Shareholder Approval Would Extend Breadth of CRM Offering With Service Resolution Management

INDIANAPOLIS,Dec. 18, 2006—M2M Holdings Inc., the privately held holding company jointly owned by Battery Ventures VI L.P. (Battery) and Thoma Cressey Equity Partners (TCEP), today announced it has signed a definitive agreement to acquire KNOVA Software Inc. (OTC Bulletin Board: KNVS), a leading provider of intelligent customer experience applications, in an all-cash transaction valued at $5.00 per share, or approximately $47 million.

The parties anticipate closing the transaction in the first calendar quarter of 2007. The closing is subject to approval by holders of a majority of KNOVA Software’s outstanding common stock and other customary regulatory and documentation closing conditions.

As with each of its past acquisitions, M2M Holdings will apply its proven integration model to the acquisition of KNOVA Software. This model ensures that each acquired product line maintains its brand identity and is enhanced, maintained, supported and sold by dedicated sales, product management, development, customer support, and professional services teams.

“The most immediate and obvious advantage of this acquisition is a broadened, more powerful customer management offering based on the individual strengths of the KNOVA and Onyx applications,” said Jeff Tognoni, CEO of M2M Holdings. “Leveraging Onyx’s leading Service-Oriented Architecture and KNOVA’s existing application programming interfaces for customer relationship management integration, the two products can be quickly integrated with one another using Web services. In a short period of time, Onyx customers will be able to seamlessly enhance their application with sophisticated tools for the contact center, as well as with powerful Web-based self-service.”

Tognoni also stressed M2M Holdings’ commitment to KNOVA’s existing customers, as well as its pursuit of new customers and markets. “KNOVA Software is a recognized leader in the service resolution management market and we believe its solution stands alone as a valuable extension to any CRM deployment. As such, we will continue to support the various CRM integrations KNOVA customers require, focusing on satisfying the customer and not on how much of the solution we provide.”

KNOVA Software President and CEO Bruce Armstrong said, “This acquisition is a win-win scenario for both companies, and we see it as the ideal opportunity to carry KNOVA Software to the next level for customers, partners and employees. With the economies of scale across multiple CRM-focused product lines, and the flexibility that comes from being privately held, we will be in a position to accelerate adoption of our service resolution management solutions.”

“We’re pleased about the opportunity to add the patented technology and talented people of KNOVA Software to the CRM side of M2M Holdings,” said Dave Tabors, general partner for Battery.

Orlando Bravo, managing partner for TCEP, positioned the acquisition as a key strategic milestone for M2M Holdings. “KNOVA is the ideal company to join the M2M Holdings family of companies following our recent entry into the CRM market. With KNOVA, M2M Holdings gains a strengthened overall customer management offering, a broadened worldwide sales and services presence, and greater coverage across numerous industry segments.”