UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 1022, 2005

ImproveNet, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-29927	77-0452868
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer dentification No.)

10799 N. 90^th Street, Suite 200 Scottsdale, Arizona	85260
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 480-346-0000

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 21.01. Entry ~~Completion~~into ofa Material ~~Acquisition~~Definitive ~~or Disposition of Assets~~ Agreement

On June 622, 2005, ~~eTechLogix~~ImproveNet, Inc. ~~(“Etech”)~~, a ~~wholly~~Delaware ~~owned~~corporation ~~subsidiary of~~ (“ImproveNet~~, Inc.~~” ~~(the~~or the “Company”), ~~completed the sale to 20-20 Technologies International~~ServiceMagic, Inc. ~~(‘2020”) of the intangible assets and certain property and assets of Etech~~, ~~including~~ ~~its~~a ~~SmartFusion~~Delaware ~~software~~corporation line and contracts and service and support agreements relative thereto which are held by Etech along with the obligation to provide some limited knowledge transfer services to 2020 for the software (~~the~~ “~~Sale~~ServiceMagic”). ~~Etech~~and ~~received~~ a ~~cash payment of $350,000 at the closing of the Sale~~ ~~and~~subsidiary ~~will receive (i) twenty percent (20%)~~ of ~~the~~IAC/Interactive ~~gross revenue generated from sales of the SmartFusion software line and recurring licensing revenue from existing customers from the closing date through October 31~~Corp., ~~2007,~~a ~~and~~Delaware ~~(ii) ten percent~~corporation (~~10%~~“IAC”), ~~of the gross revenue generated from sales of the SmartFusion software line~~ and ~~recurring licensing revenue from new customers from the~~ Sunbelt ~~closing~~Acquisition ~~date through October 31, 2007~~Corp. ~~The percentage payments noted above~~, a ~~are to~~Delaware becorporation ~~paid quarterly on January 31, April 30, July 31~~ and ~~October~~wholly 31owned ofsubsidiary ~~each year and are not to exceed an aggregate amount~~ of ~~$100,000.~~ServiceMagic ~~In addition, Etech and eTechLogix Systems Bangladesh Ltd.~~ (“~~Bangladesh~~Merger Sub”), ~~a company beneficially~~ ~~owned~~entered byinto ~~two~~an ofAgreement ~~the~~and ~~Company’s~~Plan ~~directors,~~of ~~have~~Merger ~~undertaken to cause~~ (i) the ~~transfer~~ of“Merger ~~the~~Agreement”), ~~office lease with Bangladesh to be assigned or transferred~~pursuant to ~~a Bangladesh company newly formed by 2020~~which, ~~and~~subject ~~(ii) the employees~~ to ~~resign from Bangladesh~~satisfaction ~~and~~or towaiver ~~offer~~of tothe ~~become~~conditions ~~employed~~therein, ~~by a Bangladesh company newly~~Merger ~~formed by~~Sub ~~2020~~will ~~upon~~merge ~~substantially~~with ~~similar terms~~ and ~~conditions.~~into ~~2020~~ImproveNet ~~did not assume any liabilities of Etech or Bangladesh in~~ (the ~~Sale~~“Merger”). ~~The~~As ~~Company~~a ~~and~~result ~~2020~~of ~~currently~~the ~~have~~Merger, aImproveNet ~~cross-marketing~~will ~~agreement~~become ~~for~~a ~~the~~wholly ~~marketing~~owned ofsubsidiary ~~the Company’s services to designated customers~~ of ~~2020~~ServiceMagic.

~~Item 9.01~~At ~~Financial~~the effective ~~Statements~~time of the Merger, ServiceMagic will acquire all of the outstanding shares and ~~Exhibits~~in-the-money warrants and stock options of ImproveNet for a cash price of approximately $6.72 million, or approximately $.121 per share, subject to certain adjustments.

~~(b)~~ Completion ~~Pro~~of ~~Forma~~the ~~Financial~~Merger ~~Information.~~is subject to a number of conditions, including the following:

~~The~~• ~~financial~~the ~~statements~~approval ~~required~~of tothe beMerger ~~filed~~and inthe ~~this~~Merger ~~Form~~Agreement ~~8-K~~by ~~will be filed as soon as practicable, but not later than 71 calendar days after~~ the ~~date~~stockholders of ~~filing of this Form 8-K.~~ ImproveNet;

•	the receipt of all applicable regulatory approvals; and

•	the absence of any legal prohibitions to consummation of the Merger.

A copy of the press release announcing the execution of the Merger Agreement is attached as Exhibit 99.1 hereto and is incorporated herein by this reference.

Forward-Looking Statements

Information set forth in this report contains forward-looking statements, which involve a number of risks and uncertainties. ImproveNet cautions readers that forward-looking information is not a guarantee of future results and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, statements about the likelihood that the Merger will be completed in the time frame contemplated by the parties, or at all.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to obtain regulatory approvals of the transaction on the proposed terms and schedule; the failure of ImproveNet’s stockholders to approve the transaction; disruption resulting from the pending transaction and transaction activities making it more difficult to maintain relationships with customers, employees or suppliers pending the closing; and the failure to satisfy any of the conditions to closing. Additional factors that may affect future results are contained in ImproveNet’s filings with the SEC, which are available at the SEC’s website www.sec.gov. ImproveNet disclaims any obligation to update and revise statements contained in these materials based on new information or otherwise.

Item 9.01. Financial Statements and Exhibits.


	Exhibit		Description

	99.1		Press Release issued on June 22, 2005

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ImproveNet, Inc.
Date: June 10, 2005	By:	/s/ Jeffrey Rassas
Date: June 23, 2005	By:	/s/ Jeffrey Rassas
		Name: Jeffrey Rassas
		Title: Chief Executive Officer

~~End~~EXHIBIT ofINDEX ~~Filing~~


Exhibit		Description

99.1		Press Release issued on June 22, 2005

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