Exhibit 99.1


				For additional information contact:
				Richard S. DeRose (703) 293-7901
				For release:
				November 9, 2006

Information Analysis Inc. Reports Third Quarter Results

FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2006. Revenues were $2,574,000, compared to $2,629,000 reported in the third quarter 2005. The information technology services company reported net income of $157,000, or $0.01 per share basic and diluted, compared to net income of $251,000 or $0.02 per share basic and diluted, in the third quarter 2005.

For the nine months ended September 30, 2006, IAI’s revenues were $7,457,000, compared to revenues of $7,822,000 for the same period in 2005. The Company reported net income of $396,000, or $0.04 per share basic and $0.03 per share diluted, compared to net income of $471,000, or $0.05 per share basic and $0.04 per share diluted, reported for the comparable 2005 period.

“Our third quarter revenue was essentially the same as this year’s second quarter. Some of the business that we expected during this quarter came in late in the quarter and we expect to derive revenue from these contracts during the fourth quarter and into 2007,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “We still have a number of bid opportunities outstanding for new business and additional add-on business to existing contracts, which are expected to materialize during the fourth quarter. This should give the company impetus to increase revenue in 2007.

“Since we engaged an advisory firm in July, our M&A activities have increased significantly.”

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-KSB for the fiscal year ended December 31, 2005 and in other filings with the Securities and Exchange Commission.

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Information Analysis Reports Third Quarter Results

November 9, 2006

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Information Analysis Incorporated

Statements of Operations


	Three months ended September 30,
*(in thousands, except per share data; unaudited)*	2006		2005
Revenue:
Professional fees	$	2,180	$	2,371
Software sales		394		258

Total revenue		2,574		2,629
Cost of goods sold and services provided:
Cost of professional fees		1,626		1,753
Cost of software sales		183		208

Total cost of sales		1,809		1,961

Gross margin		765		668
Selling, general and administrative expense		610		413

Operating income		155		255
Other income (expense)		2		(4	)

Income before income taxes		157		251
Provision for income taxes		—		—

Net income	$	157	$	251

Earnings per share:
Basic	$	0.01	$	0.02
Diluted	$	0.01	$	0.02
Shares used in calculating earnings per share:
Basic		11,137,371		10,301,494
Diluted		11,478,082		10,655,071

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Information Analysis Reports Third Quarter Results

November 9, 2006

Page 3 of 4

Information Analysis Incorporated

Statements of Operations


	Nine months ended September 30,
*(in thousands, except per share data; unaudited)*	2006		2005
Revenue:
Professional fees	$	6,675	$	6,858
Software sales		782		964

Total revenue		7,457		7,822
Cost of goods sold and services provided:
Cost of professional fees		5,080		5,272
Cost of software sales		478		813

Total cost of sales		5,558		6,085

Gross margin		1,899		1,737
Selling, general and administrative expense		1,508		1,253

Operating income		391		484
Other income (expense)		5		(13	)

Income before income taxes		396		471
Provision for income taxes		—		—

Net income	$	396	$	471

Earnings per share:
Basic	$	0.04	$	0.05
Diluted	$	0.03	$	0.04
Shares used in calculating earnings per share:
Basic		10,973,470		10,293,910
Diluted		11,436,461		10,687,084

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Information Analysis Reports Third Quarter Results

November 9, 2006

Page 4 of 4

Information Analysis Incorporated

Balance Sheets


	As of September 30, 2006			As of December 31, 2005
*(in thousands)*	*(unaudited)*			*(audited)*
ASSETS
Current assets:
Cash and cash equivalents	$	477		$	452
Accounts receivable, net		2,096			1,994
Prepaid expenses		422			183
Notes receivable		113			85
Other assets		12			—
Other receivables		6			15

Total current assets		3,126			2,729
Fixed assets, net		56			57
Other assets		2			9

Total assets	$	3,184		$	2,795

LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	944		$	1,175
Deferred revenue		371			214
Accrued payroll and related payroll items		249			321
Other accrued liabilities		72			125
Income taxes payable		—			4

Total current liabilities		1,636			1,839

Total liabilities		1,636			1,839

Common stock, par value $0.01, 30,000,000 shares authorized; 12,779,987 shares issued, 11,137,371 outstanding at September 30, 2006, and 12,127,626 shares issued, 10,623,015 outstanding at December 31, 2005		128			121
Additional paid in capital		14,478			14,212
Accumulated deficit		(12,115	)		(12,511	)
Accumulated other comprehensive income		(12	)		(12	)
Less treasury stock; 1,642,616 shares at cost at September 30, 2006, and 1,504,611 shares at cost at December 31, 2005		(931	)		(854	)

Total stockholders’ equity		1,548			956

Total liabilities and stockholders’ equity	$	3,184		$	2,795

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