KANA Enables VELUX to Provide Superior Customer Service at Reduced Costs.

Business Editors/High-Tech Writers

MENLO PARK, Calif.--(BUSINESS WIRE)--Nov. 4, 2003

KANA's Applications Help Leading Manufacturer of Roof Windows and Skylights Provide Excellent Customer Service and Answer 70,000 E-mail Inquiries Annually

KANA(R) (NASDAQ: KANA), a leading provider of knowledge powered CRM applications, today announced that VELUX(R), the world's leading manufacturer of roof windows and skylights, is using KANA Response(TM) software to accurately and efficiently respond to the 70,000 customer inquiries its German contact center receives annually. Based on its success reducing e-mail response times with KANA, the company is considering expanding its use of KANA to its contact centers in the United Kingdom and France.

VELUX experienced a significant increase in the volume of e-mail it was receiving as VELUX customers and prospects began taking advantage of the possibilities provided by the company's Web site. These customer inquiries ranged from specific technical support questions to requests for additional information and company brochures. With KANA Response, customer service representatives in the VELUX contact center are able to successfully handle the additional inquiries, and now have the option to forward queries to the appropriate expert to ensure fast and accurate responses.

"We're receiving increasing numbers of queries by email, and need to ensure that our customers receive the best service possible through the communication channels they have chosen," comments Kim Bernbom, e-Business Project Manager VELUX. "We selected KANA to help us provide this high level of service. We expect the technology to not only give us a robust email management capability for our current needs, but also to be flexible enough to ensure that our future needs can be met."

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 customers like VELUX with world-class, agent-assisted service with fast, high volume, intelligent, automated e-mail, Web, and instant messaging request management.

"Companies today face the challenge of providing superior levels of customer service through a variety of communications channels at a low cost," said Brian Kelly, executive vice president of product strategy at KANA. "VELUX is a great example of how companies are leveraging KANA's eCRM solutions to provide cost-effective customer service while maintaining the flexibility to ensure that its system can be easily adapted to meet tomorrow's challenges."

KANA's CRM solutions address the needs of Global 2000 organizations in healthcare, telecommunications, financial services, high technology and other 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 knowledge-powered 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 knowledge-powered customer service 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.