KANA Study Reveals Customer Demand Driving Financial Services Industry Adoption of Real-time and Web-based Customer Service

Customer Communication via the Web Results in High-Quality Interactions at Low Cost

MENLO PARK, Calif. – June 17, 2002 – KANA® (NASDAQ: KANA),
the leading provider of external-facing eCRM solutions, announced today that a recent
survey of financial service customers revealed that they demand knowledgeable and
intelligent contact center support in real-time. The survey showed that customers are
increasingly turning to the Web for e-mail and self-service support, and demanding the
same level of knowledgeable service as in phone-based interactions when seeking sensitive
information regarding their personal finances.

The study, sponsored by KANA, compared customer service
across a range of industries. Results showed that particularly within the financial
services industry, customers demand their contact center representatives be
highly-educated in the specifics of their accounts, and can quickly and effectively answer
questions and respond to customer demands, whether on the phone or via Web-based interaction.

Key findings related to customer care in the financial services industry include:

Nearly all respondents seek real-time answers, regardless
of the communication channel. 47 percent of the respondents would prefer to communicate
with the organization via Web self-service. 35 percent of respondents already communicate
via Web self-service, second only to the phone as the most popular communication channel.
Although customers still rely on phone-based communication more than any other single
channel, Web-based interaction (incorporating e-mail, Web self-service and chat) now
represents more than half of all communications between customers and the industry.

While the phone remains a top method of communication for
customers within the industry, Web self-service is rapidly growing in popularity and
represents more than one third of customer communications, positioning the industry as one
of the leaders in adoption of the solution. By empowering customers to easily find
information via the Web, financial services industry leaders that have implemented
self-service and e-mail management are not only moving ahead of this industry trend but
are also significantly reducing the costs associated with their contact centers by serving
customers via these low cost channels.

“Customers in the financial services industry are
demanding personalized and intelligent service, as they deal with issues related to their
personal finances,” said Bud Michael, executive vice president of products and
marketing for KANA. “This study shows that customers are now demanding this
high-level of service across multiple touch points. By integrating KANA’s modular
eCRM solutions, leaders in this cutting-edge industry have been able to provide superior
levels of service on a flexible application framework that enables fast time to value and
maximum return on investment.”

The KANA iCARE™ suite is the industry’s only complete
and fully integrated eCRM solution on the market today. A comprehensive enterprise
software suite, KANA iCARE includes an ultra scalable contact center solution, 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.

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 (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.