Incentra Solutions Receives $1.4 Million From Additional Closings in Convertible Note Financing; Total Proceeds to Date Equal $2.4 Million

July 5, 2006

Boulder, CO, July 5, 2006  Incentra Solutions, Inc. (OTCBB: ICNS), a provider of complete IT and storage management solutions to enterprises, managed service providers and broadcasters worldwide, today announced that is has received $1.4 million from three institutional investors in additional closings in the short-term convertible note financing announced in late May of this year.  In connection with the financing the Company also issued warrants to the institutional investors to purchase 320,000 shares of common stock at $1.40 per share.

The initial closing of $1.0 million was led by one of Incentra's directors, members of senior management and other insiders.   The amount raised in the financing to date, including an additional investment by a Company insider, totals $2.4 million, all of which will be used to fund the Company's operations. 

Chairman and CEO Thomas P. Sweeney said that the institutional investors participating in the latest closings include two funds of London-based RAB Capital, a current shareholder who had previously purchased the Company's common stock in open market transactions, and Blueline Partners LLC located in Danville, CA.

"The acquisition strategy we implemented last year has driven a year-over-year doubling of revenues with solid increases in sales of higher-end storage solutions, professional services, and recurring revenue services," Sweeney said.   "We believe the investments made by these institutional investors in this financing and in the open market and the investment by another Company insider clearly demonstrate the confidence they all have in the Company's opportunities for growth and value appreciation going forward." 

In connection with the additional closings, certain terms of the offering were changed from the initial closing under the offering and the forms of convertible note, warrant and registration rights agreement executed in connection with the additional closings were modified from the forms executed in connection with the initial closing.   Complete details of the financing can be found in a Form 8-K filed with the Securities and Exchange Commission on June 30.

About Incentra Solutions, Inc.
Incentra Solutions, Inc. (www.incentrasolutions.com, OTCBB:ICNS) is a provider of complete IT & storage management solutions to enterprises, managed service providers and broadcasters worldwide.  Incentra's complete solution includes professional services, hardware & software products with first call support, IT outsourcing solutions and financing options.  To the broadcast market, Incentra delivers complete digital archive management and transcoding solutions built on its IT and storage expertise and offerings.

Incentra Solutions Forward Looking Statements
Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws.  Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved.  Readers are cautioned not to place undue reliance on these forward-looking statements.  Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business.  For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K.  The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Contacts:
Allen & Caron, Inc.
Jill Bertotti (investors)
jill@allencaron.com

Len Hall (financial media)
len@allencaron.com
949-474-4300

Incentra Solutions, Inc.
Paul McKnight, Chief Financial Officer
pmcknight@incentrasolutions.com
303-449-8279