INTRAWARE COMPLETES SALE OF SOFTWARE RESALE BUSINESS AND BEGINS PROVIDING SUBSCRIBENET SERVICE TO FUSIONSTORM

ORINDA, Calif. - January 3, 2006 - Intraware, Inc. [NASDAQ: ITRA], the leading provider of electronic software and license delivery and management solutions, announced today that it has completed the sale of its Sun software resale business to FusionStorm, a leading national provider of IT products, managed and professional services. Intraware has also begun providing its SubscribeNet service to FusionStorm for electronic delivery and management of enterprise software resold by FusionStorm.

"The transaction will enable Intraware to focus more sharply on its core digital delivery business, including its SubscribeNet electronic software and license delivery and management service, and provides FusionStorm with a proven enterprise software sales capability to complement its established hardware integration and enterprise software services business," said Peter Jackson, Chairman, Chief Executive Officer and President of Intraware. "Intraware's former Sun software customers now have access to FusionStorm's broad offering of hardware and enterprise software services, in addition to the Sun software and maintenance previously provided by Intraware. In addition, those customers will continue to have electronic access to their Sun software through Intraware SubscribeNet service."

The initial consideration paid by FusionStorm on closing of the sale was reduced from $400,000 to $250,000 to account for unanticipated costs that FusionStorm incurred as part of the transition. FusionStorm will still be required to pay an additional $200,000 for the purchased business in approximately one year if certain sales-related targets are achieved.

As previously announced, Intraware has terminated its alliance agreement with Software Spectrum, under which Intraware helped Software Spectrum resell Sun software and provided its SubscribeNet service to Software Spectrum for delivery of that software. As a result of this contract termination, Intraware has ceased recognizing Alliance and reimbursement revenues. However, Intraware expects to continue to recognize Online services and technology revenue in connection with electronic delivery of Sun software, under Intraware's new SubscribeNet agreement with FusionStorm.

About Intraware

Intraware, Inc. provides digital services that enable enterprise technology publishers to tie together licensing and software processes into a clean, simple customer experience. The Intraware SubscribeNet® service (patent pending) is a Web-based delivery and support solution that enables technology companies to deliver, track and manage the software, licenses and other digital content they distribute to their global customer bases. Intraware's digital delivery and management solutions power business-to-business technology providers including Progress Software Inc, Xilinx Inc., EMC Corporation, Sybase Inc., RSA Security Inc. and McKesson. Intraware is headquartered in Orinda, California and can be reached at 888.797.9773 or www.intraware.com.

About FusionStorm

FusionStorm -- "Making Technology Work" -- is a leading, national provider of IT products, professional services, support contract services and 24x7 managed services for enterprises of all sizes. The company delivers complete solutions for system infrastructure, storage, networking, voice-over-IP, security, database, disaster recovery, managed hosting and remote managed services. FusionStorm offices include San Francisco (HQ), San Jose, Sacramento, Los Angeles, Las Vegas, Cincinnati and Boston. The company's web site is www.fusionstorm.com and the toll-free phone is 800.228.TECH (8324).

© 2006 Intraware, Inc. Intraware is a registered trademark of Intraware, Inc. FusionStorm is a trademark of FusionStorm. Any other company or product names mentioned herein are the trademarks of their respective owners.

For more information contact:

Roman Reznicek
Intraware, Inc
925.253.4545
ir@intraware.com