Optima Health Powers Member Service with KANA Response OnDemand.

KANA Response OnDemand Provides Robust ERMS Functionality at Lower Upfront Costs; Security Capabilities Help Ensure HIPAA Compliance

MENLO PARK, Calif. -- KANA Software, Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced that Virginia-based health insurance provider Optima Health has implemented KANA Response OnDemand to automate email response management. KANA's OnDemand email response management solution will bolster Optima's ability to interact with and service members via its rapidly growing email channel.

Operating through Sentara Health Plans, Inc., a service of Sentara Healthcare, Optima Health offers a collection of health insurance plans, serving more than 330,000 members throughout the state of Virginia. Prior to the KANA implementation, Optima employees manually routed and responded to email queries. As Web traffic increased, this process became inefficient and Optima decided to put a system in place to automate email response management before the growing volume of emails affected its ability to serve its members. In addition, the company needed a solution that would help ensure consistency and accuracy of responses, while also meeting the healthcare industry's stringent data privacy requirements.

Optima Health selected KANA Response OnDemand because it provided the depth of functionality to meet these needs without requiring large upfront capital outlays. KANA Response OnDemand processes inbound emails, automatically routing them to the appropriate individual or department based on keywords while also auto-suggesting answers to frequently asked questions. As a result, Optima employees can respond to member requests more efficiently and effectively, resulting in increased agent productivity and overall member satisfaction. At the same time, KANA Response OnDemand utilizes a secure VPN connection to ensure that all email communication is completely encrypted, even in the hosted environment, allowing Optima to maintain compliance with HIPAA regulations.

"KANA Response OnDemand is a comprehensive solution that allows Optima Health to provide improved customer service for our members because it is as fully-featured as on-premise software but without the hardware or software installation costs," said John Nowacek, eBusiness Manager at Optima Health. "With KANA, we have been able to get started quickly and easily with complete assurance that we can scale and adapt as our customer service needs evolve over time."

"While many companies are attracted to the Software as a Service model for its rapid implementation and lower costs, they still require the robust functionality and scalability of traditional software," said Marchai Bruchey, chief marketing officer at KANA. "Optima Health is a great example of a mid-market company that has successfully deployed proven, enterprise-class technology through the KANA OnDemand delivery model."

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 KANA's growth and success. 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.