Exhibit 99.1

For additional information contact:
Richard S. DeRose
(703) 293-7901

For release:  November 12, 2014
 
Information Analysis Inc. Reports New Contracts in the Third Quarter

FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2014.  Revenues were $1,357,000 compared to $3,218,000 reported in the third quarter 2013.  The information technology services company reported net income of $28,000, or $0.00 per share basic and diluted, compared to net income of $108,000 or $0.01 per share basic and diluted, in the third quarter 2013.
 
For the nine months ended September 30, 2014, IAI’s revenues were $3,561,000 compared to revenues of $5,653,000 for the same period in 2013.  The Company reported a net loss of $231,000 or ($0.02) per share basic and diluted, compared to a net loss of $80,000, or $ (0.01) per share basic and diluted, reported for the comparable 2013 period.
 
“The company has been aggressively pursuing new business opportunities through the bidding process for prime contracts and teaming with our partners.  During the third quarter of this year the company was profitable, and in addition, was awarded a number of larger contracts.  If the government elects to exercise all option periods in these contracts, the total value could reach in excess of $16 million in new business.  These contracts are expected to improve our profitability going forward in the fourth quarter and over the next year,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI.
 
“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, 2013 and in other filings with the Securities and Exchange Commission.
 
 
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Information Analysis Incorporated
Statements of Operations
 
    Three months ended September 30,  
(in thousands, except per share data; unaudited)   2014     2013  
Revenue:
           
Professional fees   $ 944     $ 1,017  
Software sales      413       2,201  
Total revenue     1,357       3,218  
Cost of goods sold and services provided:
               
Cost of professional fees     521       510  
Cost of software sales        232       1,952  
Total cost of sales      753       2,462  
Gross margin      604       756  
Selling, general and administrative expense       578       650  
Income from operations         26       106  
Other income, net           2       2  
Income before income taxes        28       108  
Provision for income taxes      --       --  
Net income      28       108  
                 
Earnings per common share:                
Basic    $ 0.00     $ 0.01  
Diluted    $ 0.00     $ 0.01  
                 
Shares used in calculating earnings per share:                
Basic     11,201,760       11,201,760  
Diluted       11,347,107       11,211,501  
 
 
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Information Analysis Incorporated
Statements of Operations
 
   
Nine months ended September 30,
 
(in thousands, except per share data; unaudited)   2014     2013  
Revenue:
           
Professional fees   $ 2,608     $ 3,097  
Software sales      953       2,556  
Total revenue     3,561       5,653  
Cost of goods sold and services provided:
               
Cost of professional fees     1,498       1,724  
Cost of software sales        687       2,257  
Total cost of sales      2,185       3,981  
Gross margin      1,376       1,672  
Selling, general and administrative expense       1,615       1,758  
Income from operations         (239 )     (86 )
Other income, net           8       6  
Income before income taxes        (231 )     (80 )
Provision for income taxes      --       --  
Net income      (231 )     (80 )
                 
Earnings per common share:                
Basic    $ (0.02 )   $ (0.01 )
Diluted    $ (0.02 )   $ (0.01 )
                 
Shares used in calculating earnings per share:                
Basic     11,201,760       11,201,760  
Diluted       11,201,760       11,201,760  
 
 
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Information Analysis Incorporated
Balance Sheets
 
   
As of
   
As of
 
   
September 30, 2014
   
December 31, 2013
 
(in thousands)
 
(unaudited)
   
(audited)
 
ASSETS
           
Current assets:
           
     Cash and cash equivalents
  $ 2,067     $ 2,360  
     Accounts receivable, net
    862       1,438  
     Prepaid expenses
    285       535  
     Note receivable
    4       6  
          Total current assets
    3,218       4,339  
                 
Fixed assets, net
    50       53  
Note receivable
    6       8  
Other assets
    6       6  
          Total assets
  $ 3,280     $ 4,406  
                 
                 
LIABILITIES & STOCKHOLDERS' EQUITY
               
Current liabilities:
               
     Accounts payable
  $ 93     $ 612  
     Deferred revenues
    260       503  
     Commissions payable
    770       903  
     Accrued payroll and related liabilities
    220       221  
     Other accrued liabilities
    50       61  
         Total current liabilities
    1,393       2,300  
                 
Common stock, par value $0.01, 30,000,000 shares authorized;
               
     12,844,376 shares issued, 11,196,760 outstanding as of
               
     September 30, 2014 and December 31, 2013
    128       128  
Additional paid in capital
    14,612       14,600  
Accumulated deficit
    (11,923 )     (11,692 )
Less treasury stock; 1,642,616 shares at cost
    (930 )     (930 )
         Total stockholders' equity
    1,887       2,106  
         Total liabilities and stockholders' equity
  $ 3,280     $ 4,406  
 
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