6/30/03

KANA Announces Availability of KANA Service 8 for Multi-Channel Customer Support

Kurt Peters , Executive Editor

KANA’s Outsourcing Model Results in Successful, Rapid Development of J2EE and .NET Based Customer Application

MENLO PARK, Calif., June 23, 2003--KANA® (NASDAQ: KANA), a leading provider of enterprise customer support and communications applications, today announced the availability of KANA Service™ 8 software, its industry-leading application for multi-channel contact center management. To ensure rapid delivery of KANA Service 8, KANA outsourced development of the product to Accenture. With the combination of KANA’s domain knowledge and Accenture’s in depth knowledge of business applications, the application was quickly and cost effectively developed to provide support for superior customer service throughout the contact center.

“The rapid development of KANA Service 8 validates our outsourced development model,” said Chuck Bay, CEO of KANA. “By leveraging the industry expertise and vertical market knowledge of Accenture’s teams in the U.S. and India, we are able to bring outstanding customer service applications like KANA Service 8 to market faster and more cost effectively.”

KANA Service 8 helps contact centers deliver personalized, consistent service across all channels. In addition, the application provides the critical link between internal systems and customer interactions, empowering every customer service agent to respond quickly and consistently through a universal view of all relevant information. Available on both J2EE and .Net platforms, KANA Service 8 can be configured to meet specific customer service information, process, application and scalability requirements. The Web-architected, modular application easily integrates with the other applications in the KANA iCARE™ suite as well as other solutions in the enterprise.

New functionality in KANA Service 8 includes:

 Robust multi-channel interaction management and secure messaging, a key concern for healthcare organizations dealing with new HIPAA regulations and financial services companies and other organizations concerned with consumer privacy in transactions;
 Support for global access to information with capabilities for localized user interfaces, a key component for KANA’s global customer base;
 Role-based access to functionality and support for memberships and permissions to empower IT administrators within the enterprise with significantly greater ability to distribute access among business users;
 Enhanced capabilities to execute and view reports for customer service and knowledge management analysis, the ability for managers to create and schedule new reports, and the ability for all reports to be executed across various parameter-based options.

“Today’s software marketplace requires extremely fast product development and delivery schedules,” said Judy Trafas, partner in Accenture’s Communications & High Tech group. “This is something that can truly only be achieved through effective partnering. By leveraging our knowledge of the CRM application space and the vertical expertise of our developers around the world, we were able to produce technically advanced applications quickly and cost-effectively.”

KANA Service is an integral part of the KANA iCARE suite, a comprehensive enterprise software suite made up of modular eCRM applications, including an ultra-scalable contact center application, the industry’s leading in- and out-bound e-mail management system, a robust knowledge base for self- and assisted-service and sophisticated marketing and analytics. KANA’s modular approach enables companies to quickly deploy applications that increase communication and provide immediate and measurable return on investment.

“With KANA Service we already have a dynamic system for multi-channel customer service that enables us to provide the highest level of customer support from our contact centers," said Craig Webster, vice president, Systems Development at West Corporation. "KANA Service 8 could help us enhance our contact center support with multi-lingual capabilities, an important resource for global companies that rely on our services.”

KANA outsourced the development of KANA Service 8 to speed time to market of its industry-specific application, while freeing up additional resources within the organization to focus on product strategy and design and maintaining absolute customer satisfaction. The outsourcing model enables KANA to benefit from Accenture’s keen understanding of eCRM in key markets, such as financial services, high technology, telecommunications and healthcare.

KANA provides eCRM applications optimized for specific industries to drive better relationships through effective, efficient interactions with customers at all points of contact (self-service, Web collaboration, phone, e-mail, live chat) and throughout the enterprise. KANA’s industry-specific applications and customizations address the unique needs of Global 2000 organizations in these markets, giving businesses a competitive advantage and increasing their ability to service, market to and sell to their customers. Companies around the world benefit from KANA’s customer-centric approach to managing customer relationships, which combines sophisticated analytics with thin-client Web architecture to deliver extraordinary customer interactions that decrease costs and drive revenue.

About KANA

KANA (NASDAQ: KANA) provides enterprise customer support and communications applications enabling organizations to better service, market to, and understand their customers and partners. Optimized for specific vertical industries, KANA`s iCARE applications are in use at more than half of the world`s largest 100 companies. An award-winning, modular suite of eCRM applications available on J2EE and .Net, KANA iCARE applications enable customers to do business when, where and how they want, improving customer experiences while decreasing costs in contact centers and marketing departments. KANA`s partner-centric business model includes strategic relationships with the largest systems integrators in the world to support and sell KANA iCARE. 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. These statements include statements about KANA’s expected revenue, operating results, EBITDA, cash flows, long-term success, new business and market position. 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 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.

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.

Contact Information:
Jessica Hohn
KANA
508/598-3356
jhohn@kana.com

Ken Peters/Stephanie Beagan
PAN Communications for KANA
978/474-1900
kana@pancomm.com

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