POWER OF ATTORNEY



Know all by these presents that the undersigned hereby constitutes and

appoints each of Ashley A. Vukovits and Stephen R. Head signing

singly, the undersigned?s true and lawful attorney-in-fact to:



(1) execute for and on behalf of the undersigned, in the

undersigned?s capacity as an officer and/or director of Interactive

Intelligence, Inc. (the ?Company?), Forms 3, 4 and 5 in accordance

with Section 16(a) of the Securities Exchange Act of 1934 and the

rules thereunder;

(2) do and perform any and all acts for and on behalf of the

undersigned which may be necessary or desirable to complete and

execute any such Form 3, 4 or 5 and timely file such form with the

United States Securities and Exchange Commission and any stock

exchange or similar authority; and

(3) take any other action of any type whatsoever in connection

with the foregoing which, in the opinion of the attorney-in-fact,

may be of benefit to, in the best interest of, or legally required by, the

undersigned, it being understood that the documents executed by such

attorney-in-fact on behalf of the undersigned pursuant to this Power of

Attorney shall be in such form and shall contain such terms and

conditions as such attorney-in-fact may approve in such

attorney-in-fact?s discretion.



The undersigned hereby grants to each such attorney-in-fact full

power and authority to do and perform any and every act and thing

whatsoever requisite, necessary or proper to be done in the exercise

of any of the rights and powers herein granted, as fully to all intents

and purposes as the undersigned might or could do if personally present,

 with full power of substitution or revocation, hereby ratifying and

confirming all that such attorney-in-fact, or such attorney-in-fact?s

substitute or substitutes, shall lawfully do or cause to be done by virtue

of this power of attorney and the rights and powers herein granted. The

undersigned acknowledges that the foregoing attorneys-in-fact, in

serving in such capacity at the request of the undersigned, are not

assuming, nor is the Company assuming, any of the undersigned?s

responsibilities to comply with Section 16 of the Securities Act of 1934.



This Power of Attorney shall remain in full force and effect until the

undersigned is no longer required to file Forms 3, 4 or 5 with respect

to the undersigned?s holdings of and transaction in securities issued

by the Company, unless earlier revoked by the undersigned in a signed

writing delivered to the foregoing attorneys-in-fact.



IN WITNESS WHEREOF, the undersigned has caused this Power of

Attorney to be executed as of this 5th day of August, 2004.



Gary R. Blough   /s/ Gary R. Blough ____

Printed Name    Signature