Bruce Power Projects Savings of $7.5 Million with KANA; KANA IQ Deployment Dramatically Improves Productivity While Reducing Costs.

Business Editors/High-Tech Writers

MENLO PARK, Calif.--(BUSINESS WIRE)--April 16, 2003

KANA(R) (NASDAQ: KANA), a leading provider of enterprise customer support and communications applications, today announced that Bruce Power, the largest independent power generator in Ontario, Canada, has dramatically improved productivity while reassigning staff to more strategic tasks as a result of its deployment of KANA IQ(TM) software, a robust self-service knowledge base. By reducing time spent researching and answering human resources questions and increasing productivity, Bruce Power confirms KANA IQ will pay for itself within the first year of deployment. Overall, Bruce Power expects to save over $7.5 million annually once it deploys its Knowledge Repository across all business units.

Bruce Power faced two significant challenges prior to its implementation of KANA. With several means of providing information to its 3,200 employees, Bruce Power realized its employees spent a significant amount of time searching for the information they needed and ultimately called the human resources department directly for HR related information. In addition, a large percentage of Bruce Power employees were approaching retirement age and Bruce Power was concerned that vital information would be lost with the turnover if it was not stored in a central knowledge base. To significantly increase productivity, create a central Knowledge Repository and provide easier access to information for employees, Bruce Power implemented KANA IQ. KANA IQ now supports 20,000 hits per month, and employees resolve between 200 and 300 human resources issues per day, online.

"We chose KANA IQ because we needed an application that would be easy to implement, support authoring workflows for non-technical contributors and could support wireless communication devices," said Chris Michel, manager of technology solutions at Bruce Power. "KANA IQ met all of these requirements and our employees immediately embraced the new self-service solution without requiring training."

KANA IQ is an integral part of the KANA iCARE(TM) suite, a comprehensive enterprise software suite made up of modular eCRM applications, including an ultra-scalable contact center application, the industry's leading in- and out-bound e-mail management system, a robust knowledge base for self- and assisted-service and sophisticated marketing and analytics. KANA's modular approach to enables companies like Bruce Power to quickly deploy applications that increase communication and provide immediate and measurable return on investment.

"Bruce Power's Knowledge Repository is an excellent example of how companies can utilize KANA's communication support applications to streamline business processes, create knowledge centers and save employees time," said Tom Doyle, president of KANA. "By deploying KANA IQ, companies see real savings as information is accessed quickly and easily, increasing productivity in addition to customer and employee satisfaction."

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. Hundreds of 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 an industry-leading customer-centric eCRM solution 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 global customer base includes 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, TaylorMade-adidas Golf and Williams Sonoma are among the industry leaders that have implemented KANA's eCRM solutions. KANA has 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.