Who: Chris Hall, VP Product Strategy, KANA, and John Ragsdale, VP Research, SSPA

What: Mr. Hall and Mr. Ragsdale will present a live webinar entitled, “Setting New Standards for Simply Smart Customer Service.” Exploring the concept of “service done right”, the two industry experts will outline strategies and best practices for defining service priorities and ultimately delivering service and support that bolsters customer satisfaction and loyalty. Additional points of discussion will include:

· Successful customer service priorities — including providing the right answer the first time, every time

· Ensuring a seamless experience across all service channels

· The new service standard: Anticipate consumer problems and turn service into sales through proactive service

· Enterprise best practices for increasing first contact resolution via email, chat, or phone

· Better utilization of resources through intelligent Web self-service

· One-on-one service channel improvements — tailoring advice, recommendations, and offers to the individual customer

When: Wednesday, March 28 at 11:00 a.m. PDT/ 2:00 p.m. EDT

Where: Register at: www.destinationcrm.com/webevents/kana/28mar2007

MENLO PARK, Calif. – March 22, 2007 – KANA Software, Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced that KANA IQ, an award-winning knowledge solution for agent-assisted and Web self-service, has been recognized as “Knowledge-Centered Support (KCS) Verified” by the Consortium for Service Innovation. KCS is a best practices methodology that is widely used in the technology industry to help businesses reduce support costs and improve service quality.

KCS provides high-tech organizations with a repeatable, sustainable model for improving service levels, increasing operational efficiency, and raising the support team’s overall value to the company. The KCS methodology has been developed over 13 years, and is continuously refined and tested by the Consortium for Service Innovation, a non-profit alliance of service and support organizations. The Consortium developed the KCS Verified program to distinguish vendors whose products meet specific best practices criteria for knowledge management.

KANA IQ underwent a rigorous testing process to achieve KCS validation. As a result, KANA is well positioned to meet the growing market demand for KCS-verified solutions that are proven in large-scale deployments, offer complete configurability, and provide a choice of deployment models – on-premise or On-Demand.

“The Consortium is pleased to have KANA Software as one of our KCS Verified Vendors,” said Greg Oxton, executive director of the Consortium. “The Verification process is thorough and challenging, and by submitting to the program, KANA has aligned itself with forward thinking service enablers that have become strategic partners with service providers to turn information into knowledge.”

KCS is a demand-driven model for knowledge management that focuses on creating knowledge as a natural by-product of the day-to-day interaction between agents and customers. Businesses that deploy solutions developed with KCS principles don’t need to predict or guess what content is important because support content is created based on authentic customer needs which are validated through actual use and improved by customer feedback.

“There is increasing market demand for KCS-verified solutions that deliver the scalability, performance and flexibility required by today’s high-tech service and support organizations,” said Marchai Bruchey, chief marketing officer at KANA. “KANA IQ clearly meets these criteria and our recent KCS certification reflects our dedication to industry best practices and to helping businesses reach their customer service and profitability goals.”

The KCS Certification is another proof point of the configurability of KANA IQ and how the solution can be easily aligned with an organization’s business processes. For high-tech support environments, KANA IQ can be configured to provide the collaborative, just-in-time publishing process supported by KCS. KANA IQ can also be configured for highly regulated industries to support structured review process and audit workflow that fulfills legal compliance requirements.

MENLO PARK, Calif. – March 12, 2007 – KANA Software, Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced that it has been named one of KMWorld magazine’s “100 Companies That Matter in Knowledge Management” for 2007.

The KMWorld 100 recognizes organizations at the forefront of knowledge management innovation. Over 1500 companies were considered for this honor, and KANA was named to the list for the third consecutive year. KMWorld also recently recognized KANA with a “KM Reality Award” for customer deployments that deliver dramatic, quantifiable business results.

