Frequently Asked Questions Interactive Intelligence Acquires Bay Bridge Decision Technologies Inc. August 2012

Q: What are the disclosed details of the acquisition?

Interactive Intelligence Group Inc. has made a 100 percent cash purchase of Bay Bridge Decision Technologies Inc., a privately-held Maryland-based company. Under the terms of the agreement, effective Aug. 1, 2012, Bay Bridge is now owned by Interactive Intelligence Group Inc. Bay Bridge will continue to sell and support its contact center forecasting, capacity planning and strategic analysis solutions, while separately applying its patented forecasting technology and operations research expertise to advance the functionality of Interactive Intelligence’s workforce management (WFM) application, Interaction Optimizer^®. Interactive Intelligence will provide additional information in its third-quarter Form 10-Q, which it expects to file with the Securities and Exchange Commission (SEC) in November 2012.

Q: What is the background of Bay Bridge? Bay Bridge was founded in 2000 as a privately-held company. Bay Bridge is the leading U.S. supplier of long-term forecasting and planning solutions backed by the world’s top brand-name customers. Bay Bridge’s CenterBridge^® suite of software applications has evolved to support the executive analytics and strategic performance management needs of companies with complex customer contact centers, branch locations, and processing organizations. Benefits of the CenterBridge^® software suite include more efficient staffing strategies, improved capital investment allocation, comprehensive performance planning, and improved risk management.

Q: Why did Interactive Intelligence make the acquisition? This acquisition addresses Interactive Intelligence’s strategy of broadening its workforce optimization (WFO) portfolio of applications. Specifically, it adds advanced, long-term contact center capacity planning and strategic analytics capabilities that supplement Interaction Optimizer^®’s workforce management functionality, thus meeting the needs of the largest, most complex contact centers in the world. With this acquisition, Interactive Intelligence now has the leading North American solution for long-term contact center forecasting, capacity planning and strategic analysis. As noted above, the acquired development talent and some of the acquired intellectual property will also help Interactive Intelligence advance its forecasting and scheduling capabilities within its Interaction Optimizer^® product.

Q: How will customers benefit from the acquisition? Bay Bridge customers will continue to receive uninterrupted service from their Bay Bridge support staff, which over time will be incorporated into Interactive Intelligence’s support organization. In addition to the Bay Bridge products, customers will now get access to Interactive Intelligence’s complete line of all-in-one IP communications software and services, including its workforce management capabilities for mid-size contact centers. Interactive Intelligence customers will be introduced to the Bay Bridge products, which can integrate to Interaction Optimizer^®, or any third-party WFM solution already in use.

The net result for all customers is more streamlined technology sourcing and implementation, along with increased return-on-investment.

Q: Are there planned changes for the physical facilities and locations? No. Interactive Intelligence will maintain the current Bay Bridge office in Annapolis, Maryland.

Q: What is the timeline to have all of Bay Bridge’s functions, including sales, support, marketing and finance completely incorporated into the Interactive Intelligence organization? Six months to completion.

For more information, please contact:

-          Financial/Investor Relations Inquiries: Steve Head, CFO, Interactive Intelligence, (317) 715-8412, steve.head@inin.com

-          Media Inquiries: Christine Holley, Senior Director of Market Communications, (317) 715-8220, christine.holley@inin.com

-          Industry Analyst Inquiries: Meredith Egg, Industry Analyst Relations Manager, (317) 715-8225, meredith.egg@inin.com

Interactive Intelligence Acquires Bay Bridge Decision Technologies

Acquisition to add long-term forecasting, planning and analysis capabilities to Interactive Intelligence workforce optimization offering

INDIANAPOLIS and ANNAPOLIS, Md., Aug. 9, 2012 — Interactive Intelligence Group Inc. (Nasdaq: ININ), a global provider of unified IP business communications solutions, has signed a purchase agreement to acquire Bay Bridge Decision Technologies.

Bay Bridge, the leading U.S. supplier of contact center forecasting, capacity planning and strategic analysis technology, was purchased in an all-cash transaction effective Aug. 1, 2012.

