KANA Announces Appointment of John Thompson as Chief Financial Officer.

MENLO PARK, Calif. -- KANA(R) (NASDAQ: KANA), the leading provider of Service Resolution Management (SRM) solutions, today announced that John Thompson will join the company as Chief Financial Officer (CFO) and Executive Vice President of KANA.

"John is a seasoned professional with a unique depth and breadth of experience," said Chuck Bay, CEO of KANA. "His extensive background in the software industry makes him an excellent addition to our executive management team. His experience will be invaluable as we continue to drive technology innovation and focus on profitability."

Mr. Thompson brings over 30 years of financial leadership and software experience to KANA. Prior to joining KANA, Mr. Thompson was CFO of several private software companies, including Veraz Networks, Interwise, Manage.Com and One Touch Systems, Inc. Previously, Mr. Thompson was CFO of publicly traded Photonics Corporation, which sold wireless hardware and software communications products to the world's largest OEMs. He also acted as Corporate Controller and Director of Operations of Oracle Corporation from 1984 to 1992, during Oracle's high growth period. Mr. Thompson started his career at Hewlett-Packard, where he rose to several finance and accounting managerial roles, culminating in Finance Manager for HP's $3 billion computer business.

"KANA has the best SRM solutions in its industry, a great management team, and, I believe, excellent growth prospects. I'm delighted to be joining KANA," said Mr. Thompson. "I am confident that my extensive background in the software industry will help to lead KANA to a strong financial future and continued leadership in the industry."

About KANA

KANA is the 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 more than half of the world's largest 100 companies. 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 customer demand for KANA OnDemand, the ability of KANA OnDemand to address customer needs, and the performance of KANA's Service Resolution Management Products. 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; 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.