In2O3 films were deposited by RF magnetron sputtering on a glass substrate and then the effect of post depositionannealing in nitrogen atmosphere on the structural, optical and electrical properties of the films was investigated. Afterdeposition, the annealing process was conducted for 30 minutes at 200 and 400oC. XRD pattern analysis showed that the asdeposited films were amorphous. When the annealing temperature reached 200-400oC, the intensities of the In2O3 (222) majorpeak increased and the full width at half maximum (FWHM) of the In2O3 (222) peak decreased due to the crystallization. Thefilms annealed at 400oC showed a grain size of 28nm, which was larger than that of the as deposited amorphous films. Theoptical transmittance in the visible wavelength region also increased, while the electrical sheet resistance decreased. In this study,the films annealed at 400oC showed the highest optical transmittance of 76% and also showed the lowest sheet resistance of89Ω/□. The figure of merit reached a maximum of 7.2×10−4Ω−1 for the films annealed at 400oC. The effect of the annealingon the work-function of In2O3 films was considered. The work-function obtained from annealed films at 400oC was 7.0eV. Thus,the annealed In2O3 films are an alternative to ITO films for use as transparent anodes in OLEDs.