Interactive Intelligence, Inc.
May 8, 2007

Interactive Intelligence Offers Software as a Service for the Contact Center and Enterprise

INDIANAPOLIS (May 8, 2007)

Interactive Intelligence Inc. (Nasdaq: ININ), a global developer of business communications software, has announced availability of its "software as a service" (SaaS) for the contact center and enterprise.

Its SaaS is based on the company's all-in-one unified communications software suite, which was first launched as a premise-based offering in 1997 to eliminate the cost and complexity introduced by individual point products.

The Interactive Intelligence contact center SaaS includes a variety of applications, such as interactive voice response, automatic call distribution, outbound and predictive dialing, quality monitoring and multimedia recording, disaster recovery, workforce management, knowledge and e-mail response management, and Web self-service.

The company's SaaS for the enterprise currently includes "on-demand" automated outbound telephone notification services called icNotify™. The company plans to expand these services over the next nine months to include multi-party audio conferencing, disaster recovery, auto-attendant, unified messaging, and real-time communications such as find-me/follow-me services.

Interactive Intelligence is offering its SaaS to fill the gap left by carriers, applications service providers, and start-up vendors that have little or no expertise developing sophisticated contact center and enterprise telephony applications, according to Joseph A. Staples, senior vice president of worldwide marketing.

"Our SaaS offering enables us to meet customer demand by delivering our innovative, yet proven contact center and enterprise applications in a streamlined, and often times more cost-effective manner," Staples said. "With more than a decade of experience developing these applications, and with the advantage of delivering them based on our single-vendor, single-platform architecture, we give customers faster set-up and response time, virtually unlimited customization options, and more robust and reliable service overall."

The Interactive Intelligence SaaS supports SIP-based voice over IP, traditional TDM, and hybrid switching. Based on a segregated server model, Interactive Intelligence also gives customers a simple migration path should they choose to move the SaaS functionality on premise.

The company uses dedicated servers for each customer deployment, which are co-located at a Homeland Security-designated and SAS-70-certified data center to ensure services are delivered securely and reliably.

The Interactive Intelligence SaaS for the contact center is targeted primarily at outsourced and teleservices firms, small and mid-size businesses, and large organizations with departmentally-focused initiatives.

The Interactive Intelligence SaaS for the enterprise is targeted at a wide variety of member, constituent, and service-based organizations, including property management associations, healthcare organizations, financial institutions, and higher education institutions.

The Interactive Intelligence SaaS is available immediately throughout North America, and is offered through the company's channel of more than 250 value-added resellers.

More information about the company's SaaS can be found at http://www.inin.com/Services/HostedServices/HostedServices.asp.

About Interactive Intelligence

Interactive Intelligence Inc. (Nasdaq: ININ) is a global provider of business communications software and services for contact center automation and enterprise IP telephony. The company was founded in 1994 and has more than 2,500 customers worldwide. Recent awards include the 2006 Network World 200, CRM Magazine's 2006 Rising Star Excellence Award, Network Computing Magazine's 2006 Well-Connected Award, and Software Magazine's 2006 Top 500 Global Software and Services Companies. Interactive Intelligence employs approximately 525 people and is headquartered in Indianapolis, Indiana. The company has five global corporate offices, with additional sales offices throughout North America, Europe and Asia Pacific. Interactive Intelligence can be reached at +1 317.872.3000 or info@inin.com; on the Net: http://www.inin.com.

This release contains certain forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially are described in the company's SEC filings.

Interactive Intelligence Inc. is the owner of the marks INTERACTIVE INTELLIGENCE, its associated LOGO and numerous other marks. All other trademarks mentioned in this document are the property of their respective owners.

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