Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
RUSSO FRANK S
   2. Issuer Name and Ticker or Trading Symbol
ION NETWORKS INC [IONN.OB] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
C/O ION NETWORKS, INC., 120 CORPORATE BOULEVARD		 3. Date of Earliest Transaction (Month/Day/Year)
01/28/2004
(Street)

SOUTH PLAINFIELD, NJ 07080		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Options to Purchase Common Stock $ 0.12 08/08/2006   A   1,500   08/08/2006 08/08/2011 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.21 05/10/2006   A   1,500   05/10/2006 05/10/2011 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.18 03/15/2006   A   1,500   03/15/2006 03/15/2011 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.205 02/14/2006   A   1,500   02/14/2006 02/14/2011 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.18 01/23/2006   A   3,000   01/23/2006 01/23/2011 Common Stock 3,000 $ 0 3,000 D  
Options to Purchase Common Stock $ 0.11 11/18/2005   A   13,000   11/18/2005 11/18/2010 Common Stock 13,000 $ 0 13,000 D  
Options to Purchase Common Stock $ 0.145 09/14/2005   A   1,500   09/14/2005 09/14/2010 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.145 05/26/2005   A   1,500   05/26/2005 05/26/2010 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.23 02/22/2005   A   1,500   02/22/2005 02/22/2010 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.35 11/02/2004   A   1,500   11/02/2004 11/02/2009 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.085 08/12/2004   A   1,500   08/12/2004 08/12/2009 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.095 04/29/2004   A   1,500   04/29/2004 04/29/2009 Common Stock 1,500 $ 0 1,500 D  
Options to Purchase Common Stock $ 0.115 01/28/2004   A   13,000   01/28/2004 01/28/2009 Common Stock 13,000 $ 0 13,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
RUSSO FRANK S
C/O ION NETWORKS, INC.
120 CORPORATE BOULEVARD
SOUTH PLAINFIELD, NJ 07080		   X      

Signatures

 /s/ Frank S. Russo   09/28/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

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