KANA ANNOUNCES UP TO $55 MILLION OF NEW FUNDING

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Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995: Information in this release that involves KANA`s expectations, beliefs, hopes, plans, intentions or strategies regarding the future, are forward-looking statements that involve risks and uncertainties. These statements include statements about KANA`s expected financial position, profitability, growth and long-term success, its market position, and opportunities in its market. All forward-looking statements included in this release are based upon information available to KANA as of the date of the 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: 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; competition in our marketplace, including introduction of new products or services, or reductions in prices, by competitors; inability to attract and retain qualified employees, to manage cash and expenditures or to expand sales; inability to manage business in light of recent restructurings, management changes and personnel reductions; KANA`s history of losses; and trends and uncertainties of slow and uncertain 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 are discussed in KANA`s filings with the Securities and Exchange Commission ("SEC"), including our most recent annual report on Form 10-K and quarterly report on Form 10-Q.

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NOTE: KANA is a registered trademark, and KANA Software, KANA iCARE, KANA Contact Center, KANA IQ, KANA ResponseIQ, KANA Response, KANA Marketing, KANA iCARE Analytics and the KANA logo are trademarks of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.

Jessica Hohn
KANA
(508) 653-4000
jhohn@KANA.com

Ken Peters/Jennifer Meyer
PAN Communications
978/474-1900
kana@pancomm.com

Heather Mirjahangir
For Technology Crossover Ventures
415/856-5110
hmirjahangir@bando.com