KANA to Acquire eVergance.

Acquisition to expand professional services portfolio and meet growing demand for consulting and implementation services

MENLO PARK, Calif. -- KANA Software, Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced that it has entered into a definitive agreement to purchase eVergance Partners, LLC, a management consulting and systems integration firm offering end-to-end consulting services for CRM optimization, knowledge management, and Web self-service deployments. Through this acquisition, KANA will significantly expand its professional services portfolio to meet growing demand for consulting and implementation services.

Financial terms of the acquisition were not disclosed. The acquisition is expected to be accretive to KANA for 2007, and is expected to close during the second quarter of KANA's 2007 fiscal year.

"Demand for professional services to optimize and extend KANA's solutions is at an all-time high, demonstrated by our 50% year-over-year growth rate in this area," said Michael Fields, KANA CEO and Chairman of the Board. "eVergance brings a proven track record of more than 200 successful customer service engagements, as well as a history of thought leadership in the knowledge management and Web self-service space. We believe this acquisition will further realize our goal of helping companies ensure that customer service is a top line strategic business differentiator."

The acquisition is anticipated to immediately double the size of KANA's professional services team and expand the company's professional services offerings in all areas, including deployment support, customer service strategy, optimization, and managed services. eVergance will provide a new set of offerings to KANA customers that complement and extend the services currently provided by KANA and its partners. KANA customers will also be able to take advantage of eVergance's deep domain expertise in customer service technology and best practices.

For companies looking to differentiate themselves in an increasingly competitive market, providing groundbreaking customer service can be a critical growth and retention strategy. KANA and eVergance, along with their combined partner ecosystem, will provide consulting and deployment services to help companies take customer service initiatives from baseline to breakthrough levels.

"This acquisition not only benefits new KANA customers but has immense value for our existing customers as they seek to drive additional value and scalability from their KANA investments," said Marchai Bruchey, KANA's chief marketing officer. "It also benefits our partners as it doubles the resources we can provide to support their deployments, especially in specialized areas like knowledge management where demand for highly skilled experts outstrips supply."

Existing eVergance clients will also benefit from the acquisition. eVergance consultants bring a blend of operational, business, and technology expertise gained with top consulting firms and FORTUNE 50 organizations including Accenture, JPMorgan Chase, McKinsey, and Sprint. Since 2002, eVergance has delivered more than 200 successful engagements for 100 enterprises across North America and EMEA. eVergance will continue providing trusted strategy and planning services in several key verticals including telecommunications, financial services, healthcare, and technology.

"We're excited to become a part of the KANA family yet continue to work with the industry's leading software and technology providers to deliver top-notch CRM solutions," said Chad Wolf, eVergance president and co-founder. "We remain committed to offering best-in-class capabilities and support for a range of customer service solutions while working closely with KANA's professional services team and partners to deepen the service programs available to KANA customers."

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

About eVergance

eVergance is a management consulting and systems integration firm offering end-to-end consulting services for CRM optimization and Web self-service. With extensive contact center, knowledge management, and strategic planning experience, eVergance offers a practical, balanced approach that delivers exceptional results. Founded in 2002, eVergance has helped over 100 clients enhance their customer experience and deliver measurable organizational value.

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 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; 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.