SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person* Blough Gary R (Last) (First) (Middle) 7601 INTERACTIVE WAY (Street) INDIANAPOLIS IN 46278 (City) (State) (Zip)	2. Date of Event Requiring Statement (Month/Day/Year) 07/01/2004	3. Issuer Name and Ticker or Trading Symbol INTERACTIVE INTELLIGENCE INC [ ININ ]
		4. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director 10% Owner X Officer (give title below) Other (specify below) Executive VP of Worldwide Sale	5. If Amendment, Date of Original Filed (Month/Day/Year)
			6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	31,000	D

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	(1)	04/18/2007	Common Stock	45,000	$0.8666	D
Stock Option (right to buy)	(2)	11/28/2007	Common Stock	7,500	$0.8666	D
Stock Option (right to buy)	(3)	08/31/2008	Common Stock	7,500	$3	D
Stock Option (right to buy)	(4)	12/26/2011	Common Stock	3	$5.99	D
Stock Option (right to buy)	(5)	12/26/2011	Common Stock	24,997	$5.99	D
Stock Option (right to buy)	(6)	06/10/2012	Common Stock	4,000	$3.09	D
Stock Option (right to buy)	(7)	04/03/2013	Common Stock	2,501	$3.15	D
Stock Option (right to buy)	(8)	04/03/2013	Common Stock	2,499	$3.15	D

Explanation of Responses:

1. Option became exercisable 33 1/3% on 2/17/2000, 33 1/3% on 2/17/2001 and 33 1/3% on 2/17/2002.

2. Option became exercisable 20% on 11/28/1998, 20% on 11/28/1999, 20% on 11/28/2000, 20% on 11/28/2001 and 20% on 11/28/2002.

3. Option became exercisable 20% on 8/31/1999, 20% on 8/31/2000, 20% on 8/31/2001, 20% on 8/31/2002 and 20% on 8/31/2003.

4. Option became exercisable 33 1/3% on 12/26/2002 and 66 2/3% on 12/26/2003.

5. Option becomes exercisable 25% on 12/26/2002, 25% on 12/26/2003, 25% on 12/26/2004 and 25% on 12/26/2005.

6. Option became exercisable in nine equal monthly installments beginning April 1, 2003.

7. Option becomes exercisable 50% on 4/3/2006 and 50% on 4/3/2007.

8. Option becomes exercisable 50% on 4/3/2004 and 50% on 4/3/2005

Remarks:

	Ashley Vukovits Attorney-in-fact	08/18/2004
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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