KANA Supports British Inland Revenue's Online Tax Return Services; Landmark Public Sector eCRM Implementation To Increase Efficiency of UK Tax Returns

Business Wire,  July 28, 2003  

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Business Editors/High-Tech Writers

MENLO PARK, Calif.--(BUSINESS WIRE)--July 28, 2003

KANA(R) (NASDAQ: KANA), a leading provider of knowledge-powered customer service applications, today announced that the United Kingdom's Inland Revenue (IR) department has implemented KANA Response(TM) software and KANA IQ(TM) software to provide taxpayers with essential support through online channels and over the telephone.

With KANA, Inland Revenue provides taxpayers with the highest level of support, either in writing or over the telephone, even at the busiest times. The combined implementation of KANA Response e-mail management software and the KANA IQ knowledge base for self- and assisted-service provides a scalable and flexible platform that serves two functions. The solution provides taxpayers with e-mail support while filing tax returns online and arms the Inland Revenue's customer services staff with access to the knowledge they need to answer detailed tax queries at the call center.

"Successful e-government initiatives involve more than just offering services online, they need to be easy to use so the public adapts to it quickly. KANA helps us provide easy-access, full-time online assistance when people need it," said Barry Glassberg, e-services director from Inland Revenue. "Filing a tax return, whether online or on paper, can be a complicated business. Our goal is to make it as easy, straightforward and fast as possible."

KANA Response, the world's-leading inbound e-mail management system, analyzes the content of every e-mail query received and automatically forwards them to the appropriate tax experts who can most effectively handle each question. With the help of KANA's knowledge-powered customer service applications, Inland Revenue can quickly provide complete answers to each question. In addition to providing better customer service, IR's online tax return system has become a cost-effective solution that also frees IR call center specialists to spend more time resolving complicated questions.

"KANA has seen an increase in the demand for effective e-government services over the last few years from governments in North America and around the world," said Tom Doyle, president of KANA. "KANA has responded to this demand by providing vertical solutions that enable governments at all levels - federal, state and local - to provide the most up-to-date information for delivering the best possible constituent experience in seeking information from the respective government bodies. The Inland Revenue scenario is a perfect example of how KANA is delivering solutions for better service in the public sector."

KANA's industry-specific applications and customizations address the particular needs of Global 2000 organizations in these markets, giving businesses a competitive advantage and increasing their ability to service, market to and sell to 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 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. These statements include statements about KANA's expected revenue, operating results, EBITDA, cash flows, long-term success, new business and market position. 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.