KANA Receives ''Strong Positive'' Rating in Leading Analyst Web Self-Service MarketScope Report.

MENLO PARK, Calif. -- KANA Also Received "Positive" Ratings in E-Service and E-Mail Response MarketScope Reports

KANA Software Inc. (NASDAQ: KANA), the leading provider of Service Resolution Management (SRM) solutions, today announced that Gartner, Inc. (NYSE: IT and ITB), the leading provider of research and analysis on the global information technology industry, has included KANA in its 2005 E-Service, E-Mail Response Management (ERMS) and Web Self-Service MarketScopes.(1)

Published in January 2005 by Gartner, the MarketScopes evaluate technologies that are either in the early or late stages of the technology life cycle. The ratings are based on an evaluation of vendors across four to five broad categories such as financial viability, current and future product vision, delivery channels, and application agility.

KANA received a "Strong Positive" in the Web Self-Service MarketScope. Gartner defines vendors with a "Strong Positive" rating as a solid provider of strategic products, services or solutions. According to Gartner, customers should continue investments and potential customers should consider this vendor a strong strategic choice. KANA was rated "Positive" in both the E-Service and ERMS MarketScopes. This rating is determined by evaluating and analyzing the market as a whole as well as the analysts' interaction with customers, prospects, vendors, consultants and integrators. Vendors with a "Positive" rating demonstrate strength in specific areas, but are largely opportunistic. Customers should continue incremental investments, while potential customers should put this vendor on a shortlist of tactical alternatives.

"We consider Gartner's evaluation of KANA, our products and our strategy a testament to the strength and significance of KANA's service resolution management solutions in the marketplace," said Brian Kelly, Executive Vice President of Marketing and Product Strategy. "We feel these ratings also confirm that KANA has moved beyond being only an ERMS provider. As we enter 2005, KANA will continue to focus on enabling organizations to resolve customer service inquiries faster and more accurately, thereby reducing costs and increasing customer satisfaction."

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

NOTE: KANA is a registered trademark of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.

The MarketScope is copyrighted by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

(1) Marketscope 2H04 Update: The E-Service Market Shows Promise by Esteban Kolsky. January 5, 2005; Marketscope for Web Self-Service, 2H04 by Esteban Kolksy. January 6, 2005; and, Marketscope: E-Mail Response Management Systems, 2H04 Update by Esteban Kolksy, January 6, 2005.