KANA Forms Financial Services Vertical Sales Team and Announces New Hires and Promotions within Worldwide Sales Organization (email this article)

MENLO PARK, Calif. - September 11, 2006 - KANA Software (Company Profile, Past Stories, Case Studies), Inc. (Pinksheets: KANA.PK), a world leader in multi-channel customer service, today announced a series of significant organizational changes in its global sales and service operations. The changes illustrate the unprecedented demand KANA is experiencing for its industry-leading multi-channel customer service solutions, and will enable the company to accelerate its revenue growth and meet aggressive sales targets worldwide.

Formation of Global Financial Services Sales Team In order to build upon its tremendous growth and customer adoption within the financial services market, KANA has established a global financial services vertical sales team.

Daniel Turano, a seasoned veteran, joins KANA as the newly appointed Vice President of Global Financial Services and will work to build a sales team that is focused specifically on financial services accounts worldwide. Mr. Turano has been in the software business for over 25 years and has a broad background in technology having worked at some of the most successful software companies including Oracle, Clearcross Corporation, and Siebel Systems Corporation. Mr. Turano has managed all aspects of an organization ranging from sales, sales support, business development, professional services, marketing, finance, and engineering.

As part of Mr. Turano's expanding financial services group, Lindsay McEwan has joined KANA as the regional sales manager for financial services in the United Kingdom, bringing ten years of direct sales and management experience within the investment banking, retail and capital markets vertical along with senior relationships with large financial institutions. For the past four years he was a key member of the financial services team at Oracle Corporation, having served as Global Account Director, Overlay Specialist and most recently Director of Financial Services Solutions EMEA.

"As a strategic alliance partner, we are very pleased and excited about KANA's new financial services initiative. With KANA's increased focus and investment in Financial Services, our joint relationship will further accelerate the delivery of market leading solutions to Financial Services organizations," said Mark Greene, Vice President, IBM Financial Services Sector.

Enhancing the Worldwide Sales Team
Bill Rowe, who joined the organization in January, will expand his current role with a promotion to Senior Vice President of Worldwide Sales and Service. Mr. Rowe has been responsible for KANA's sales and professional services operations in the Americas region and will now expand that role to include Europe and Asia. Alf Saggese, Senior Vice President of Sales & Service for International Operations, will report into Mr. Rowe.

Eric Ward, having quickly established himself as a sales leader since joining the company two years ago, will move into the role of Western Region Sales Director, with responsibility for expanding sales and services as well as continuing to build strong customer relationships.

Edwin Kuhn will join KANA as the Eastern Region Sales Director. Mr. Kuhn has nineteen years of sales experience, most recently having served as the Identity Management (IDM) Sales Manager at Oracle Corporation, receiving recognition as the top IDM sales representative of the year. Prior to that, Mr. Kuhn spent four years as the Mid Atlantic Area Sales Manager at Netegrity, Inc. where he was responsible for Global 2000 accounts and significantly increased revenues for his region between 2003 and 2004.

Both the Western and Eastern Region Sales Directors will report to Bill Rowe.

The market for highly scalable multi-channel customer service solutions is poised for tremendous growth. According to the Service & Support Professionals Association (SSPA), "The services and support industry reached a critical step in customer interaction channel evolution this year, with the monthly average of electronic channel (email, chat, web self-service) volume catching up to phone volume for the first time. The SSPA expects this shift toward electronic channels, or eChannels to continue, with eChannel volume bypassing phone by the end of the year." ("Multi-Channel Adoption Trends," July 18, 2006)

In order to fully capitalize on the tremendous market opportunity stemming from rapid adoption of eService channels, KANA is expanding its worldwide sales organization and by the end of 2006 the Company will have doubled its sales force over the year ended 2005. As a result of this significant organizational expansion, KANA will have the necessary resources in place to ensure excellent customer service, pursue new transactions as well as focus on cultivating cross-sell and up-sell opportunities within its extensive install base. With more than 600 customers, including approximately half of the world's 100 largest companies, KANA is in an exceptional position to fuel its continued financial growth and success through this sales approach.

"Elevating and expanding a worldwide sales team is an exciting initiative for any company. KANA has seen a substantial increase in demand for its multi-channel customer service solutions, especially in the financial services industry. This expansion is not only exciting but necessary for us to stay ahead of market demand as well as continue to give our customers the high levels of service and support they have come to expect," said Bill Rowe, Senior Vice President of Worldwide Sales and Service, KANA.

About KANA
KANA is a world leader in multi-channel customer service. KANA's integrated solutions allow companies to deliver consistent, managed service across all channels, including email, chat, call centers and Web self-service, so customers have the freedom to choose the service they want, how and when they want it. KANA's clients report double-digit increases in customer satisfaction, while reducing call volumes by an average of 20%. KANA's award-winning solutions are proven in more than 600 companies worldwide, including approximately half of the world's largest 100 companies. 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 include statements about KANA's customers' expected benefits and results from KANA applications. 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 SRM 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 of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.