Bay Bridge is a privately-held company founded in 2000. Its long-term forecasting and planning technology helps contact centers optimize delivery strategies, agent resources, and performance by getting the right number of agents, in the right place, at the right time, to deliver better service.

“This acquisition enables us to bridge the gap between our basic workforce management features, and the advanced forecasting and planning capabilities in the Bay Bridge products, so we can now offer a true strategic planning solution for mid-size and large contact centers,” said Interactive Intelligence founder and CEO, Dr. Donald E. Brown. “As the leading vendor in its industry, supplying the kind of advanced functionality required by the world’s top brands, Bay Bridge makes for an ideal acquisition that will help our customers further streamline their technology sourcing and implementations, while giving them even greater return-on-investment.”

Under the terms of the agreement, Bay Bridge will continue to sell and support its CenterBridge^® family of long-term forecasting, analysis and planning products, while separately applying its patented forecasting technology and operations research expertise to advance the functionality of the Interactive Intelligence workforce management product, Interaction Optimizer^®.

Interactive Intelligence customers will be able to purchase the Bay Bridge products and integrate them to Interaction Optimizer^®, or any third-party WFM solution already in use.

Customers using Bay Bridge products will continue to be serviced by their existing support staff, which, over time, will be incorporated into the Interactive Intelligence support organization.

Interactive Intelligence will maintain the Bay Bridge office in Annapolis, Maryland.

For more information about Bay Bridge and the acquisition, visit http://www.inin.com/Pages/BBDT.aspx.

Interactive Intelligence will provide more detailed information in its third-quarter Form 10-Q, which it expects to file with the Securities and Exchange Commission in November 2012.

About Interactive Intelligence

Interactive Intelligence Group Inc. (Nasdaq: ININ) is a global provider of contact center automation, unified communications, and business process automation software and services. The company’s unified IP business communications solutions, which can be deployed on-premise or via the cloud, are ideal for industries such as financial services, insurance, outsourcers, collections, and utilities. Interactive Intelligence was founded in 1994 and has more than 4,500 customers worldwide. The company is among Forbes Magazine’s 2011 Best Small Companies in America and Software Magazine’s 2011 Top 500 Global Software and Service Providers. It employs more than 1,000 people and is headquartered in Indianapolis, Indiana. The company has offices throughout North America, Latin America, Europe, Middle East, Africa and Asia Pacific. Interactive Intelligence can be reached at +1 317.872.3000 or info@inin.com; on the Net: www.inin.com.

This release may contain 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 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.

ININ-G

Contact:

Christine Holley

Senior Director of Market Communications

Interactive Intelligence

+1 317.715.8220

christine.holley@inin.com

May 20-24, 2012 | Boston, MA

This premier educational event provides comprehensive learning opportunities exclusively for Avaya customers. Register by March 31 to receive early bird savings and save more than $200 off the cost of regular registration.

Ric Kosiba, President, Bay Bridge Decision Technologies will be presenting on:  Contact Center Capacity Planning

Schedule

The Call Center Optimization Forum‘s are designed for executives and managers, and IT decision-makers of businesses who need to stay informed about the latest industry trends, best practices, and rapidly evolving contact center optimization technology.

Register with the promo code BAYBRIDGE by April 30th, 2012 to save $80 off of the $179 registration and reserve your seat today for only $99!

November 1st – Philadelphia, Pennsylvania

The Call Center Optimization Forum‘s are designed for executives and managers, and IT decision-makers of businesses who need to stay informed about the latest industry trends, best practices, and rapidly evolving contact center optimization technology.

Register with the promo code BAYBRIDGE by April 30th, 2012 to save $80 off of the $179 registration and reserve your seat today for only $99!

August 9th – Walnut Creek , California

The Call Center Optimization Forum‘s are designed for executives and managers, and IT decision-makers of businesses who need to stay informed about the latest industry trends, best practices, and rapidly evolving contact center optimization technology.

Register with the promo code BAYBRIDGE by April 30th, 2012 to save $80 off of the $179 registration and reserve your seat today for only $99!

