ININ Interactive Intelligence Grp., Inc.

Interactive Intelligence Ranked Among Top 500 Global Software and Services Companies INDIANAPOLIS, Oct. 11 /PRNewswire-FirstCall/ -- Interactive Intelligence Inc. (NASDAQ:ININ), a global developer of business communications software, was named last month to Software Magazine's 2004 Top 500, a ranking of the world's largest software and services companies based on 2003 revenue. This is the fourth straight year Interactive Intelligence has been included in the Software 500. (Logo: http://www.newscom.com/cgi-bin/prnh/19990914/IILOGO ) Interactive Intelligence was ranked 246th among the top 500 companies with revenue of $51.5 million in 2003 -- a 7.8 percent increase in revenue, and an improvement in ranking from 253rd the previous year. In addition, Interactive Intelligence's investment in research and development -- at 26 percent of total revenue -- was higher than the Software 500's 21 percent average based on R&D spending for companies with revenue between $30 million and $100 million. "Our steady climb in revenue growth is largely attributable to a sustainable business plan that's emphasized both industry-leading technology advancements, and reliable and complete solutions our customers can count on," said president and chief executive officer for Interactive Intelligence, Dr. Donald E. Brown. "We're proud to have maintained a higher-than-industry- average R&D investment, and hope that this year's Software 500 further demonstrates to customers that we've invested where it counts to deliver the most functional, cost-effective, and highest quality product available." Interactive Intelligence develops business communications software that helps organizations reduce costs, increase productivity and enhance customer service by enabling them to more effectively manage multi-channel interactions, such as phone calls, faxes, e-mail, Web chats and Web callbacks. The company's software supports both traditional and VoIP networks. With its incorporation of the session initiation protocol standard and Intel's Host Media Processing software, Interactive Intelligence was one of the first vendors to offer a standards-based, all-software IP PBX. The Software 500 is a revenue-based ranking of the world's largest software and services suppliers targeting enterprise IT organizations. The list includes both private and public companies. The ranking is based on total worldwide software and service revenue for 2003. This includes revenues from software licenses, maintenance and support, training and software-related services and consulting. Suppliers are not ranked on their total corporate revenue, since many have other lines of business, such as hardware. The financial information was gathered by a survey prepared by King Content Co., as well as from public documents. The 2004 Software 500 22nd annual ranking of the world's largest software and service providers was published in the September issue of Software Magazine, and is posted at http://www.softwaremag.com/ . About Interactive Intelligence Interactive Intelligence Inc. (NASDAQ:ININ) is a global developer of business communications software for IP telephony, contact center automation, unified communications, and customer self-service. The company was founded in 1994 and has more than 1,000 customers worldwide. Recent company awards include Software Magazine's 2004 Top 500 Global Software and Services Companies, and Network World Magazine's 2003 Top 200. Interactive Intelligence employs approximately 350 people and is headquartered in Indianapolis. The company has 12 offices throughout North America, Europe and Asia. Interactive Intelligence can be reached at +1 317.872.3000 or ; on the Web: 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. Contact: Christine Holley Director, Market Communications Interactive Intelligence Inc. +1 317.715.8220 http://www.newscom.com/cgi-bin/prnh/19990914/IILOGO http://photoarchive.ap.org/ DATASOURCE: Interactive Intelligence Inc. CONTACT: Christine Holley, Director, Market Communications of Interactive Intelligence Inc., +1-317-715-8220, Web site: http://www.inin.com/ http://www.softwaremag.com/

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