Talkline Resolves Customer Communication Challenge with KANA.

MENLO PARK, Calif. -- Leading German Telecommunications Operator Realizes Customer Success with Revolutionary Service Resolution Management Solution

KANA (NASDAQ: KANA), the leading provider of Service Resolution Management (SRM) solutions, today announces the implementation of KANA Response for The Talkline Group, one of Germany's leading telecommunications operators. With KANA in place, Talkline is leading the way in telecommunications customer service practices, ensuring that its contact center agents are able to handle customer inquiries quickly and accurately with less training.

Established in 1991, The Talkline Group consists of mobile service provider, Talkline GmbH & Co. KG, and a value added service provider, Talkline ID. Prior to implementing KANA's SRM solution, The Talkline Group was responding to over 6,000 customer e-mails every month, with this number growing by 25% each month. Finding a better way to provide consistent customer service, while cutting down on the time it took to respond to each inquiry would allow the company to increase the efficiency of its call center agents.

Using KANA Response, Talkline revolutionized its approach to customer service. KANA Response was implemented quickly and ahead of schedule and led to a reduction in the response time needed to resolve customer inquiries by nine hours. As a result, Talkline can offer faster and more accurate responses to customers and resolve more inquiries through e-mail.

Because KANA Response allows agents to respond faster and with more detailed information, the Talkline Group now responds to all incoming e-mails within a few hours, in under half of the time as before. Additionally, agent productivity has risen by 90% and agent training times have been cut from five days to two. This increased productivity can be attributed to the fact that agents receive prompts regarding the most appropriate responses to send customers which resolves inquiries faster and ultimately decreases call center costs.

"We have to be vigilant - especially when it comes to customer and staff satisfaction. With an increasingly competitive telecommunications market, we had to find a partner with a solution that could improve our system and provide an enhanced level of service customers expect both now and in the future," said Ove Struck, Spokesman for Talkline Group. "KANA's Service Resolution Management solution has provided the platform from which we can continually improve the way we respond to our customers - we see it as a strategic must going forward."

"Talkline Group's adoption of Service Resolution Management is a great reassurance to its growing customer base. Providing customers with the right answers at the right time and in the right manner is critical to keeping existing customers happy and is a crucial factor in attracting new ones," said Brian Kelly, executive vice president of products and marketing at KANA. "We are delighted to have helped Talkline Group turn a customer administration challenge into a customer acquisition tool."

About Talkline

The Talkline Group, Elmshorn, is one of the leading telecommunications providers in Germany, for many years. It consists of the mobile service provider Talkline GmbH & Co. KG and the provider of telephony value-added services Talkline ID GmbH. The Talkline Group - a hundred per cent subsidiary of TDC Mobile International, Copenhagen - employs about 1,000 people and generated revenue of 898 million Euro in 2003. Founded in 1991 as a mobile telephony provider, Talkline GmbH & Co. KG attends 2.5 million mobile subscribers. Talkline ID GmbH is the most successful alternative provider of value-added services and service-hotlines in Germany. In addition, Talkline ID markets the Talkline call-by-call prefixes 01050 and 0190025.

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 eCRM 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.

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