Brian Kelly, CRM Industry Veteran, Joins KANA Executive Staff.

Business Editors

MENLO PARK, Calif.--(BUSINESS WIRE)--July 9, 2003

Kelly to Lead Product Strategy for KANA's Web-Architected eCRM Applications

KANA(TM) (NASDAQ: KANA), a leading provider of enterprise customer support and communications applications, today announced that Brian Kelly has joined KANA as executive vice president of product strategy. In this role, Mr. Kelly will be responsible for KANA's product vision and strategy as the company continues to develop its industry-leading eCRM applications optimized for key vertical markets.

Mr. Kelly brings his extensive experience in product development and strategy to help ensure KANA remains a visionary leader in the eCRM market. Mr. Kelly brings 15 years of experience in CRM to the company, including the knowledge and experience he acquired working with the current KANA analytics and enterprise CRM tools in his role as executive vice president of products at Broadbase Software prior to its merger with KANA. At Broadbase, Mr. Kelly was instrumental in product strategy and actively participated in its successful IPO in 1999, and secondary stock offering in 2000.

"We are extremely excited to bring one of the industry's brightest and most innovative minds back to KANA," said Chuck Bay, CEO of KANA. "Brian Kelly's track record in building a company's product offering speaks for itself. We look forward to having Brian work closely with our partners, development team and customers on our industry-leading customer service applications."

Mr. Kelly's most recent role was as vice president at Kanisa Inc. where he managed product strategy and engineering. Mr. Kelly has also served as president and CEO of Proveer, a software and services company that provides analytical applications and business intelligence infrastructure. Prior to Proveer, Mr. Kelly consulted for various CRM enterprises.

"I am thrilled to re-join the KANA executive team," said Mr. Kelly. "With the talented individuals and knowledge of the eCRM industry that is currently at KANA, we will be able to continue producing some of the most sought after enterprise eCRM applications. Along with the third party integrators and partners that KANA works with, I look forward to spearheading the overall strategy behind our products and bringing to our current and future customers the most innovative and cost-effective eCRM applications."

KANA provides eCRM applications optimized for specific industries to drive better relationships through effective, efficient interactions with customers at all points of contact (self-service, Web collaboration, phone, e-mail, live chat) and throughout the enterprise. KANA's industry-specific applications and customizations address the unique needs of Global 2000 organizations in these markets, giving businesses a competitive advantage and increasing their ability to service, market to and sell to their customers. Companies around the world benefit from KANA's customer-centric approach to managing customer relationships, which combines sophisticated analytics with thin-client Web architecture to deliver extraordinary customer interactions that decrease costs and drive revenue.

About KANA

KANA (NASDAQ: KANA) provides enterprise customer support and communications applications enabling organizations to better service, market to, and understand their customers and partners. Optimized for specific vertical industries, KANA's iCARE applications are in use at more than half of the world's largest 100 companies. An award-winning, modular suite of eCRM applications available on J2EE and .Net, KANA iCARE applications enable customers to do business when, where and how they want, improving customer experiences while decreasing costs in contact centers and marketing departments. KANA's partner-centric business model includes strategic relationships with the largest systems integrators in the world to support and sell KANA iCARE. 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. These statements include statements about KANA's expected revenue, operating results, EBITDA, cash flows, long-term success, new business and market position. 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 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 eCRM 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, and KANA Software, KANA iCARE, KANA Contact Center, KANA IQ, KANA ResponseIQ, KANA Response, KANA Marketing, KANA iCARE Analytics and the KANA logo are trademarks of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.