AnswerPro Relies on KANA's eService Solutions to Power Superior Web-Based Customer Service; Company Deploys KANA Response and KANA Response Live as Part of its Multi-Channel Customer Service Strategy.

MENLO PARK, Calif. -- KANA Software Inc. (PinkSheets: KANA.PK), a world leader in multi-channel customer service, today announced that AnswerPro has implemented KANA Response and KANA Response Live, KANA's eService solutions for e-mail response management, live chat and Web collaboration. As a result of the deployment, AnswerPro, a provider of customer care for Internet service providers (ISPs), has empowered its customers to contact the company through their channel of choice, while ensuring that inquiries are resolved quickly and accurately, regardless of channel.

AnswerPro selected KANA Response and KANA Response Live to power Web-based customer service for a number of reasons, including KANA's reputation as a best-of-breed eService vendor as well as positive experiences with its technology in previous engagements. Having successfully deployed the KANA applications, the company is able to deliver consistent, managed service across all channels, including email, chat and the Web. The solution's robust reporting and analytics capabilities have also enabled the company to consistently measure and enforce policies for service performance, including the percentage of emails answered each day.

Integrated with KANA Response, KANA Response Live is a comprehensive solution for live chat and Web collaboration that enables customers to instantly engage with AnswerPro agents via the Web, ensuring that inquiries are resolved as quickly as possible and without escalation to calls into the contact center. Currently, approximately 25 percent of AnswerPro's service interactions are handled via live chat, which has resulted in a substantial reduction in call volumes and service delivery costs.

"We wanted to open up accessibility for our customers, giving them more communication options without a corresponding increase in costs," said Jeffrey Young, IT director for AnswerPro. "We knew KANA Response and KANA Response Live were leading products and are very pleased with the level of efficiency and effectiveness they have brought to our customer service team."

"Research indicates that the volume of Web-based customer interactions will exceed telephone volume for the first time this year," said Marchai Bruchey, chief marketing officer at KANA. "As leading organizations like AnswerPro look to meet this increasing demand while maintaining an exemplary customer experience, they continue to turn to KANA for the most scalable and effective eService solutions on the market."

About KANA

KANA is a world leader in multi-channel customer service. KANA's integrated solutions allow companies to deliver consistent, managed service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. KANA's clients report double-digit increases in customer satisfaction, while reducing call volumes by an average of 20%. KANA's award-winning solutions are proven in more than 600 companies worldwide, including approximately half of the world's largest 100 companies. For more information visit www.kana.com.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995:

Information in this release regarding KANA's forecasts, projections, expectations, beliefs, and intentions are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to KANA as of the date of this release, which may likely change, and we assume no obligation to update any such forward-looking statement. These statements include statements about demand for multi-channel customer service solutions, and KANA's growth and success. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, but are not limited to: competition in our marketplace, including introductions of new products or services, or reductions in prices, by competitors; risks associated with lack of market acceptance of KANA's products or services; inability to enhance and develop our products and services within budget and on schedule; inability to attract and retain qualified employees, to manage cash and expenditures or to expand sales; inability to manage our business in light of recent personnel reductions; KANA's history of losses; the effect of potential military action and terrorist activities; and slow economic conditions, particularly as they affect spending by our prospective customers on SRM and similar enterprise software products. These and other factors are risks associated with our business that may affect our operating results and are discussed in KANA's filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q.

NOTE: KANA is a registered trademark of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.