Accel-KKR Closes Acquisition of KANA Assets and Liabilities


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Menlo Park, Calif.- December 23, 2009 – KANA Software, Inc. (OTC.BB: KANA),
a world leader in innovative customer service solutions, today announced the
closing of a transaction with an affiliate of Accel-KKR, a
technology-focused private equity firm, in which the Accel-KKR affiliate has
bought substantially all of KANA’s assets and liabilities (other than
certain specified assets and liabilities) for a cash purchase price to KANA
of approximately $40.82 million following adjustments based on closing net
working capital, net indebtedness, transaction expenses and other
adjustments described below. Of this amount, $1.96 million will be held back
in escrow for up to 14 months pending resolution of certain specified
contingencies. KANA obtained stockholder approval of the transaction today
at its stockholder meeting.

KANA’s current operating business, which includes software, services and
licensing, will operate as a privately held company under its current KANA
brand. KANA’s OTC Bulletin Board-listed entity will be renamed SWK Holdings
Corporation and will continue to be publicly traded. SWK Holdings
Corporation will hold the net cash proceeds from the transaction and more
than $400 million of net operating loss (NOLs) carry-forwards.

SWK Holdings Corporation’s strategic plan will be to enhance stockholder
value by pursuing opportunities to acquire one or more profitable
businesses. The publicly traded company will not compete with the privately
held KANA.

In the event that SWK Holdings Corporation has not invested at least half of
the proceeds of the asset sale within six months of closing the transaction,
the company anticipates soliciting the vote of stockholders on a proposal to
continue seeking acquisition candidates; and if this proposal is not
approved by stockholders, the company intends to return at least half of its
cash to stockholders at that time, through a dividend, issuer tender offer
or other distribution. The company’s stockholder rights plan, which is
triggered if a stockholder acquires more than 4.9 percent of the company’s
outstanding stock, will remain in effect to protect the company’s ability to
utilize its NOLs.

The members of KANA’s Board of Directors immediately prior to the closing
currently serve as SWK Holdings Corporation’s Board of Directors, with the
addition of Michael D. Weinberg, a consultant to Carlson Capital, L.P., a
stockholder of SWK. Mr. Weinberg and Stephanie Vinella, a continuing
director, were elected to their positions at today’s stockholder meeting.

About KANA
KANA is a world leader in multi-channel customer service. KANA’s integrated
solutions allow companies to deliver consistent, managed service across all
channels, including email, chat, call centers and Web self-service, so
customers have 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 percent.
KANA’s award-winning solutions have been proven in more than 600 companies
worldwide, including approximately half of the world’s largest 100
companies. For more information, visit

About Accel-KKR
Accel-KKR is a technology-focused private equity firm with over $1 billion
in assets under management. The firm invests primarily in software and
IT-enabled businesses well positioned for top-line and bottom-line growth.
At the core of Accel-KKR’s investment strategy is a commitment to developing
strong partnerships with the management teams of its portfolio companies and
a focus on building value through the significant resources available
through the Accel-KKR network. Accel-KKR has a particular focus on
going-private transactions, divisional buyouts of larger companies and
buyouts and recapitalizations of family-owned or closely-held private
companies. For more information, please visit

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 will likely change and we assume no obligation to update any such
forward-looking statement. These statements include statements about SWK
Holdings’ strategy to enhance stockholder value by pursuing opportunities to
acquire one or more profitable businesses. Factors that could cause or
contribute to such differences include, but are not limited to, the ability
of SWK Holdings to identify and acquire suitable acquisition candidates on
acceptable terms:. 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.

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