KANA and IBM to Bring Next-Generation Customer Service Solution to Market

KANA Software, Inc. (OTCBB:KANA), a world leader in multi-channel customer service solutions, and IBM announced a major milestone in the rollout of their Service Experience Management (SEM) strategy, first announced in 2008. Under an OEM agreement with IBM, KANA has completed the integration of IBM’s Service Oriented Architecture ( SOA ) Foundation and DB2 database software into its core Service Experience Management solution, KANA Service™. Expanding on the traditional OEM model, IBM is offering Independent Software Vendors (ISVs) such as KANA additional support beyond that of a typical OEM agreement by providing sales force alignment, technical integration, support in reducing development cost, and quicker time to value for joint customers.

As part of this strategic relationship, KANA solutions are standardized and optimized on IBM hardware and software to offer the highest levels of performance and ease of management. The new solution will enable companies to design and deliver ideal service experiences that drive customer retention and cost savings. KANA Service is scheduled for release in the second quarter of 2009.

KANA Service is designed for companies that must deliver superior customer service in the face of limited resources, increased competition, and constant business change. KANA Service enables organizations to easily deliver the ideal Service Experience based on customer profile, business context, and cost constraints. The solution gives customer service executives unprecedented control over the end-to-end Service Experience — enabling them to adapt to change in minutes, not months, and make customer service a strategic differentiator for their business.

KANA Service is built on IBM’s market-leading SOA and Information Management foundation, which breaks down traditional barriers to integration. IBM’s SOA foundation puts an end to painful point-to-point integrations, enabling “information on-demand” by simply connecting applications once to the middleware layer.

Rob Thomas, IBM’s Worldwide Vice President of Business Development for Information Management, said, “KANA and IBM have worked closely over the past year to develop a new Service Experience Management solution, combining the latest customer service capabilities from KANA with market-leading SOA and Information Management middleware from IBM, along with a joint go-to-market plan. Our partnership is a model of how ISVs can take advantage of IBM’s software solutions and resources.”

“In today’s economic climate, Service Experience has become the differentiating factor in highly competitive industries,” said Michael Fields, chief executive officer, KANA. “Companies need a new generation of customer service solutions that will allow them to adapt quickly to economic and competitive pressures. The KANA SEM solution incorporates IBM software and will enable companies to deliver optimized, one-to-one Service Experiences in an ever-changing business environment. We continue to work closely with IBM to bring our SEM solution to market in the second quarter of 2009.”

For more information, please visit www.kana.com or call 1.800.737.8738.

About KANA Software, Inc.

KANA Software, Inc. is a world leader in multi-channel customer service solutions. KANA’s solutions allow companies to deliver consistent service across all channels, including email, chat, call centers, and Web self-service, giving their customers 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 hundreds of companies worldwide, including approximately half of the Fortune 500. For more information visit www.kana.com .