Incentra Solutions Announces 2006 Third Quarter, Nine-Month Revenues from Continuing Operations Up More than 50 Percent Year Over Year

Full Year 2006 Revenues from Continuing Operations Expected to be Between $65 Million and $68 Million

October 16, 2006

Boulder, CO, October 16, 2006 – Incentra Solutions, Inc. (OTCBB: ICNS), a provider of complete IT and storage management solutions to enterprises and managed service providers in North America and Europe, today announced that it expects total revenues from continuing operations for its third quarter and first nine months ended September 30, 2006 to be up more than 50 percent year over year. 

For the 2006 third quarter, total revenues from continuing operations are expected to be between $16.0 million and $16.2 million, up from $10.3 million in last year’s third quarter.  Total revenues from continuing operations for the first nine months of this year are expected to be in the range of $42.4 million to $42.6 million, up from $27.0 million in the first nine months of 2005.  
 
Chairman and CEO Thomas P. Sweeney said the Company also believes that for the full year ending December 31, 2006, revenues will be between $65 million and $68 million.  “We are very pleased with this year’s growth in revenue and with our progress in further expanding our services businesses.  We believe the 2007 annual revenue will be more than $100 million and the company will be positioned for continued growth beyond 2007. 
 
“As we continue to drive rapid increases in overall revenue, we are seeing strong growth in our base of recurring revenue, which includes an increasing amount of deferred service contract revenue that we recognize over time,” Sweeney added.  “These shifts in the makeup of our revenues will help increase margins, reduce quarterly fluctuations and provide greater predictability in revenue going forward.” 
 
Sweeney also said that while Incentra’s revenues are growing through acquisition, the Company also remains focused on increasing its rate of organic growth.  To accomplish this, Incentra is developing and delivering additional solutions that help its customers manage their increasing storage requirements and meet the technology challenges they face by providing automation solutions that increase efficiencies and reduce costs. 
 
Total revenues from continuing operations for the 2005 and 2006 third quarters and first nine months exclude revenues from the Front Porch Digital Broadcast and Media Division, which Incentra sold in late July of this year to Toronto-based Genuity Capital Partners in an all-cash transaction valued at $38 million.

Incentra Solutions plans to release its final third quarter and nine-month results on or before November 14.  At that time, the Company will also host a conference call to be broadcast live on the Internet at www.incentrasolutions.com.
 
About Incentra Solutions, Inc.
Incentra Solutions, Inc. (www.incentrasolutions.com) (OTCBB:ICNS) is a provider of complete IT & storage management solutions to enterprises and managed service providers in North America and Europe.  Incentra’s complete solution includes managed services, professional services, hardware and software products with the Company’s First Call and Enhanced First Call support services, IT outsourcing solutions and financing options.  
 
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. 
Rene Caron (investors)
rene@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