Exhibit 99.1

For additional information contact:
Richard S. DeRose (703) 293-7901
For release: August 11, 2010 at 9:00 a.m.

Information Analysis Inc. Reports Stronger Sales and Profits for the Second Quarter

FAIRFAX, VIRGINIA – Information Analysis Inc. (OTCBB: IAIC) reported results for the second quarter ended June 30, 2010. Revenues were $1,688,000 compared to $1,404,000 reported in 2009’s second quarter. The Company reported net income of $78,000, or $0.01 per share, compared to net income of $6,000, or $0.00 per share in 2009’s second quarter. IAI had revenue of $3,703,000, compared to $2,799,000 reported for six months ending June 30, 2009. Net income for the first six months of fiscal 2010 was $182,000, or $0.02 per share, versus a net loss of $56,000, or ($0.01) per share, in the comparable 2009 period.

     The Company’s revenue and profits continue to show profitable improvement over last year’s results,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “We have been aggressively pursuing new business opportunities to increase our order backlog, which should improve revenue results, not only for this year but for future years.

      “We are actively pursuing the conversion and system modernization business as well as Adobe and Web applications.”

About Information Analysis Incorporated

     Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is a web solution provider and software conversion specialist, modernizing legacy systems and extending their reach to the Internet world.

Additional information for investors

     This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. These include the failure to obtain sufficient contracts, and to profitably complete those contracts. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year ended December 31, 2009 and in other filings with the Securities and Exchange Commission.

-- more --

Information Analysis Reports Second Quarter Results             
August 11, 2010                 
Page 2 of 4                 
 
 
Information Analysis Incorporated         
Condensed Income Statements         
 
    Three months ended June 30, 
(in thousands, except per share data; unaudited)        2010        2009 
Sales:                 
           Professional fees    $ 1,115    $ 1,198 
           Software sales        573        206 
           Total sales    1,688        1,404 
Cost of goods sold and services provided:                 
           Cost of professional fees        665        748 
           Cost of software sales        460        152 
           Total cost of sales    1,125        900 
Gross margin        563        504 
Operating expenses:                 
           Selling, general and administrative        487        500 
Operating income        76        4 
Other income (expense)        2        2 
Income before income taxes        78        6 
Provision for income taxes        --        -- 
Net income               $ 78             $ 6 
Comprehensive Income               $ 78             $ 6 
 
Net income per share:                 
           Basic and diluted        $ 0.01             $ 0.00 
 
Shares used in calculating earnings per share:                 
           Basic    11,196,760    11,196,760 
           Diluted    11,222,863    11,207,620 

-- more --

Information Analysis Reports Second Quarter Results             
August 11, 2010                 
Page 3 of 4                 
 
 
 
Information Analysis Incorporated         
Condensed Income Statements         
 
    Six months ended June 30, 
(in thousands, except per share data; unaudited)        2010        2009 
Sales:                 
           Professional fees           $ 2,628           $ 2,299 
           Software sales        1,075        500 
           Total sales        3,703        2,799 
Cost of goods sold and services provided:                 
           Cost of professional fees        1,456        1,544 
           Cost of software sales        882        351 
           Total cost of sales        2,338        1,895 
Gross margin        1,365        904 
Operating expenses:                 
           Selling, general and administrative        1,188        967 
Operating income        177        (63) 
Other income (expense)        5        7 
Income before income taxes        182        (56) 
Provision for income taxes        --        -- 
Net income           $ 182           ($ 56) 
Comprehensive Income           $ 182           ($ 56) 
 
Net income per share:                 
           Basic and diluted           $ 0.02           ($ 0.01) 
 
Shares used in calculating earnings per share:                 
           Basic    11,196,760    11,196,760 
           Diluted    11,215,187    11,196,760 

-- more --

Information Analysis Reports Second Quarter Results                 
August 11, 2010                 
Page 4 of 4                 
 
 
 
Information Analysis Incorporated         
Condensed Balance Sheets         
 
        As of        As of 
    June 30, 2010    December 31, 2009 
     (unaudited)               (audited) 
ASSETS                 
Current assets:                 
     Cash and cash equivalents           $ 1,932                 $ 1,479 
     Accounts receivable, net        850        940 
     Prepaid expenses        540        689 
             Total current assets        3,322        3,108 
 
Fixed assets, net        38        36 
Other assets        6        6 
             Total assets           $ 3,366                 $ 3,150 
 
 
LIABILITIES & STOCKHOLDERS' EQUITY                 
Current liabilities:                 
     Accounts payable           $ 63                 $ 89 
     Deferred revenues        680        779 
     Accrued payroll and related liabilities        246        255 
     Other accrued liabilities        467        307 
             Total liabilities        1,456        1,430 
 
Common stock, par value $0.01, 30,000,000 shares authorized;                 
     12,839,376 shares issued, 11,196,760 outstanding at                 
     June 30, 2010, and at December 31, 2009        128        128 
Additional paid in capital        14,562        14,554 
Accumulated deficit       (11,850)               (12,032) 
Accumulated other comprehensive loss        --        -- 
Less treasury stock; 1,642,616 shares at cost at                 
       June 30, 2010, and at December 31, 2009        (930)        (930) 
             Total stockholders' equity        1,910        1,720 
Total liabilities and stockholders' equity           $ 3,366                 $ 3,150