“Companies on the list clearly demonstrate their contribution to creating, redefining or enhancing the market,” said Hugh McKellar, editor-in-chief of KMWorld. “KANA has been exemplary in enabling companies to deliver outstanding customer service. KANA illustrates the practical business benefits that can be attained using innovative applications of knowledge management. “

Now in its seventh year, the KMWorld 100 is compiled through discussions with knowledge management practitioners, theorists, vendors, customers, industry analysts and editors. The complete list of the “100 Companies That Matter in Knowledge Management” is featured in KMWorld’s March 2007 issue.

“KANA is thrilled to be recognized by KMWorld for the third consecutive year, as it reflects our ongoing commitment to helping businesses improve customer loyalty, deliver productivity gains, and increase profitability,” said Marchai Bruchey, chief marketing officer at KANA. “Customers using KANA solutions are reporting double-digit increases in customer satisfaction and a twenty percent reduction in call volumes. We remain committed to exceeding the expectations our customers while helping them do likewise.”

MENLO PARK, Calif. March 1, 2007 – KANA Software, Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced financial results for the fourth quarter and year ended December 31, 2006.

Q4 and 2006 Financial Highlights:

• KANA’s total revenues for the fourth quarter of 2006 were $14.9 million, an increase of 30% from the fourth quarter of 2005.
• License revenue for the fourth quarter of 2006 was $6.0 million, an increase of 131% from the fourth quarter of 2005.
• The Company ended the quarter with cash of $5.7 million on December 31, 2006, up 23% from $4.6 million on September 30, 2006.
• KANA’s total revenues for the year ended December 31, 2006 were $54.0 million, an increase of 25% over the prior year.
• 2006 license revenue rose to $19.1 million, an increase of 136% year-over-year.

“We are extremely pleased with our fourth quarter and year-end results, as they reflect our focus on business fundamentals and meeting customer demand,” said Michael Fields, chief executive officer of KANA. “KANA operated profitably for 2006 on a non-GAAP basis. Moreover, the fourth quarter was the largest license revenue quarter that the Company has had since 2003. Looking forward to 2007, we continue to be optimistic about the market demand for multi-channel customer service solutions as well as the strong sales pipeline and team we are building here at KANA. We believe that the Company is well positioned for continued growth fueled by market leadership, financial discipline and successful execution.”

The Company reported a net loss in accordance with accounting principles generally accepted in the United States (GAAP) of $1.4 million, or $(0.04) per share, for the quarter ended December 31, 2006 versus a GAAP net loss of $1.0 million, or $(0.03) per share, for the quarter ended December 31, 2005. The Company reported a GAAP net loss of $1.8 million, or $(0.05) per share, for the year ended December 31, 2006 versus a GAAP net loss of $18.0 million, or $(0.58) per share, for the year ended December 31, 2005.

For the fourth quarter 2006, KANA reported non-GAAP net loss of $60,000, or $0.00 per share, as compared to a non-GAAP net loss of $1.0 million, or $ (0.03) per share, for the quarter ended December 31, 2005. KANA’s fourth quarter 2006 non-GAAP net loss of $60,000 was calculated by adjusting KANA’s GAAP net loss of $1.4 million by adding back accounting charges for stock-based compensation expense measured in accordance with SFAS 123R, and restructuring expense.

KANA’s non-GAAP net income for the year ended December 31, 2006 was $3.6 million, or $0.10 per diluted share, as compared to a net loss of $11.5 million, or $(0.37) per share, for the year ended December 31, 2005. KANA’s year ended 2006 and 2005 non-GAAP net income (loss) were calculated by adjusting the Company’s GAAP net loss by adding back certain accounting charges: impairment of internal-use software, stock-based compensation expense measured in accordance with SFAS 123R, registration rights penalty paid in common stock, warrant liability expense (income) and restructuring expense.

Company Highlights

• In Q4, the Company closed 60 license transactions – the largest number reported in three years. New and existing customers that purchased KANA solutions in 2006 include AT&T-Cingular, British Sky Broadcasting, Federated Stores, HSBC, KLM, Priceline, Shurgard,TD Waterhouse, Verizon Wireless, and Xerox.

• KANA received 11 industry awards in 2006, including the coveted leadership position in the 2006 Forrester Wave report for eService.

