KANA Software Delays Filing of SEC Form 10-K for the Year Ended Decemb

    Business Editors/High-Tech Editors

    MENLO PARK, Calif.--(BUSINESS WIRE)--April 15, 2005--KANA Software, Inc. (NASDAQ: KANA), a leading provider of Service Resolution Management (SRM) solutions, today announced that it has delayed the filing of its Annual Report on Form 10-K for the year ended December 31, 2004 beyond the April 15, 2005 extended due date. The delay is due to the time it takes for the Company to supply its new auditors with all the financial and tax information they need to perform their first annual audit of the Company.
    As a result of the delayed filing of its Annual Report on Form 10-K, it is anticipated that Nasdaq will place the designation "E" at the end of KANA's trading symbol. This is an administrative action by Nasdaq and KANA expects the "E" would be removed when the delayed 10-K report is filed.

    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 more than 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. 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 CRM 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, and KANA Software, KANA iCARE, KANA Contact Center, KANA IQ, KANA ResponseIQ, KANA Response, KANA Marketing, KANA iCARE Analytics and the KANA logo are trademarks of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.

--30--TM/ny*

CONTACT: KANA Software Jessica Hohn, 603-665-1306 jhohn@kana.com or Investors: Market Street Partners Carolyn Bass or Susan Coss, 415-445-3240 kana@marketstreetpartners.com or Media: PAN Communications Elise Sherman, 978-474-1900 kana@pancomm.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: SOFTWARE INTERNET E-COMMERCE SOURCE: KANA Software, Inc.

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