Largest Companies in the World Deliver Answers Faster and More Accurately with KANA SRM

MENLO PARK, Calif. April 21, 2004 -- KANAâ (NASDAQ: KANA), a leading provider of knowledge-powered customer service applications, today announced its service resolution management (SRM) solutions to address the key pain points in the customer service process. KANA’s SRM solutions help companies reduce the costs associated with resolving customer issues through assisted and self-service applications.

Service resolution, the process of resolving customer issues or requests, accounts for 80 percent of the time and cost associated with providing customer service. This is due to a number of factors which include disparate information, agent turnover and a lack of repeatable guiding processes. Agents must diagnose the customer problem, research the answer and then deliver the solution to the customer. KANA’s SRM solutions optimize the resolution process resulting in increased agent efficiency, which drives customer satisfaction and an overall reduction in costs. These new solutions include KANA’s recently announced applications for the branch banking, retail banking and telecommunications industries.

“In a business with growing and unpredictable demands, the key to our success is maintaining the quality of our customer service,” said Darren Hepworth, vice president Customer Contact Centre at TD Waterhouse, UK. “KANA's Service Resolution Management solution helps us to quickly and accurately deliver the answers our customers need, ensuring that they can concentrate on becoming successful investors.”

KANA Service Resolution Management includes:

• KANA Self-Service applications provide customers a sense of control, by allowing them to service themselves, with powerful, consistent, multi-channel tools that provide answers when, where, and how they want. The Service Portal allows customers to manage their relationship with the enterprise. KANA IQ software can be accessed directly by customers looking for answers to their questions, while KANA Response software and KANA Response Live software provide an easy means of escalation, if needed.
  
• KANA Assisted Service ensures that service agents always have current and consistent knowledge at their fingertips, as well as effective means of communicating and interacting with customers. With KANA Assisted Service, enterprises can reduce agent training time and dramatically increase agent productivity.
  
• KANA Proactive Service allows for the planning, automating, scheduling and delivery of outbound customer service messages. This includes features such as event-driven notifications and highly personalized dynamic communications that allow a business user to easily define, model and execute proactive campaigns based on any number of trigger events, reducing or eliminating future service calls

“The next phase in CRM involves targeting the service resolution step in the customer service process,” said Mitch Kramer, senior vice president and analyst at Patricia Seybold Group. “Companies need a solution, for all their channels, which will allow for rapid resolution and accurate responsiveness on customer issues which, in turn, will build effective relationships and lower the costs of providing service.”

KANA's knowledge-powered customer service applications address the needs of Global 2000 organizations in key vertical markets, giving businesses a competitive advantage and increasing their ability to service, market to and understand their customers. Companies around the world benefit from KANA's knowledge-powered 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.

"By optimizing the resolution process, a company can dramatically reduce the overall cost of providing service while continuing to maintain superior customer interactions." said Brian Kelly, executive vice president of products at KANA. "Companies realize that the heart of a customer service transaction is the resolution process, and as a result KANA’s SRM solutions, are the next phase of any global organization’s CRM strategy.”

About TD Waterhouse
TD Waterhouse is the UK's second largest broker, providing investors with execution-only share dealing services through its website at www.tdwaterhouse.co.uk and by phone on +44 (0) 845 607 6001. It is part of the World's third largest discount broker and the Toronto Dominion Bank Financial Group.

About KANA
KANA (NASDAQ: KANA) provides knowledge-powered customer service 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. 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.

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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.

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

Andy Dear/Elise Sherman
PAN Communications
978/474-1900
kana@pancomm.com