• In 2006, KANA established vertical sales teams to focus on global Financial Services and the Federal Government. These sales teams will work closely with the company’s strategic alliance partners to further penetrate these markets.

• In Q4, KANA added seasoned sales managers to the strong team that it had been building throughout the year, increasing the company’s sales force by 25%.

• During the year, KANA exceeded its annual IBM quota by 183%, achieving the number one position within its alliances category.

• In Q4, KANA’s shares of common stock began trading on the OTC Bulletin Board (OTCBB) under the ticker symbol KANA.OB. The upgrade to the OTC Bulletin Board reflected the resumption of current reporting requirements, as well as related operational efficiencies resulting from the Company’s efforts to streamline the organization.

Investor Conference Call Information:

KANA’s management team will host a conference call today at 4:30PM EST (1:30PM PST) where they will discuss the Company’s reported financial results and financial outlook. The live webcast can be accessed by visiting the investor relations section of KANA’s website at www.kana.com.

The Company will report a GAAP net loss of $1.8 million, or $(0.05) per share, for the year ended December 31, 2006 as compared to $18.0 million, or $(0.58) per share, for the year ended December 31, 2005.

KANA’s non-GAAP net income for the year ended December 31, 2006 will be $3.6 million, or $0.10 per diluted share, as compared to a net loss of $11.5 million, or $(0.37) per share, for the year ended December 31, 2005. Non-GAAP adjustments to GAAP net loss for the years ended 2005 and 2006 are calculated by adding back certain accounting charges: impairment of internal-use software of $6.3 million and $0, respectively in 2005 and 2006; stock-based compensation expense of $38,000 in 2005 and stock-based compensation measured in accordance with SFAS 123R of $2.8 million in 2006; registration rights penalty paid in common stock of $0 and $1.2 million; warrant liability (benefit) expense of ($331,000) and $774,000; and restructuring expense of $468,000 and $703,000.

KANA requires additional time to review the allocation of certain quarterly expense items within 2006. Full year 2006 results as reported above are not expected to change. The review of these items could lead to improvements in previously reported quarterly GAAP net income (loss).

“We felt it best to re-schedule today’s conference call until the fourth quarter 2006 detailed financial results can be made available,” said Michael Fields, chief executive officer of KANA. “However, we are extremely pleased with 2006 year-end results, as they reflect KANA’s improving business fundamentals. We look forward to disclosing additional details regarding our progress next week.”

KANA’s management team will host a conference call on Thursday, March 1, 2007 at 4:30 PM EST (1:30 PM PST) where they will discuss the Company’s fourth quarter and fiscal 2006 year-end financial results and financial outlook. The live webcast can be accessed by visiting the investor relations section of KANA’s website at www.kana.com.

Who: Jonathan Spira, CEO and chief analyst at Basex, and Chris Hall, vice president of product strategy at KANA.

What: Mr. Spira and Mr. Hall will present during a live Webinar entitled, “Your Customers Have Questions: Give them intelligent solutions across all channels.” Many companies are not enabling their service channels to provide intelligent service. The result? Frustrated customers, poor service levels, and lost business. Studies show that resolving issues on first contact is the number one source of customer satisfaction.

Mr. Spira will begin the Webinar by describing issues companies face as they strive to improve customer satisfaction levels, and will be followed by Mr. Hall’s presentation on how to best utilize intelligence across all channels in order to achieve first contact resolution.

The two industry experts will also share insight and best practices for:

- Resolving customer inquiries on the first try over the phone, web, or email
- Leveraging intelligence to empower customers through self-service and email
- Using that same intelligence in the call center to empower agents with customer history and rapid answer capabilities
- Improving service channel options while lowering service costs

When: Tuesday, February 20 at 11:00 a.m. PT/ 2:00 p.m. ET

Where: Register at: www.kmworld.com/webinars/register.aspx?eventid=202.

