Business/Technology Editors

MENLO PARK, Calif.--(BUSINESS WIRE)--July 22, 2002

KANA Contact Center on WebSphere Meets High Levels of Scalability

and Significantly Decreases Costs in the Contact Center

KANA(R) (NASDAQ: KANA), a leading provider of external-facing eCRM solutions, today announced the availability of its KANA Contact Center(TM) software on IBM's WebSphere(1) Application Server. The combination of KANA's advanced Web architecture for eCRM solutions and IBM's high performance application server platform enables a high level of scalability and flexibility for contact centers today. KANA Contact Center leverages WebSphere Application Server's rich set of application services including capabilities for transaction management, availability, security, performance, and scalability, while significantly reducing the costs of maintenance and ownership in the contact center. The solution further demonstrates KANA's commitment to IBM's world-class infrastructure for e-business including existing support for DB2(1), AIX(1), WebSphere Application Server, WebSphere Commerce Suite and WebSphere MQ.

The KANA iCARE(TM) suite of modular eCRM solutions enables enterprises to establish contact centers that can scale to support growing numbers of agents, users and partners and increase interaction without affecting response time. KANA Contact Center running on IBM WebSphere Application Server provides a highly scalable, manageable and available environment on which to deploy and grow large-scale CRM applications. Results of a recent benchmark study further validate KANA Contact Center's ability to conduct high-volume, Web-based interactions. Running on IBM WebSphere Application Server, KANA Contact Center achieved 100 percent horizontal scalability with simulated loads of 12,000 concurrent agents performing over 3.6 million transactions per day, with response times consistently remaining under two seconds.

KANA Contact Center is a multi-channel customer service application for contact centers that provides complete request management, solution publishing, self-service capabilities and extranet workflow for complete, high-quality service at lower cost. With analytics integrated into the solution, KANA Contact Center optimizes the performance of a multi-channel contact center by dramatically improving agent efficiency and identifying the most profitable customer relationships. "We are pleased that KANA has selected IBM WebSphere software as the foundation for its KANA Contact Center," said Scott Hebner, director of WebSphere marketing, IBM. "By leveraging IBM WebSphere for delivering Web applications, KANA helps customers be more competitive in today's e-business arena."

Nearly 1,300 companies worldwide are using KANA next generation eCRM solutions to drive better relationships through effective, efficient interactions with customers at all points of contact (Web collaboration, phone, e-mail, live chat) and throughout the enterprise. The KANA approach to customer relationship management technology solutions combines sophisticated analytics with thin-client Web architecture to deliver extraordinary customer interactions that decrease costs and drive revenue.

"KANA Contact Center on IBM WebSphere Application Server can handle hundreds of thousands of customer interactions per hour and has proven to be one of the industry's most scalable solutions," said Bud Michael, executive vice president of products and marketing at KANA. "Like all products in the iCARE suite, KANA Contact Center is deployed on a flexible application framework that enables fast time to value and maximum return on investment."

About IBM's WebSphere Software

WebSphere is the market-leading Internet infrastructure software, or middleware, for creating, running and integrating e-business applications across a variety of computing platforms. Built on open standards such as J2EE, XML and the new Web services standards, and endowed with IBM's core strengths of reliability, scalability and security, WebSphere server software and development tools are used by tens of thousands of customers. For more information: http://www.ibm.com/websphere.

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.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995:

Information in this release that involves KANA's financial forecasts, projections, 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 profitability, cash flow, revenue, margins, expenses, growth and new business, its market position and its relationship with customers. 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, competition in our marketplace, including introduction 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 business in light of recent management changes and personnel reductions; KANA's history of losses; and trends and uncertainties in slowing 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 and 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 statement on Form S-4.

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

(1) Indicates a trademark or registered trademark of International Business Machines Corporation