Gem Chooses KANA Response for Its Unmatched Ability In Handling Massive Amounts of Emails In Any Language; KANA Allows Leading Contact Center Services Company to Provide Efficient and Effective Customer Service Worldwide.

MENLO PARK, Calif. -- KANA Software, Inc. (Pinksheets: KANA.PK), a leading provider of Service Resolution Management (SRM) solutions, today announced that gem, a Northern-Ireland based provider of multi-channel, multi-lingual contact center services to global organizations, is implementing KANA Response. With a client base ranging from IBM to Expedia.com and the UK Countryside Agency, gem is using KANA Response, a leading email response management application, to handle ever increasing volumes of email - up to 500,000 emails from 22 countries every day - with unprecedented efficiency. Moreover, response automation capabilities increased by 40% since the implementation of KANA's technology.

"We bombarded KANA Response with emails during our testing phase," said Gavin McGoldrick, Technology Director at gem. "It quickly became apparent that the system could easily manage any seasonal volume spikes - such as the Christmas period. Given this level of performance and extensive response automation, we knew Response was the right choice for us. It delivered the wow factor we were looking for."

Named "Best European Multimedia Contact Centre" in the European Call Centre Awards, gem provides outsourced customer support for clients in the banking, travel and tourism, retail and high tech manufacturing industries. It specializes in European language support; and resolving complex inquiries, relying heavily on technology to support its contact center teams. In order to handle massive amounts of email inquiries spanning a range of topics - from travel to parts requests - in multiple languages every day, the company turned to KANA Response.

KANA Response provides the technology gem needed by generating automated replies to each email, based on its content, and workflow capabilities to ensure quality and approval of each response. As a result, KANA ensures that gem always exceeds service agreements for email response and provides the best in customer service. At the same time, KANA Response's extensive automation functionality frees agents up to handle more complicated calls into the contact center, which would otherwise be referred directly to clients.

"KANA Response allows gem to tailor its operations to meet the best practices of each client it supports," said Marchai Bruchey, SVP of Marketing and Alliances at KANA. "Each of its customers has its own service guarantees, working processes and reporting needs - and gem's management must be able to satisfy these requirements - as well as delivering great service. gem exemplifies our potential to transform customer service operations. If ever there was a story that demonstrated the flexibility of KANA Response, this would surely be it."

About KANA

KANA is a leading provider of Service Resolution Management (SRM) solutions that improve customer satisfaction, reduce service costs, and increase revenues. KANA's award-winning suite of customer service solutions for assisted, self, and proactive service enables companies to resolve customer requests quickly and accurately across multiple channels. Built on the industry's most advanced Web architecture, KANA's solutions are in use at approximately half of the world's largest 100 companies. For more information visit www.kana.com.

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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 KANA's customers' expected benefits and results from KANA applications. 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.

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