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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 HlbW/BKaArlpqKFZu8Ca7ddicX9UMTN+Uu4LkDMD33jngWfR8jdya4CRaM+wIOHQ
 HmnCzkn9HzB0OoXsxVm61w==

<SEC-DOCUMENT>0001181431-04-001032.txt : 20040105
<SEC-HEADER>0001181431-04-001032.hdr.sgml : 20040105
<ACCEPTANCE-DATETIME>20040105193359
ACCESSION NUMBER:		0001181431-04-001032
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031222
FILED AS OF DATE:		20040105

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MICHELS DOUGLAS L
		CENTRAL INDEX KEY:			0000942844

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21484
		FILM NUMBER:		04507379

	BUSINESS ADDRESS:	
		STREET 1:		400 ENCINAL STREET
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95061
		BUSINESS PHONE:		8314257222

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TARANTELLA INC
		CENTRAL INDEX KEY:			0000851560
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				942549086
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		425 ENCINAL STREET
		STREET 2:		PO BOX 1900
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95061
		BUSINESS PHONE:		4084277172

	MAIL ADDRESS:	
		STREET 1:		425 ENCINAL STREET
		STREET 2:		PO BOX 1900
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95061

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SANTA CRUZ OPERATION INC
		DATE OF NAME CHANGE:	19940614
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd27878.xml
<DESCRIPTION>DLM96 GIFT
<TEXT>
<XML>
<?xml version="1.0"?><ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType><periodOfReport>2003-12-22</periodOfReport><notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000851560</issuerCik>
        <issuerName>TARANTELLA INC</issuerName>
        <issuerTradingSymbol>TTLA</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000942844</rptOwnerCik>
            <rptOwnerName>MICHELS DOUGLAS L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>425 ENCINAL ST.</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SANTA CRUZ</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95060</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector><isOfficer>0</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther></reportingOwnerRelationship></reportingOwner><nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>Common Stock</value></securityTitle><transactionDate><value>2003-12-22</value></transactionDate><deemedExecutionDate><value>2003-12-22</value></deemedExecutionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>G</transactionCode><equitySwapInvolved>0</equitySwapInvolved><footnoteId id="F1"/></transactionCoding><transactionAmounts><transactionShares><value>171111</value></transactionShares><transactionPricePerShare><value>1.20</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>359569</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction><nonDerivativeHolding><securityTitle><value>Common Stock</value></securityTitle><postTransactionAmounts><sharesOwnedFollowingTransaction><value>15000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>I</value></directOrIndirectOwnership><natureOfOwnership><value>by J3D Ltd. Partnership</value></natureOfOwnership></ownershipNature></nonDerivativeHolding><nonDerivativeHolding><securityTitle><value>Common Stock</value></securityTitle><postTransactionAmounts><sharesOwnedFollowingTransaction><value>71000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>I</value></directOrIndirectOwnership><natureOfOwnership><value>by Lawrence Michels Family Ltd Parnership</value></natureOfOwnership></ownershipNature></nonDerivativeHolding></nonDerivativeTable><footnotes><footnote id="F1">Shares gifted to The DLM1996 Irrevocab
le Trust.  Mr. Michels disclaims beneficial ownership of these shares.</footnote></footnotes><ownerSignature><signatureName>Douglas L. Michels</signatureName><signatureDate>2004-01-05</signatureDate></ownerSignature></ownershipDocument>



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