KANA Revolutionizes Multi-Channel Customer Service with Launch of Integrated OnDemand Suite.

KANA OnDemand Delivers the Enterprise-Class Performance and Scalability of its Award-Winning On-Premise Solutions via the Software as a Service Model

MENLO PARK, Calif. -- KANA Software Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced the availability of a fully integrated suite of OnDemand customer service solutions. Based on KANA's award-winning on-premise applications, the KANA OnDemand suite delivers the enterprise-class security, reliability and performance required for high-volume customer service operations, as well as the traditional benefits of a Software as a Service (SaaS) solution, including lower total cost of ownership, more rapid implementation and faster time-to-value. As a result, organizations can deliver consistent, managed service across all channels, including email, chat, call center and Web self-service, more efficiently and cost effectively than ever before.

KANA's multi-channel customer service solutions have repeatedly proven their ability to help companies significantly improve service quality, reduce costs and generate additional revenue from effective service and support interactions. To meet the growing demand for these market-leading capabilities in a SaaS delivery model, KANA introduced versions of KANA Response and KANA Response Live in 2005 in this model. Based on the success of this initial launch, and significant customer adoption, KANA is now bringing to market a full OnDemand suite of integrated multi-channel customer service solutions, including KANA Response OnDemand for high-volume email response management and case management; KANA Response Live OnDemand for live chat, co-browse and Web collaboration; and KANA IQ OnDemand, a knowledgebase solution for agent-assisted and Web self-service.

"While many companies are attracted to the SaaS model for its rapid implementation and lower costs, they still require the robust functionality and scalability of traditional software," said Michael Fields, chief executive officer of KANA. "KANA's OnDemand suite is built upon proven technologies that can effectively meet the needs of companies of all sizes, while reducing the cost and resources needed to deliver superior service and support across channels. In the coming months and years, we anticipate that the reputation and performance of our solutions will propel KANA to the forefront of the OnDemand customer service market."

KANA also announced today that Virginia-based health insurance provider Optima Health is leveraging KANA Response OnDemand to more effectively interact with and service members via its rapidly growing email channel. Optima Health selected KANA Response OnDemand because it provided the depth of functionality to meet the company's needs, including stringent data security requirements, without requiring large upfront capital outlays.

KANA provides access to the KANA OnDemand suite through robust, secure, tier one hosting facilities. These facilities are designed to manage multi-channel customer interactions and are equipped to deliver the security, reliability and performance required for high-volume customer service operations. KANA's hosting facility has full network and power redundancy and is built to withstand most natural disasters. Moreover, the KANA OnDemand suite has built-in failover inherit within the applications. In the event that a server fails, the application will automatically failover to a backup server to ensure continued uptime.

With KANA OnDemand, businesses have complete flexibility to segregate data within one department or allow full cross departmental and company-wide data access within the same installation. This provides a true 360 degree view of a customer across multiple departments within an organization. In addition, KANA enables businesses to get started quickly and cost-effectively with KANA OnDemand while providing the ability to migrate to on-premise software at any time, as business needs and customer service requirements evolve. KANA leverages industry standard and accepted third party database software to move and port data from KANA OnDemand to the on-premise environment, ensuring seamless data migration.

The KANA OnDemand suite 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 the benefits of KANA's solutions. 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; and inability to enhance and develop our products and services within budget and on schedule. 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.