MENLO PARK, Calif., February 12, 2007 – KANA Software, Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced that KANA IQ was singled out by the editors of SearchCRM.com as the “2006 Product of the Year” in the Online Self-Service Category. Presented by the editors of TechTarget’s Enterprise Applications Media Group, the award is further validation of KANA IQ’s proven ability to power successful Web self-service interactions while offering seamless escalation to assisted-service channels, including email, chat and call centers.

The SearchCRM.com editorial staff, in conjunction with a team of users, industry experts, analysts, and consultants, judged the awards based on product innovation, performance, ease of integration with existing environments, ease of use/manageability, functionality and value. Judges selected the eight “Products of the Year” from among enterprise CRM-related products introduced, upgraded, and shipped between September 30, 2005 and October 1, 2006.

According to the 2006 Products of the Year feature story on SearchCRM.com, KANA IQ’s “maturity plus functionality made it a winner in the eyes of our judges.” The story goes on to say that “KANA IQ not only offers a compelling knowledgebase, but their problem diagnostics and real-time data retrieval capabilities allow them to answer any question, from complex technical support issues to queries about account balances, ship dates or any other back office accounting or inventory data. And, being part of KANA’s best-in-class multi-channel suite, customers can automatically move from unassisted to assisted support via click to chat, or by proactive chat identifying customers needing help to find the answer online.”

KANA IQ is an award-winning knowledgebase for agent-assisted and Web self-service that is available through the OnDemand and on-premise deployment models. The solution delivers on-demand advice that intelligently guides users of all skill levels through the process of diagnosing the inquiry and finding the right answer. KANA IQ is tightly integrated with the KANA multi-channel suite, including KANA Response for email response management; KANA Contact Center, the company’s universal agent desktop; and KANA Response Live for live chat and Web collaboration. As a result, agents can launch KANA IQ from any KANA application, quickly locate information in the knowledgebase and then leverage the solution in an email, chat session or telephone conversation. By leveraging a single source of knowledge to power all customer interactions, KANA IQ enables companies to provide more accurate, consistent and timely service with minimal keystrokes.

“SearchCRM.com has a keen understanding of the evolving market needs for customer service,” said Marchai Bruchey, chief marketing officer at KANA. “The judges’ selection of KANA IQ as one of the Products of the Year is further validation of its ability to power intelligent interactions across channels, including email, chat, call centers and Web self-service, enabling business to foster customer satisfaction and loyalty.”

MENLO PARK, Calif. – February 5, 2007 — KANA Software Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced that KANA IQ has received a 2006 Product of the Year Award from Technology Marketing Corporation’s (TMC®) Customer Inter@ction Solutions® magazine (www.cismag.com). Customer Inter@ction Solutions has been the leading publication covering CRM, call centers and teleservices since 1982.

“We’re thrilled to receive a Product of the Year Award from Customer Inter@ction Solutions magazine for the eighth consecutive year,” said Marchai Bruchey, chief marketing officer of KANA. “The acknowledgement is further validation of our commitment to product innovation and delivering solutions that provide our customers with inherent business value. Recognizing that an integrated knowledgebase is essential to delivering accurate, consistent and timely service across channels, leading companies continue to adopt KANA IQ as part of their multi-channel customer service strategies.”

KANA IQ is an award-winning knowledgebase solution for agent-assisted and Web self-service that is available through the OnDemand and on-premise deployment models. KANA IQ delivers a guided knowledge approach that dramatically reduces the time it takes to answer inquiries. The solution delivers on-demand advice that intelligently guides users through the process of diagnosing the inquiry and determining the right answer, providing agents and customers with the tools to make finding the right answer quick and easy.

KANA IQ is tightly integrated with the KANA multi-channel suite, including KANA Response, KANA’s industry-leading email response management application; KANA Contact Center, the company’s universal agent desktop; and KANA Response Live, its comprehensive solution for live chat and Web collaboration. As a result, agents can launch KANA IQ from any KANA application, quickly locate the necessary information in the knowledgebase and then insert the solution into an email or chat session or use it during a phone conversation. By leveraging a single source of knowledge to power all customer interactions, KANA IQ enables companies to provide more accurate, consistent and timely service with minimal keystrokes.