June 28th – Dublin, Ohio

The Society of Workforce Planning Professionals is hosting their annual SWPP Annual Conference: The Summit for Workforce Management Excellence on March 7-9th in Nashville, TN and we are once again proud to sponsor the event.

As a result of our sponsorship, Ric Kosiba, President of Bay Bridge Decision Technologies will be speaking on:

Contact Center Capacity Planning, Step by Step (or Ways to Improve Your Scary Spreadsheet Plans)

Over the last year or so, there has been a fair amount of press about the shortfalls of the traditional long term planning process, and the need for more dynamic corporate planning.  These numerous articles reflect the reality that when the business environment changes, the resource plan must change too.

In the contact center operation, forecast change is particularly difficult to manage. When contact volumes are at variance to plan, when do we trigger a new forecast and a new resource plan? How do we determine, accurately, the service we can expect as volumes change and our budgets remain fixed? How do we quickly produce accurate and optimal capacity planning scenarios?

In this session, we will discuss the steps taken by the best planning analysts, from forecasting, to accurate requirements generation, to optimally generating hiring/overtime/undertime/controllable shrinkage plans for your multi-channel, multi-skill contact center network.

In addition to our presentation we highly recommend attending Andrea DelValle’s session – “Contact Center Magic at Disney”, Steve Gordon’s – “Social Media’s Impact on Call Volume”, and Michelle Borboa – “Outsourcing Options”.

Andrea DelValle, Disney Destinations, is a new member of SWPP as of 2012, and her session “Contact Center Magic at Disney” focuses on how Walt Disney World is always working to create a magical experience.  Attend Andrea’s speech and see how Disney has integrated their planning processes to enhance the magic at the call center.

Conference Agenda

We are looking forward to seeing new and familiar faces at this year’s SWPP Conference.

For many organizations, this is most certainly true: a contact center network’s overall efficiency is determined many months before the contact centers operated.

The contact forecast, the resulting staff plan and budget, and the assumed efficiency of the operation sets in (only somewhat pliable) stone the level of chaos of the real time operation.  The “day-of” real time team operates within the constraints of the long term strategy and plan.

We are seeing many organizations reflect this new reality.  For example, organizations are now combining their long term team with their real-time team into one planning team, reflecting the truth that a long term plan sets the operating conditions for the short term team.  They should work closely together.

The determining factor of efficiency is most often the assumptions of the contact center strategic plan.  Through non-automated methods, planners determine the use of their agent resources: their training plan, their hiring plan, their overtime/undertime plan, their cross utilization, and more.  But most planners produce these plans by hand.

It is not easy to do this.

In this session, we will discuss common ways that plans become inefficient and the operational repercussions of these inefficiencies.

Thursday, June 21st at 1pm EST
Registration

When you ask a contact center executive their most important metrics, you will invariably get some flavor of one of three metrics:  “customer satisfaction”, “cost per call”, or “occupancy”.  But whatever metric you choose, a focus on these metrics produces off an awful lot of project work.

Have you ever noticed that the efficiencies associated with management improvement projects have not come through?  Have you ever noticed our operation didn’t bend enough for our finance-driven stretch goals to become a reality? Have you noticed that our call center metrics may not work so well for casework centers?  Have you ever noticed that improvements in service level don’t translate into improvements in customer satisfaction?

In this session, we will focus on metrics used to measure the service and efficiency of our workforce management process, our agents, and our operation.  Once again, with a focus on contact center planning, we will discuss other common contact center metrics and legacy practices that may be a tradition, but also may not be optimal.

Thursday, May 17th at 1pm EST
Registration

It’s a contact center cliché:  The only constant is change.  Whether the unexpected is a rebound of the economy, or a weather event, or some new edict from the government, we must somehow tame the effects of the heavens and Washington and the invisible hand of the economy.

It is not easy, and if we knew how to forecast any of these events early enough to be able to plan specifically for them, we would certainly be in another line of work.

But even if we don’t know exactly when these events will happen, we certainly know that they will happen.  It doesn’t mean we cannot prepare for these events.

In this session, we will discuss mathematical methods for planning in the face of change and how to prepare your contact center for the unexpected.

Thursday, April 12th at 1pm EST
Registration