KANA Refines the Multi-Channel Customer Experience with the KANA Suite 9.

Significant Upgrades to KANA's Multi-Channel Suite Include Deeper Feature Integration, a Common Reporting Infrastructure and Enhanced Content Authoring and Search Capabilities

MENLO PARK, Calif. -- KANA Software Inc. (PinkSheets: KANA.PK), a world leader in multi-channel customer service, today announced that it has added powerful new features and enhancements to the company's integrated suite of multi-channel customer service solutions. The KANA Suite 9 expands the depth and breadth of KANA's multi-channel capabilities with significant upgrades to KANA Response, KANA's industry-leading email response management application; KANA Response Live, the company's comprehensive solution for live chat and Web collaboration; KANA Contact Center, its universal agent desktop; and KANA IQ, an award-winning knowledgebase for agent-assisted and Web self-service.

In a research report published by the Service & Support Professionals Association (SSPA), Vice President of Research John Ragsdale writes that "the monthly average of incidents created via electronic channels (email, chat, web self-service) has caught up to phone incidents, and we expect this 'eChannel' volume to bypass phone by the end of 2006." Given the rapid adoption of eChannels, Mr. Ragsdale recommends that organizations "step up support for non-phone channels to create an 'omni-channel,' meaning an identical service experience is delivered for all channels offered to the customer." ("2006: Year of the Omni-Channel," July 18, 2006)

KANA's integrated solutions enable organizations to deliver consistent, managed service across all channels, including email, chat, call centers and Web self-service, ensuring a consistent service experience regardless of how customers choose to communicate. Building upon this deep-featured integration, the KANA Suite 9 provides agents with a complete customer history, including emails, chat transcripts, phone records and self-service sessions, enabling them to better understand customer needs and provide the most appropriate response. In addition, a common agent desktop allows users to seamlessly navigate between KANA IQ, KANA Contact Center, KANA Response and KANA Response Live. As a result, agents can launch KANA IQ from any KANA application, quickly locate the necessary information in the knowledgebase and then insert the solution into an email or chat session or use it during a phone conversation. By leveraging a single source of knowledge to power all customer interactions, companies are able to provide more accurate, consistent and timely service with minimal keystrokes.

The new release also features an enhanced common reporting infrastructure that enables users to more easily create, modify and deploy custom reports via the Web, improving the ability of contact centers to identify service trends, anticipate customer behavior and proactively respond to changing demands. In addition, users can access all reports from a common launch page, simplifying administration and multi-channel contact center management.

The KANA Suite 9 also includes the following new features and enhancements:

* Agent Authoring - Enables users to publish content from KANA Response and KANA Response Live directly to KANA IQ. Because email or chat conversations are pre-filled in the KANA IQ authoring interface, agents can quickly capture and share best practices for future use.

* Search-as-you-type - Searches knowledge sources as users type and allows agents to highlight text in an email or chat session and automatically search KANA IQ for relevant information and solutions.

* 360 Degree View Replay - Replays sessions that have been escalated from KANA IQ to KANA Response or KANA Response Live, allowing the agent to understand the customer's search history and more quickly and accurately resolve the inquiry.

* Wizard-driven Installation - Dramatically reduces the time needed to implement and configure KANA applications by guiding organizations through the process of installing, configuring, and automatically loaded knowledge base content.

* AJAX Support - Organizations using KANA's cobrowse capabilities can leverage the power of AJAX and still allow customers to securely cobrowse self-service pages.

"A new breed of technology savvy customers is driving organizations to deliver the same consistent experience across all service and support channels," said Marchai Bruchey, chief marketing officer at KANA. "The latest version of the KANA Suite enables organizations to implement a true multi-channel customer service strategy capable of meeting these complex demands without a corresponding increase in costs."

The KANA Suite 9 is available immediately. Pricing details are available upon request.

About KANA

KANA is a world leader in multi-channel customer service. KANA's integrated solutions allow companies to deliver consistent, managed service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. KANA's clients report double-digit increases in customer satisfaction, while reducing call volumes by an average of 20%. KANA's award-winning solutions are proven in more than 600 companies worldwide, including approximately 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. 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 demand for multi-channel customer service solutions, and KANA's growth and success. 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.

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