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KANA Receives 'Positive' Rating in Gartner's E-Mail Response Systems MarketScope Vendor Report
[April 05, 2004]

KANA Receives 'Positive' Rating in Gartner's E-Mail Response Systems MarketScope Vendor Report

MENLO PARK, Calif. --(Business Wire)-- April 5, 2004 -- KANA(R) (NASDAQ: KANA), a leading provider of knowledge-powered customer service applications, today announced that it earned a 'Positive' rating in Gartner Inc.'s recent MarketScope: E-Mail Response Management Systems, research note. This rating is determined by the analysts' interaction with prospects, vendors, consultants and integrators, and in evaluating and analyzing the market as a whole.(1)

Published in March by Gartner, Inc., a premier research and advisory firm, the report analyzes and positions e-mail response vendors against the Gartner MarketScope rating framework based on the following evaluation criteria: Basic ERMS, Advanced ERMS, Knowledge and Content Management, Expandability, Open Architecture and Mindshare.

We consider our Positive rating in Gartner's E-Mail Response Management Systems MarketScope to be further confirmation of the significant impact KANA solutions have within our customer base, said Brian Kelly, executive vice president of products and marketing at KANA. Through the use of our knowledge-powered applications, organizations are able to reduce costs and deliver better, faster service resolution management through e-mail and other key channels.

An integral component of the KANA iCARE(TM) suite, KANA Response is one of the most effective and widely used e-mail management systems in the world. It provides customers with world-class, agent-assisted service with fast, high volume, intelligent, automated e-mail, Web, and instant messaging request management.

We believe that, in rating KANA as positive, Gartner is recognizing what we have known for a long time -- KANA provides the knowledge-powered applications we need to effectively meet customer expectations for fast and efficient service resolution, said Ron Rose, CIO of Priceline. KANA enables us to meet our objective of improving customer service without increasing costs in the contact center.

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.

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

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.

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.

The MarketScope is copyrighted by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

(1)MarketScope: E-Mail Response Management Systems, 1HO4, authored by Esteban Kolsky, March 1, 2004

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