership within the XML community, will present three papers at the conference. The first, entitled "Enabling Low-Cost XML-Aware Searching Capable of Complex Querying," by Brandon Jockman and co-authored by Eliot Kimber and Joshua Reynolds, will describe the development of an XML-aware full-text search engine. The second, entitled "XML in a Distributed World: Exposing DOM (Document Object Model)/Groves through CORBA (Common Object Request Broker Architecture)," also by Joshua Reynolds and co-authored by Eliot Kimber, provides a case study illustrating some of the challenges and solutions to distributed DOM/Grove processing. Lastly, Donald Smith will present "The XML Learning Framework," addressing the challenges of developing usable XML skills and leadership, which is appropriate at larger-enterprise-scales.

Abuhoff stated, "There's stiff competition getting a paper accepted by XML Europe. That we got three accepted testifies strongly to the thought leadership and skills we bring to bear."

Kimber is Senior Consulting Engineer within ISOGEN Professional Services. He is a member of the SGML revision team, co-editor of the HyTime standard, and a participant in the development of W3C XML recommendations. Jockman is a Software Engineer, Reynolds is a Consultant, and Smith is the Manager of the Core Technologies Training Group, all at ISOGEN International.

About Innodata

Innodata (www.innodata.com) is the world's largest dedicated provider of digital asset services and solutions. Innodata delivers content manufacturing, content conversion, systems engineering, and library standards education to leading companies in fields as diverse as publishing, telecommunications, healthcare, and defense. Innodata's seven content manu-facturing centers based in Asia provide peerless outsourced support to companies worldwide, and its ISOGEN International division offers advanced systems engineering and education from four U.S.-based locations. 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.