“Customer Inter@ction Solutions is proud to bestow KANA with a 2006 Product of the Year Award. Each year, Customer Inter@ction Solutions magazine recognizes companies that have demonstrated excellence in technological advancement and application refinements,” said Nadji Tehrani, Executive Group Publisher and Editor-in-Chief of Customer Inter@ction Solutions. “KANA has proven they are committed to quality and excellence in solutions that benefit the customer experience as well as ROI for the companies that use them. I am pleased to honor their hard work and accomplishments and look forward to more innovative solutions from them in the future.”

The Product of the Year Award winners for 2006 will be featured in the January and February 2006 issues of Customer Inter@ction Solutions magazine.

For more information about the 2006 Product of the Year Awards or any of the TMC media properties, please visit www.tmcnet.com.

MENLO PARK, Calif. – January 22, 2007 – KANA Software Inc. (OTCBB: KANA.OB), a world leader in multi-channel customer service, today announced the availability of a fully integrated suite of OnDemand customer service solutions. Based on KANA’s award-winning on-premise applications, the KANA OnDemand suite delivers the enterprise-class security, reliability and performance required for high-volume customer service operations, as well as the traditional benefits of a Software as a Service (SaaS) solution, including lower total cost of ownership, more rapid implementation and faster time-to-value. As a result, organizations can deliver consistent, managed service across all channels, including email, chat, call center and Web self-service, more efficiently and cost effectively than ever before.

KANA’s multi-channel customer service solutions have repeatedly proven their ability to help companies significantly improve service quality, reduce costs and generate additional revenue from effective service and support interactions. To meet the growing demand for these market-leading capabilities in a SaaS delivery model, KANA introduced versions of KANA Response and KANA Response Live in 2005 in this model. Based on the success of this initial launch, and significant customer adoption, KANA is now bringing to market a full OnDemand suite of integrated multi-channel customer service solutions, including KANA Response OnDemand for high-volume email response management and case management; KANA Response Live OnDemand for live chat, co-browse and Web collaboration; and KANA IQ OnDemand, a knowledgebase solution for agent-assisted and Web self-service.

“While many companies are attracted to the SaaS model for its rapid implementation and lower costs, they still require the robust functionality and scalability of traditional software,” said Michael Fields, chief executive officer of KANA. “KANA’s OnDemand suite is built upon proven technologies that can effectively meet the needs of companies of all sizes, while reducing the cost and resources needed to deliver superior service and support across channels. In the coming months and years, we anticipate that the reputation and performance of our solutions will propel KANA to the forefront of the OnDemand customer service market.”

KANA also announced today that Virginia-based health insurance provider Optima Health is leveraging KANA Response OnDemand to more effectively interact with and service members via its rapidly growing email channel. Optima Health selected KANA Response OnDemand because it provided the depth of functionality to meet the company’s needs, including stringent data security requirements, without requiring large upfront capital outlays.

KANA provides access to the KANA OnDemand suite through robust, secure, tier one hosting facilities. These facilities are designed to manage multi-channel customer interactions and are equipped to deliver the security, reliability and performance required for high-volume customer service operations. KANA’s hosting facility has full network and power redundancy and is built to withstand most natural disasters. Moreover, the KANA OnDemand suite has built-in failover inherit within the applications. In the event that a server fails, the application will automatically failover to a backup server to ensure continued uptime.

With KANA OnDemand, businesses have complete flexibility to segregate data within one department or allow full cross departmental and company-wide data access within the same installation. This provides a true 360 degree view of a customer across multiple departments within an organization. In addition, KANA enables businesses to get started quickly and cost-effectively with KANA OnDemand while providing the ability to migrate to on-premise software at any time, as business needs and customer service requirements evolve. KANA leverages industry standard and accepted third party database software to move and port data from KANA OnDemand to the on-premise environment, ensuring seamless data migration.

The KANA OnDemand suite is available immediately. Pricing details are available upon request.