British Telecom Turns to KANA to Manage Communication With More Than Five Million Customers.

Business Editors/High-Tech Writers

MENLO PARK, Calif.--(BUSINESS WIRE)--Feb. 19, 2003

KANA's Industry Leading eCRM Application for the Telecommunications Industry Helps BT Provide World-Class Customer Care and Reduce Cost of Customer Service

KANA(R) (NASDAQ: KANA), a leading provider of enterprise customer support and communications applications, today announced that British Telecom (BT), the UK's premier telecom provider, has implemented KANA Response(TM) software to handle incoming e-mail correspondence sent via its Web portal, BT.com. With KANA Response, the industry's leading e-mail management application optimized specifically for the telecommunications industry, BT is able to respond rapidly to all incoming customer e-mails, while also providing accurate responses to these requests.

With more than five million customers spanning all segments of the communications market, BT expects to receive up to 20,000 e-mails each week through its Web portal, BT.com. Currently, several hundred customer advisor and support employees use the software to answer the vast majority of these e-mails, helping to resolve a wide range of product and service support queries, and answer customer responses to BT's e-mail campaigns.

"E-mail is a vital part of customer communication. We wanted to make the most of that contact, so we replaced our previous provision, which utilized many different e-mail management systems, with one of the industry's best," said Adam Marchmont, systems development manager, BT Retail Shared Infrastructure. "We had two main objectives for this implementation - both of which KANA has helped us to realize. The first was to provide quality customer service, answering over one million e-mails per year at minimal cost. The second goal was to use the new system to track and measure changing customer trends. We are now using information gained from our analysis of customer queries and feeding this back to support departments so that we continually enhance our customer service."

With KANA Response's automatic routing capabilities, all BT.com e-mail queries are forwarded to call center agents with the most appropriate expertise, so that customers receive the right answer to their questions in the quickest possible time. BT also analyzes the various categories of e-mails sent, using this customer trend information to continually enhance customer support materials, such as product handbooks. This reduces the number of incoming queries, saving future support costs.

"As the largest telecom company in the U.K., providing quality customer service at an affordable price is a top priority for BT," said Bud Michael, executive vice president of products and marketing for KANA. "With KANA's Web-architected eCRM application optimized for the telecommunications industry, companies like BT are able to reduce costs in the call center while improving customer service."

An integral component of the KANA iCARE(TM) suite, KANA Response is the most effective and widely used e-mail management system in the world. It provides world-class agent-assisted service with fast, high volume, intelligent, automated e-mail, Web, and instant messaging request management.

Based on the company's success with BT and other customers in the telecommunications industry, KANA has established a set of industry-specific applications and customizations to address the unique needs of this market. These applications help telecommunications organizations move customer interactions to lower cost channels, increase customer acquisition retention rates and reduce churn. Telecommunications companies battling in an increasingly competitive market leverage KANA to provide easy access to information for customers seeking answers about highly-personalized service plans. The applications help customer service agents easily up-sell value- added services to increase the profitability of each customer and deliver proactive notification of payment plans and past due notices through e-mail, Web and phone channels.

KANA provides eCRM applications optimized specifically for the telecommunications, financial services, healthcare, high technology, retail, government and higher education markets 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. More than 1,300 companies worldwide 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 industry-leading customer-centric eCRM applications to the largest businesses in the world, helping them to better service, market to, and understand their customers and partners, while improving results and decreasing costs in contact centers and marketing departments. Through comprehensive multi-channel customer relationship management that combines the best-in-class KANA iCARE Architecture with enterprise applications, KANA has become one of the fastest-growing providers of next generation eCRM technology. The company's customer-focused service, marketing and commerce software applications enable organizations to improve customer and partner relationships by enabling them to productively interact when, where and how they want - across all touch points, including web contact, web collaboration, e-mail, and telephone. KANA's eCRM applications are successfully deployed at Global 2000 organizations in the financial services, manufacturing, high technology, communications, retail and services markets. ADP, Chase, E*Trade, GAP, GM, Hewlett-Packard, Kodak, Sony, United Airlines, Verizon, and Williams Sonoma are among the industry leaders that have implemented KANA's eCRM applications. KANA provides industry specific eCRM applications for Healthcare, Financial Services, High Technology, Communications, Retail and Government/Public Sector. KANA has customer sales and support locations in 22 countries worldwide, in addition to an extensive global network of channel partners. For more information, please 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.