Kana Launches KANA Response On Demand.

MENLO PARK, Calif. -- Leading SRM Vendor's Second Hosted Application Provides Companies with High Volume E-Mail Response Management at Lower Cost

KANA Software, Inc. (NASDAQ: KANA), a leading provider of Service Resolution Management (SRM) solutions, today announced KANA Response On Demand, the company's second hosted SRM solution. The company is making KANA Response, an industry leading e-mail response management solution, available via a hosted model in partnership with OpSource, a leading enabler of Software as a Service (SaaS) applications. OpSource makes it possible for KANA to deliver reliable, cost-effective and scalable on demand solutions without the risk and investment in a costly service infrastructure. The new solution will effectively meet the increasing demand from both mid-market companies and large enterprises for high-volume, automated customer e-mail management solutions.

According to the Gartner, Inc. report titled, MarketScope: E-Mail Response Management Systems, 2H04 Update, Esteban Kolsky, January 6, 2005, "E-mail is the fastest-growing communication channel for customer service, especially for financial services, consumer packaged goods and insurance industries, as well as government. As the volume of e-mail increases, more and more organizations turn to e-mail response management systems (ERMS) to help them manage the inflow of customer service e-mail."

An increasing number of companies have an immediate need for hosted e-mail solutions that enable faster time to value and lower overall costs. However, hosted e-mail response management solutions traditionally have not been able to scale to the high levels of activity now required by customer service organizations. KANA is delivering KANA Response On Demand, the most scalable e-mail response management solution for customer support, to meet this critical need.

KANA Response On Demand will be integrated with KANA Response Live, the company's hosted solution for online chat. The integration of the two is part of KANA's strategy to deliver a complete SRM solution suite via the hosted model, to effectively meet the demands of companies from the mid-market to the Fortune 100.

"There is an unprecedented demand in the customer service market for hosted solutions," said Brian Kelly, executive vice president of products and marketing at KANA. "Yet, while many companies are attracted to the hosted model for its rapid implementation and lower costs, they still require the robust functionality of traditional software. KANA's hosted solutions are built upon proven technologies that can effectively meet the needs of companies of all sizes, while reducing the cost of delivering superior service."

KANA Response On Demand provides the following benefits to industries seeking e-mail response management systems that can support large numbers of messages and effectively allow for superior customer interactions:

-- Advanced routing and workflow capabilities to ensure the most appropriate agents answer e-mail based communications;

-- Automated response to frequently asked questions, reducing agent workload and customer waiting times;

-- Templates for agent response to customer inquiries, ensuring corporate messaging is adhered to;

-- Enables contact center managers to assess peak service times and staff accordingly.

KANA Response On Demand will be available on April 1, 2005.

About KANA

KANA is the 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.