Bertelsmann Marketing Service Selects Kana Communications for Development of Internet Contact Centre.

Business Editors/High Tech Writers

REDWOOD CITY, Calif.--(BUSINESS WIRE)--July 25, 2000

Kana Communications, Inc. (NASDAQ:KANA), a leading provider of enterprise relationship management solutions, today announced that Bertelsmann Marketing Service, a division of the German media and publishing group, has selected Kana as the backbone of its new Internet Contact Centre. Kana is a leading eRM solution for the delivery of high quality responses to customer queries. Following a successful pilot project and development phase of only three months, the Internet contact centre is up and running.

"More and more of our customers are using the Internet to gather information, submit queries and order products," stated Ralf Keller, customer manager & head of email integration at Bertelsmann Marketing Service. "We want to optimize our use of this fast, interactive medium in order to provide our customers with efficient, personal service that is as fast as possible. The solution from Kana gives us a more or less perfect online customer service framework. In addition, seamless integration with our existing IT infrastructure and fast implementation were two further powerful arguments for the Kana solution."

To support the Internet Contact Centre, Bertelsmann Marketing Service has implemented Kana Response, together with its key components Kana Mail and Kana Reports. Kana Mail manages inbound customer emails and web forms, ensuring that incoming queries are dealt with in order of priority.

"Bertelsmann Marketing Service has taken early leadership in the German eBusiness market by its decision to implement a full online contact center," said David Fowler, vice president of Marketing at Kana. "It has recognized the importance of the Internet as the next wave of managing customer interactions. Bertelsmann Marketing Service's partnership with Kana will help underwrite its success."

Following message classification, Kana Mail's automation engine automatically responds to or - for more complex requests - suggests a response that is routed to a customer service representative for final approval and dispatch. Advanced productivity tools, such as one-click access to a customer's history, allow rapid and accurate responses to incoming queries.

Kana Reports analyses the information contained within customer communications, to provide enterprise-wide insight into trends affecting customer interactions. It is possible to allocate resources efficiently to save customer service management time by automatically capturing, reporting and analyzing large amounts of information, including visualization of information.

About Kana Communications Inc.

Kana Communications, Inc. (NASDAQ:KANA), a leading provider of web-architected enterprise relationship management (eRM) solutions, delivers a broad range of world-class, integrated e-business and interaction applications with a modular and scalable platform for both Internet and Global 2000 companies. Kana solutions deliver personal portals that offer customers, partners and the enterprise a global view of their communications and relationships. This global view includes managing the full set of communications channels such as e-mail, Web, chat, instant message, VOIP, phone and person-to-person, as well as e-business and communications applications to integrate the marketing, sales and service functions. This full-service suite enables e-businesses to compete and succeed in today's customer-driven economy. For more information about the solutions found in more than 600 companies, including 7 of the 10 most trafficked Web sites, please visit Kana at http://www.kana.com.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995: Information in this release that involves Kana's expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. These statements include statements about Kana's strategies in the marketplace, its market position and its relationship with customers. All forward-looking statements included in this release are based upon information available to Kana as of the date of the release, and we assume no obligation to update any such forward-looking statement. 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, the successful integration of Silknet, competition, increased competition due to Kana's expanded product offering, risks associated with the evolving and varying demand for customer communication software, our ability to expand our operations, the successful integration BEI and NetDialog, acceptance of email and the Internet as a communications medium, litigation over property rights, and general economic factors. These and other factors are risks associated with our business that may affect our operating results are discussed in the Company's filings with the Securities and Exchange Commission ("SEC") including our registration statements on Form S-4 and S-1, Annual Report on Form 10-K and quarterly reports on Form 10-Q.