KANA ANNOUNCES FIRST QUARTER 2002 FINANCIAL RESULTS

KANA Meets Profitability Targets for Second Consecutive Quarter

MENLO PARK, Calif. - April 16, 2002 -KANA Software, Inc. (NASDAQ: KANA), ), the leading provider of external-facing eCRM solutions, today announced its financial results for the first quarter ended March 31, 2002.

Revenues for the quarter were $25.1 million. Pro forma net income(1) for the quarter was $406,000 or $0.02 per share, compared to a pro forma net income of $0.02 per share for the quarter ended December 31, 2001 and pro forma net loss(1) of $3.21 per share for the quarter ended March 31, 2001. Net loss for the quarter on a GAAP basis was $6.8 million or $0.32 per share, compared to a net loss of $82.27 per share for the quarter ended March 31, 2001 and a net loss of $1.30 per share for the quarter ended December 31, 2001.

While many other competitors in the CRM market are projecting that they will fall short of expectations for this quarter, KANA`s results allowed the company to meet its profitability targets for the second consecutive quarter.

"We executed and met our goals as a result of our sound business strategy and the growing market demand for Web-architected eCRM solutions," said Chuck Bay, CEO and president of KANA. "Again this quarter, KANA experienced success due to well established relationships with our strategic integration partners and our industry leading iCARE suite that delivers immediate ROI to Global 2000 organizations."

Highlights from Q1 included:

New and Existing Customer Wins: Both new and existing customers purchased KANA`s eCRM solutions during the first quarter. These organizations included American Greetings, BEA Systems, Bertlesmann, British Airways, Cincinnati Bell Long Distance, Citibank, CNET, CoreComm, Delta Air Lines, Digital River, Dutch Tax Office, EB World, EKZ, eProfile, Encyclosoft, Equant, Federated Stores, Ford Motor Company, G-Search, Hermes, Highmark, JP Morgan Chase, Kookmin Bank, Malam Systems, MatchNet, Mazda, Medtronic, MN Services, NEC, Palm, Ringo Communications, Rosenbluth International, Sogei, Telesoft, Telewest Broadband, Tiffany`s & Co., Trigon Blue Cross Blue Shield, Washington Metropolitan Transit Authority, Wehkamp and Xerox, among others.

Successful partner relationships: KANA continued to gain traction with its systems integration partners, including Accenture, CSC, IBM and KPMG. These relationships led to a series of customer engagements that were driven with partners, including: Accenture: Highmark and Trigon Blue Cross Blue Shield; CSC: Federated Stores, Medtronic and Rosenbluth Travel; IBM: British Airways, BT Cellnet, Kookmin Bank and Tiffany & Co; KPMG: CitiBank, JP Morgan Chase and Palm.

Enhanced Balance Sheet: During the first quarter, KANA raised approximately $31 million through a private placement of common stock.

Industry Honors: During the first quarter, KANA was honored with product of the year awards from both Call Center Magazine and Communications Solutions Magazine for providing outstanding eCRM solutions. KANA was also selected as one of the "Companies That Matter" in Knowledge Management by KMWord Magazine.

KANA Software, Inc., will hold its first quarter 2002 earnings conference call on Tuesday, April 16 at 1:30 p.m. (PDT)/4:30 p.m. (EDT). Investors are invited to listen to KANA`s quarterly conference call on the investor relations section of our Web site at www.kana.com. A replay of the Web cast will also be available at www.kana.com for a week following the completion of the call.

About KANA

KANA (NASDAQ: KANA) provides the industry`s leading external facing eCRM solutions to the largest businesses in the world, helping them to better service, market to, and understand their customers and partners, while improving results and decreasing costs in contact centers and marketing departments. Through comprehensive multi-channel customer relationship management that combines the best-in-class KANA iCARE Architecture with enterprise applications, KANA has become one of the fastest-growing providers of next generation eCRM technology. The company`s customer-focused service, marketing and commerce software applications enable organizations to improve customer and partner relationships by enabling them to productively interact when, where and how they want - across all touch points, including web contact, web collaboration, e-mail, and telephone. KANA`s global customer base includes Global 2000 organizations in the financial services, manufacturing, high technology, communications, retail and services markets. ADP, Chase, E*Trade, GAP, GM, Hewlett-Packard, Kodak, Sony, United Airlines, Verizon, and Williams Sonoma are among the industry leaders that have implemented KANA`s eCRM solutions. KANA has locations in 22 countries worldwide, in addition to an extensive global network of channel partners. For more information, please visit www.kana.com.

(1) Pro forma results are not a presentation in accordance with generally accepted accounting principles and assume the acquisition of Broadbase (acquired in June 2001) occurred at the beginning of each period presented and excludes amortization of intangible assets and stock-based compensation, discontinued operations, changes in accounting principles, and non-recurring charges.

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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 profitability, revenue, growth and new business, its market position and its relationships with customers and systems integrators. All forward-looking statements included in this release are based upon information available to KANA as of the date of the release, which can 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; visibility into future operating results remains limited after the first half of 2002. Factors, trends and uncertainties that could cause or contribute to such differences include, but are not limited to, slow and uncertain economic conditions, particularly as they affect spending by our prospective customers on eCRM and similar enterprise software products, 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; 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. 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, and registration statements on Forms S-3 and S-4.