EXHIBIT 99.1
 
  For additional information contact:
Richard S. DeRose
(703) 293-7901
 
For release: March 29, 2012
 

Information Analysis Inc. Reports Profitable Results for 2011

FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for the year ended December 31, 2011. Revenues were $7,821,000, compared to revenues of $6,860,000 for the same period in 2010. The information technology services company reported net income of $154,000, or $0.01 per share basic and diluted, compared to net income of $146,000, or $0.01 per share basic and diluted, reported for the comparable 2010 period.
 
“The Company reported increased revenue for 2011 in comparison to 2010. We continue to add initiatives in new areas, such as cyber security, specialized staffing and more generalized user applications using Adobe products for our solutions sets in order to increase our business base,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “Our strong financial position will allow us to invest in new business areas for the future.”
 
“We continue to pursue merger and acquisition opportunities.”

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. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2011 and in other filings with the Securities and Exchange Commission.
 
 
 
 
 
Information Analysis Reports Profitable Results for 2011
March 29, 2012
Page 2 of 3
 
Information Analysis Incorporated
Statements of Operations
 
    Year ended December 31,  
(in thousands, except per share data; audited)   2011     2010  
             
Revenue:
            
Professional fees
   $ 4,701     $ 4,856  
Software sales
     3,120       2,004  
Total revenue
     7,821       6,860  
Cost of goods sold and services provided:
                
Cost of professional fees
     2,714       2,763  
Cost of software sales
     2,665       1,711  
Total cost of sales
     5,379       4,474  
Gross margin
     2,442       2,386  
Selling, general and administrative expense
     2,293       2,249  
Income from operations
     149       137  
Other income, net
     8       9  
Income before income taxes
     157       146  
Provision for income taxes
     3       --  
Net income
   $ 154     $ 146  
Earnings per common share:
                
Basic
   $ 0.01     $ 0.01  
Diluted
   $ 0.01     $ 0.01  
Shares used in calculating earnings per share:
                
Basic
     11,196,760       11,196,760  
Diluted
     11,224,410       11,211,024  
 
 
 
 
 
Information Analysis Reports Profitable Results for 2011
March 29, 2012
Page 3 of 3

Information Analysis Incorporated
Balance Sheets
 
    As of     As of  
    December 31,2011     December 31, 2010  
(in thousands)  
(audited)
     (audited)  
ASSETS
            
Current assets:
            
Cash and cash equivalents
   $ 1,281     $ 1,968  
Accounts receivable, net
     2,890       772  
Prepaid expenses
     787       571  
Note receivable
     7       6  
Total current assets
     4,965       3,317  
Fixed assets, net
     41       36  
Note receivable
     4       11  
Other assets
     6       6  
Total assets
   $ 5,016     $ 3,370  
LIABILITIES & STOCKHOLDERS' EQUITY
                
Current liabilities:
                
Accounts payable
   $ 998     $ 76  
Deferred revenues
     940       653  
Commissions payable
     679       447  
Accrued payroll and related liabilities
     248       245  
Other accrued liabilities
     107       69  
Taxes Payable
     3       -  
Total current liabilities
     2,975       1,490  
Common stock, par value $0.01, 30,000,000 shares authorized;
                
12,839,376 shares issued, 11,196,760 outstanding
     128       128  
Additional paid in capital
     14,574       14,568  
Accumulated deficit
     (11,732 )     (11,886 )
Less treasury stock; 1,642,616 shares at cost
     (930 )     (930 )
Total stockholders' equity
     2,040       1,880  
Total liabilities and stockholders' equity
   $ 5,015     $ 3,370