CAPITAL Card Services Selects Interactive Intelligence as Its Provider of IP-based Business Communications Solutions.

INDIANAPOLIS & SIOUX FALLS, S.D. -- CAPITAL Card Services Inc., a servicer of more than 500,000 MasterCard([R]) and Visa([R]) accounts for institutions nationwide, has selected IP-based business communications software from Interactive Intelligence Inc. (Nasdaq:ININ).

The deployment, which is expected to be complete by March 2008, will replace CAPITAL's existing PBX and dialing systems enterprise-wide. The company selected the Interactive Intelligence software to consolidate disparate communications applications onto a single platform, according to CAPITAL's CEO and president, Jeff Aegerter.

"When we began looking for a new system we had already decided to migrate to a voice over IP network to help us increase operational efficiencies, such as more quickly rolling out distributed sites," Aegerter said. "The problem was that we were still faced with purchasing separate applications running on separate servers, even with vendors that claimed a 'single' solution. We ultimately went with Interactive Intelligence because it offered a converged, single-platform applications architecture, which meant no finger-pointing when trying to resolve issues, and most importantly, a simpler and more cost-effective way to deliver and manage multi-channel customer contact services."

As important as this innovative architecture was, CAPITAL also wanted a vendor with staying power. "After rigorous customer reference checks and a thorough analysis of viability, we found that Interactive Intelligence had a proven track record," Aegerter said. "As a business that is more concerned with being stable than 'leading-edge,' this factor was equally key in our purchase decision."

CAPITAL plans to use the Interactive Intelligence software, called Customer Interaction Center([R]) (CIC), to support both its business users and contact center agents located at its headquarters in Sioux Falls and a remote office in nearby Brookings, South Dakota.

In addition to using the software for session initiation protocol-based IP switching, interactive voice response, and automatic call distribution, CAPITAL plans to deploy modules for outbound dialing, call and screen recording, network-based pre- and post-call routing, and workforce management.

"The great thing about the Interactive Intelligence software is that we can deploy a host of business user and agent features without the cost and complexity of integration, additional vendor sourcing, or multiple points of administration, customization and reporting," Aegerter said. "We expect this to translate into reduced costs and simplified IT management, as well as increased productivity and enhanced customer service."

Ultimately, Aegerter sees these benefits passed on to its card-holder customers and large issuing bank clients. "By deploying communications technology that is both innovative and proven, we expect our customers and clients to benefit from improved service, reduced costs, and long-term investment protection," he said.

CAPITAL plans to open an additional office later next year that will also be supported by the Interactive Intelligence software.

About CAPITAL Card Services

CAPITAL Card Services Inc. is a leading servicer of MasterCard and Visa accounts for financial and non-financial institutions nationwide. The company services more than 500,000 accounts and manages more than $145 million in outstanding card receivables for its clients. CAPITAL provides turnkey account acquisition services, underwriting strategies, marketing, customer service, collections, and portfolio management services. It was established in 1998 and is headquartered in Sioux Falls, South Dakota. For more information about CAPITAL, call +1 605.782.3300 or visit http://www.capitalcardservices.com.

About Interactive Intelligence

Interactive Intelligence Inc. (Nasdaq: ININ) is a global provider of business communications solutions for contact center automation, enterprise IP telephony, and enterprise messaging. 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 more than 550 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 [e-mail]; 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.