KANA and TD Waterhouse UK Receive Customer Interaction Solutions Magazine's 2005 ''CRM Excellence'' Award.

MENLO PARK, Calif. -- KANA IQ Singled out for Providing Immediate Service Resolution Improvements

KANA Software, Inc. (NASDAQ: KANAE), a leading provider of Service Resolution Management (SRM) solutions, today announced that Technology Marketing Corporation (TMC(R))'s Customer Interaction Solutions(R) magazine (www.cismag.com) has named KANA IQ as a recipient of a CRM Excellence Award for 2005. TD Waterhouse UK's successful implementation of KANA IQ dramatically improved customer service within the first ten days of deployment. Customer Interaction Solutions(R) has been the premier publication in the CRM, call center and teleservices industries since 1982.

Since deploying KANA IQ in its contact center, TD Waterhouse UK, the UK's second largest discount broker, has reduced escalations to the back office team by over 15 per cent, reduced agent trade errors by 34% and reduced buy-backs by 21 per cent. In addition, the company has written over 3,500 solutions with KANA IQ, enabling agents of all skill levels to quickly and accurately resolve customer inquiries.

"KANA IQ enables us to easily share knowledge within our contact center across multiple business divisions," said Darren Hepworth, Vice President of Customer Service at TD Waterhouse UK. "This ensures greater customer and agent satisfaction as we are able to resolve inquiries very quickly. While increasing our customer satisfaction levels, it also decreases overall costs for our contact center. We are delighted to see KANA IQ, and our deployment of it, recognized with this award."

KANA IQ is a robust knowledge base that enables self-and assisted-service. The KANA IQ application can understand and react to the context of a request and automatically respond with the best service and guidance for rapid resolution of customer inquiries. KANA IQ provides organizations with flexible methods that help all users to rapidly find the right answers to reduce escalations and improve first call resolution rates through comprehensive search and retrieval methods.

"We are honored that KANA IQ received a 2005 CRM Excellence Award from TMC," said Brian Kelly, executive vice president of corporate strategy at KANA. "Because of the results experienced by customers like TD Waterhouse UK, KANA IQ is consistently recognized as one of the leading knowledge management solutions on the market. TD Waterhouse is a perfect example of how an organization can achieve significant improvements in service resolution by effectively leveraging process and knowledge within the contact center."

"Customer Interaction Solutions magazine implemented the CRM Excellence Awards six years ago as a way of commending the companies that have proven to be true CRM partners to their customers and clients. KANA has demonstrated to the editors of Customer Interaction Solutions that its products and services have substantially improved the processes of its clients' businesses by streamlining and facilitating the flow of information needed for companies to retain their most precious asset, their customers," said Nadji Tehrani, founder and chairman of TMC, publishers of Customer Interaction Solutions.

The CRM Excellence Award winners for 2005 will be published in the June and July issues of Customer Interaction Solutions magazine.

About TMC(TM)

Technology Marketing Corporation (TMC) publishes two print magazines: Customer Interaction Solutions, and Internet Telephony; five digital publications, SIP Magazine, Speech-World, WiFi Telephony Magazine, VoIP Developer, WiMAX Magazine; and the online publications TMCnet.com, Planet PDA Magazine, WiFi Revolution, Alternative Power and BiometriTech. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMC produces INTERNET TELEPHONY Conference & EXPO, The VoIP Developer Conference, Speech-World Conference, IP Contact Center Summit and The Global Call Center Outsourcing Summit. TMCnet.com publishes more than 25 topical online newsletters. For more information about TMC, visit its Web site at www.tmcnet.com.

About TD Waterhouse UK

TD Waterhouse is the UK's second biggest, and one of the world's largest discount brokers, providing investors with a broad range of brokerage, mutual fund, banking and other consumer financial products. Worldwide, TD Waterhouse currently services more than 3.3 million customer accounts and has over US $175 billion of assets under management. TD Waterhouse UK provides investors with execution-only share dealing services through its website at www.tdwaterhouse.co.uk and by phone on 0845 607 6001:

--Trading is available in Equities, Unit Trusts, Bonds and Gilts, Covered Warrants and Contracts For Difference (CFDs), with direct access to International markets;

--Commissions start from GBP 11.95 flat rate online / GBP 16.95 flat rate by phone.

About KANA

KANA is a 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.

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 KANA's customers' expected benefits and results from KANA applications. 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.