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ServiceWare and Kana Partner to Provide Enhanced eService Suite Solution

New “Out-Of-The-Box” Integration Between ServiceWare’s eService Suite and Kana Provides Customers With Complete Service Offering

OAKMONT, PA and REDWOOD CITY, Calif. - October 3, 2000 - ServiceWare Technologies, Inc. (Nasdaq: SVCW), a leading provider of Web-based solutions for enterprise service and support, today announced a partnership agreement with Kana Communications, Inc. (Nasdaq: KANA), a leading provider of enterprise relationship management (eRM) solutions, to integrate and resell Kana’s email response solution within ServiceWare’s eService Suite. The combined solution gives ServiceWare’s customers the ability to offer end-users multiple touchpoints for eService to reduce costs, increase sales and deliver personalized service that builds customer loyalty.

“Kana is a leading eCRM provider and a strong ServiceWare partner who will assist us in providing our customers the very best service solutions. Our relationship with Kana enhances our position as a leading eService provider,” said Mark Tapling, ServiceWare president and CEO. “We feel strongly about developing and marketing integrated products, and making them available to our customers. Together, we will continue to lead the industry with advanced solutions that empower businesses to build strong business relationships over the web.”

“Our partnership with ServiceWare provides our customers with a high quality, comprehensive customer service solution,” said Michael McCloskey, CEO and Chairman, of Kana. “This alliance further promotes the flexible, scalable, Internet-architected solutions that are the hallmark of Kana's leadership in the emerging eRelationship Management market.”

ServiceWare’s eService Suite 3.0, based on ServiceWare’s patented Cognitive Processor technology, is a self-learning, self-organizing and self-maintaining eService infrastructure that empowers customers through self-service, while providing a path of escalation for questions that require personal intervention. eService Suite 3.0 delivers cost-savings by off-loading call center inquiries to Web self-service, ensures the accuracy of recommended solutions, provides support personnel with immediate access to answers for escalated inquiries and raises the bar for exceeding customer expectations about the speed and quality of online support. By employing the powerful workflow capabilities of Kana, the eService Suite will seamlessly and effectively receive and accommodate large volumes of Web- and e-mail-based inquiries. The integration will facilitate the immediate exchange of information with online customers through a combination of artificial intelligence and powerful workflow tools.

“As a global company serving the needs of customers 24 hours a day, it is essential that we have immediate access to solutions in order to exceed our clients’ expectations by helping them manage and enhance their customer relationships,” said Lloyd Linnell, CTO at Stream International Inc., a joint ServiceWare/Kana customer. “By using ServiceWare and Kana, we are able to offer a best-of-breed solution that addresses each aspect of customer service and support across all communication channels.”

About Kana Communications Inc.

Kana Communications, Inc. (NASDAQ: KANA), a leading provider of web-architected enterprise relationship management solutions (eRM), delivers a broad range of world-class, integrated e-business and interaction applications with a modular and scalable platform for both Internet and Global 2000 companies. Kana solutions deliver personal portals that offer customers, partners and the enterprise a global view of their communications and relationships. This global view includes managing the full set of communications channels such as e-mail, Web, chat, instant message, VOIP, phone and person-to-person, as well as e-business and communications applications to integrate the marketing, sales and service functions. This full-service suite enables e-businesses to compete and succeed in today's customer-driven economy. For more information about the solutions found in more than 700 companies, including 8 of the 10 most trafficked Web sites, please visit Kana at www.kana.com.

About ServiceWare

ServiceWare is a leading provider of Web-based solutions for enterprise service and support, which enable organizations to win on service in the incredibly competitive world of eBusiness. ServiceWare delivers a comprehensive, integrated family of eService solutions that enable organizations to easily provide customers with fast, accurate answers to inquiries across all touch points - Web, email, phone, fax or in-person. Based on ServiceWare’s robust knowledge base and patented Cognitive Processor™, ServiceWare’s eService Suite enables customers to build service destinations for eBusiness. RightAnswers.com, a Web-based knowledge portal, gives the end user direct access to ServiceWare’s Knowledge Channels, which provide technical support knowledge from leading technology companies including Microsoft, Novell and 3Com, and serves as a leading single source for fast, accurate IT solutions. ServiceWare customers represent a cross-section of industry leaders in the financial services, technology, manufacturing, healthcare, entertainment, education and government sectors. More than 4000 organizations have implemented ServiceWare eService solutions including Pfizer, Lucent Technologies, Marriott International, Fleet Services, Stream International, Texas Instruments, Ingram-Micro, John Deere and Bear Stearns. ServiceWare is the recipient of the prestigious CRM Excellence Award 2000, and was also named one of the “Top 100 Companies to Watch” by KM Magazine. Learn more today by visiting ServiceWare’s Web site at www.serviceware.com or call 800-572-5748.

eService Suite, Cognitive Processor and RightAnswers.com are trademarks of ServiceWare Technologies, Inc. All other trademarks are properties of their respective owners.

Statements in this press release that are not historical facts, including those statements that refer to ServiceWare’s plans, prospects, expectations, strategies, intentions, hopes and beliefs, are forward-looking statements. These forward-looking statements are based on information available to ServiceWare today, and ServiceWare assumes no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, without limitation, failure in customers’ widespread adoption and use of the ServiceWare products, fluctuations in customer demand, use of the Web as a delivery vehicle for customer support solutions, risks resulting from new product introductions and customer acceptance of new products, rapid technological change, risks associated with competition, continued growth in the use of the Internet, ServiceWare’s ability to retain and increase revenue from existing customers and to execute agreements with new customers, and ServiceWare’s ability to attract and retain qualified personnel. Risk factors are described in more detail in ServiceWare’s prospectus dated August 24, 2000, which is included as part of its Registration Statement on Form S-1, filed with the Securities and Exchange Commission.

Kana Communications, Kana and the Kana logo are trademarks of Kana Communications, Inc. All other company and product names may be trademarks of their respective owners.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995: Information in this release that involves Kana's expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. These statements include statements about Kana's strategies in the marketplace, its market position and its relationship with customers. All forward-looking statements included in this release are based upon information available to Kana as of the date of the release, 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, the successful integration of Silknet, competition, increased competition due to Kana's expanded product offering, risks associated with the evolving and varying demand for customer communication software, our ability to expand our operations, the successful integration BEI and NetDialog, acceptance of email and the Internet as a communications medium, litigation over property rights, and general economic factors. These and other factors are risks associated with our business that may affect our operating results are discussed in the Company's filings with the Securities and Exchange Commission ("SEC") including our registration statements on Form S-4 and S-1, Annual Report on Form 10-K and quarterly reports on Form 10-Q.
 
Editorial Contact:
Jennifer Donovan
The Horn Group
415-905-4029
jdonovan@horngroup.com
 
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