KANA Named to KMWorld's ''100 Companies that Matter in Knowledge Management''; Leading Industry Publication Recognizes KANA for Demonstrating Leadership and Innovation in Knowledge Management

Business Wire, Feb 23, 2006

MENLO PARK, Calif. -- KANA Software, Inc. (Pinksheets: KANA.PK), a leading provider of service resolution management (SRM) solutions, today announced that it has been named to KMWorld magazine's list of "100 companies that Matter in Knowledge Management" in 2006. Now in its sixth year, the list identifies the organizations at the forefront of knowledge management innovation.

"The list was conceived as a way to recognize some of the organizations leading the way in the knowledge economy," said Hugh McKellar, editor-in-chief of KMWorld. "In particular, KANA warranted inclusion in our top 100 because its software continues to set a high standard for effectively leveraging knowledge management principles across customer service and support channels."

The list was compiled through discussions with knowledge management practitioners, theorists, vendors, customers, industry analysts and editors. Each company either helped to create a market, redefine one or enhance one, and all of them demonstrate the capacity for customer-driven agile innovation. The complete list of the "100 companies that Matter in Knowledge Management" will be featured in KMWorld's March 2006 issue.

"KANA is honored to be recognized by KMWorld for the second consecutive year," said Marchai Bruchey, chief marketing officer at KANA. "We remain committed to providing innovative customer service solutions that leverage rich knowledge management capabilities, enabling organizations to more quickly and accurately resolve customer inquiries and significantly improve the delivery of service across all channels."

About KMWorld

The leading information provider serving the Knowledge, Document and Content Management systems market, KMWorld informs more than 50,000 subscribers about the components and processes - and subsequent success stories - that together offer solutions for improving business performance. KMWorld is a publishing unit of Information Today, Inc.

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.

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.