KANA and Broadsystem Join Forces to Provide Intelligent Online Marketing and Customer Support Programs.

Business/Technology Editors

MENLO PARK, Calif.--(BUSINESS WIRE)--March 5, 2002

KANA and Broadsystem Work Together to Offer Innovative Outsourced

eCRM Solutions to BSkyB, News International and Proctor & Gamble

KANA(R) (NASDAQ: KANA), the leading provider of external-facing eCRM solutions, announced that Broadsystem, a leading provider of outsourced data-driven customer contact solutions, has further developed its relationship with KANA, using KANA Marketing(TM) software, KANA Response(TM) software and KANA IQ(TM) software to help provide companies in the United Kingdom with expert outsourced marketing communications and customer relations centers, at reduced costs.

Broadsystem offers a unique combination of expertise in live operator and automated telemarketing, and is one of the UK's top five telemarketing agencies. With a client list that includes a wide range of prestigious blue chip companies including BSkyB, Cable and Wireless, Celador, News International Newspapers, Airtours and Proctor & Gamble, Broadsystem has strengthened its expertise in truly understanding its clients' customers by providing KANA Marketing, KANA IQ and KANA Response alongside its existing offering of KANA Connect(TM) software. This enables Broadsystem to analyze, exploit and smooth the flow of customer information quickly and efficiently in a closed loop, providing customers with the ability to personalize contact with their clients.

"Broadsystem has benefited from its relationship with KANA since 2000," said Alex Green, managing director of Broadsystem. "We believe that generating profitable, long term customer relationships revolves around a core of customer understanding, based on a gradual build up of intelligence and being knowledgeable of which campaigns a customer has responded to in the past, via which communication channel; their preferred channel for purchasing and other services; and the history and frequency of communication and purchases.

"The ultimate objective of compiling this information should be to use the constant learning to inform and guide your communication with the customer. Using KANA solutions, we are able to provide the very best marketing campaigns and customer relationship management based on accurate, up-to-the-minute customer requirement information," continued Green.

"Broadsystem has gained a reputation for its commitment to providing accurate, intelligent customer communication programs," said Bud Michael, executive vice president of products and marketing at KANA. "Through our relationship, we are looking forward to providing a growing number of companies with innovative solutions that will give customers extraordinary experiences while decreasing call center costs."

Nearly 1,200 companies worldwide are using KANA next generation eCRM solutions to drive better relationships through effective, efficient interactions with customers at all points of contact (Web collaboration, phone, e-mail, live chat) and throughout the enterprise. The KANA approach to customer relationship management technology solutions combines sophisticated analytics with thin-client Web architecture to deliver extraordinary customer interactions that decrease costs and drive revenue.

About Broadsystem

Broadsystem is a leading provider of outsourced data driven customer contact solutions. The company has a unique combination of expertise in live operator and automated telemarketing, and is one of the UK's top 5 telemarketing agencies.

The company has two contact centers and a data center. Broadsystem has a wide range of blue-chip clients, including MBNA, Cable and Wireless, Continental Airlines, BskyB, Financial Services Authority, Lancome, Celador ("Who Wants To Be A Millionaire?"), GMTV, and News International Newspapers.

Owned since 1990 by News International, Broadsystem has expanded both organically and through acquisition. The acquisition in February 2000 of database marketing specialists, HDM Worboys, enables the company to offer integrated data and communications programs.

About KANA

KANA (NASDAQ: KANA) provides the industry's leading external-facing eCRM solutions to the largest businesses in the world, helping them to better service, market to, and understand their customers and partners, while improving results and decreasing costs in contact centers and marketing departments. Through comprehensive multi-channel customer relationship management that combines the best-in-class KANA iCARE Architecture with enterprise applications, KANA has become one of the fastest-growing providers of next generation eCRM technology. The company's customer-focused service, marketing and commerce software applications enable organizations to improve customer and partner relationships by enabling them to productively interact when, where and how they want - across all touch points, including web contact, web collaboration, e-mail, and telephone. KANA's global customer base includes Global 2000 organizations in the financial services, manufacturing, high technology, communications, retail and services markets. ADP, Chase, E*Trade, GAP, GM, Hewlett-Packard, Kodak, Sony, United Airlines, Verizon, and Williams Sonoma are among the industry leaders that have implemented KANA's eCRM solutions. KANA has locations in 22 countries worldwide, in addition to an extensive global network of channel partners. For more information, please visit www.kana.com.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995:

Information in this release that involves KANA's financial forecasts, projections, expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. These statements include statements about KANA's expected profitability, cash flow, revenue, margins, expenses, growth and new business, its market position and its relationship with customers. All forward-looking statements included in this release are based upon information available to KANA as of the date of the 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, risks associated with the merger with Broadbase and integration of the companies; 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; competition in our marketplace, including introduction of new products or services, or reductions in prices, by competitors; inability to attract and retain qualified employees, to manage cash and expenditures or to expand sales; inability to manage business in light of recent management changes and personnel reductions; KANA's history of losses; and trends and uncertainties slowing and uncertain 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 are discussed in KANA's filings with the Securities and Exchange Commission ("SEC"), including our most recent annual report on Form 10-K and quarterly report on Form 10-Q, and registration statement on Form S-4.

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.