KANA enhanced Social CRM Capabilities of KANA 10 Through Baynote’s Collective Intelligence Platform

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Agreement Brings Predictive Analytics to KANA’s Flagship Product, Enables More Personal and Relevant Service Experiences

Las Vegas, Nev. – October 20, 2009 – KANA Software, Inc. (OTCBB: KANA.OB), a world leader in innovative customer service solutions, today announced that it has enhanced the social CRM capabilities of KANA 10 , the company’s service experience management (SEM ) platform. As part of this enhancement, KANA has entered into an OEM agreement with Baynote. This agreement integrates Baynote’s Collective Intelligence PlatformT (CIPT) with KANA 10 to provide companies with predictive analytics based on the implicit patterns of customers visiting their websites.

Social CRM employs the wisdom of crowds to improve service delivery. As customers search, shop, browse and work in forums, that information found to be most pertinent can be used to drive success for those that follow. The integration of Baynote CIP and KANA 10 allows KANA’s clients to capture and analyze customer experiences, and then to use that information to quickly enhance the service experience. The combined platform allows the enterprise to automatically change, reprioritize and improve information presented to a customer based on the collective input and insight of the crowd.

Specifically, KANA 10’s new collective intelligence capabilities can be used to: a. assist agents in intelligently navigating complex processes; b. optimize cross-selling and up-selling offers; c. enhance search results ranking based on common search patterns; and d. build communities of customers with similar interests and orientations.

“We have taken a unique approach to helping companies instantly capture and act on customer sentiment, which aides other like-minded users in meeting their needs,” said Baynote CEO Jack Jia. “There is a natural synergy between the Baynote CIP and KANA 10, since both solutions leverage the most relevant information to increase service efficiency and overall customer satisfaction.”

The Baynote CIP allows businesses to deploy personalized on-site recommendations and social search for increasing online revenues, conversions and engagement. It was recently honored by KMWorld as a 2009 Trend-Setting Product of the Year. Launched in June 2009, KANA 10, the industry’s first SEM platform, manages the entire customer service experience. It is built upon IBM’s service-oriented architecture (SOA) frameworks and gives major corporations and institutions the control needed to help ensure their customers receive exceptional service through a wide variety of channels.

“KANA 10 delivers total control of the service experience to service managers, and Baynote’s Collective Intelligence Platform plays an important role in helping provide that control. By allowing companies to leverage collaborative knowledge, KANA 10 gives service managers the evidence they need to make informed decisions when establishing processes and workflows,” said Michael Fields, KANA’s CEO. “KANA 10 was built on an IBM SOA platform, and it has enabled us to quickly integrate best-of-breed solutions like Baynote’s CIP to meet our customers’ rapidly evolving needs.”

# # # About Baynote

Launched in 2006, Baynote’s Collective Intelligence PlatformT delivers on-demand recommendation technology and social search. Baynote’s SaaS solutions are easy to implement on top of existing infrastructure that increases online revenue, leads, and impressions. Baynote delivers billions of recommendations each month to hundreds of leading media, enterprise and e-commerce companies, including 14 of the Internet Retailer Top 500. Customers include Expedia, Intuit, Motorola, NASA, Symantec, and Urban Outfitters. For more information, please visit www.baynote.com.

About KANA Software, Inc.

KANA Software, Inc. is a world leader in innovative 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 50. For more information, please visit www.kana.com or call 1-800-737-8738.

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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