New KANA Express Suite Gives Mid-Market Companies the Power to Improve Customer Service While Reducing Costs

Menlo Park, Calif. — August 9, 2005 – KANA Software, Inc. (NASDAQ:KANAE), a leading provider of Service Resolution Management (SRM) solutions, today unveiled its eService Suite of Express products for the mid-market. The first offerings, KANA Response Express and KANA Response Live Express, will leverage KANA’s proven and award-winning email response management and Web collaboration technologies. The KANA eService Suite of Express products will be available in both On Demand and premise versions and are highly scalable to meet the growing needs of mid-market companies.

In conjunction with the new offerings, KANA also announced today its new strategic partnership with Enterico, an IBM value-added reseller division of Continental Resources Inc, in the Northeast, New York, Mid- Atlantic and Midwest US. A recent Forrester reporter entitled �Software and Services in the SMB Market, Forrester Research, Inc., July 2005�, reports that �overall, 2005 will be a stronger year for the SMB software and services market than 2004.� Additionally, the report mentions that hosted applications will gain traction, with 49% of SMBs considering the hosting option when making a software purchase.

KANA has anticipated the specific needs of mid-market companies by offering hosted and on-premise solutions. Response Express brings the company’s robust email response management technology in a version which yields faster implementation times and rich functionality without the complexity needed in a larger enterprise company. The result is a cost efficient solution which provides rapid response times to customer inquiries. KANA Response Express includes:

Automatic skill-based routing which ensures each email is correctly directed to the most capable agent; Auto-response for common inquiries which are triggered immediately for agent approval; Automated and consistent responses to incoming customer service inquiries via email; Scalable architecture to grow with the company.

With KANA Response Live Express, agents can assist customers in real-time via chat and Web page co-browsing allowing for automatic resolution of customer inquiries. KANA Response Live Express includes:

Multiple chat and co-browse sessions enabling contact center agents to interact simultaneously with multiple customers for both text chat and co-browse; Security features allowing agents and customers to dynamically share Web pages and interact on Web-based forms, even on secure sections of Web sites; Collaboration, tracking and monitoring tools for smooth, efficient escalations and intra-agent collaborative resolution.

“It is apparent that mid-market companies are in desperate need of service resolution management solutions with a low cost of ownership,” said Guy Hilbert, vice president of mid-market strategy at KANA. “We are fulfilling this need by providing world-class email and Web collaboration customer service software with rich features and capabilities that guide agents toward a rapid resolution allowing for increased customer satisfaction while decreasing costs.”

About Enterico

Enterico is a systems and network integrator with a focus on IBM solutions — from the xSeries to pSeries servers, storage, and software, businesses across the U.S. count on Enterico for complete, IBM-branded and complementary I.T. solutions designed to meet specific and exacting I.T. requirements. As a division of Continental Resources, Enterico is backed by the full resources of a company with over 40 years of business stability and offers complete staging and deployment for Unix, Linux, and Windows-based IBM systems as well as a host of professional services. For more information visit www.enterico.com.

About KANA

KANA is a leading provider of Service Resolution Management (SRM) solutions that improve customer satisfaction, reduce service costs, and increase revenues. KANA’s award-winning suite of customer service solutions for assisted, self, and proactive service enables companies to resolve customer requests quickly and accurately across multiple channels. Built on the industry’s most advanced Web architecture, KANA’s solutions are in use at approximately half of the world’s largest 100 companies. For more information visit www.kana.com.