KANA and Ephox Announce Strategic Partnership to Provide Customer Base with Market-Leading eCRM and Content Creation Solutions

KANA (NASDAQ: KANA), the leading provider of external-facing eCRM solutions, and Ephox, the world leaders in enterprise-wide content authoring tools, today announced that KANA has licensed Ephox EditLive!, the industrys leading solution for enterprise content creation.

KANA and Ephox Announce Strategic Partnership to Provide Customer Base with Market-Leading eCRM and Content Creation Solutions

KANA Enhances its Market-Leading eCRM Solutions with Ephox EditLive!

MENLO PARK, Calif. and SAN FRANCISCO -- August 6th, 2002 -- KANAâ (NASDAQ: KANA), the leading provider of external-facing eCRM solutions, and Ephox, the world leaders in enterprise-wide content authoring tools, today announced that KANA has licensed Ephox EditLive!, the industrys leading solution for enterprise content creation. Ephox EditLive! will be incorporated into select components of the KANA iCARE suite and will provide a browser-based content authoring tool, which will enable end users to contribute rich content to Web-based enterprise applications.

EditLive! provides a powerful, easy-to-use component that allows business users to create and edit content directly from a Web browser-based environment, such as Internet Explorer or Netscape Navigator. EditLive! can be integrated within enterprise systems for content management, knowledge management, eLearning, CRM or contact center applications. As a result of the partnership, KANA customers will benefit from the rich, Web-architected content authoring environment created by Ephox EditLive!.

"KANA is committed to providing superior, external-facing eCRM solutions that enable companies to create extraordinary customer experiences at reduced costs," said Bud Michael, executive vice president of products and marketing at KANA. "By integrating Ephox technology with the KANA iCARE suite, we are equipping our customers with market-leading eCRM solutions that will enable them to provide unprecedented levels of customer service."

The KANA iCARE suite is a comprehensive enterprise software suite made up of modular eCRM solutions, including an ultra scalable contact center solution, the industry's leading in- and out-bound e-mail management system, a robust knowledge base for self- and assisted-service and sophisticated marketing and analytics. KANAs modular approach enables companies to address specific customer service issues with a particular eCRM solution, without the need to deploy an entire suite. Additionally, KANAs Web architecture ensures the ability to integrate with additional eCRM solutions as needed.

KANA and Ephox have a natural synergy as both companies are dedicated to creating scalable and flexible Web-architected solutions that can grow with organizations to support the highest levels of demand," said Mike Wallas, CEO of Ephox. Ephox EditLive! has rapidly become the standard for content creation and KANAs decision to integrate EditLive! into its industry-leading KANA iCARE suite is a true testament to its capabilities and benefits." Ephox has recently added EditLive! for Java, a cross platform enterprise solution, to the market-leading ActiveX control licensed by Kana.

Nearly 1,300 companies worldwide using KANA next generation eCRM solutions to drive better relationships through effective, efficient interactions with customers at all points of contact (Web collaboration, phone, e-mail, live chat) and throughout the enterprise. The KANA approach to customer relationship management technology solutions combines sophisticated analytics with thin-client Web architecture to deliver extraordinary customer interactions that decrease costs and drive revenue.

About Ephox
Ephox is a global software company, with over 800 corporate clients, that specializes in browser-based web authoring products. Ephox provides sophisticated and easy to use authoring tools for many rapidly growing markets including: enterprise content management, knowledge management, contact center, customer relationship management (CRM), eLearning and other enterprise web-based applications. In addition, Ephox partners with "best of breed" software vendors in the global enterprise market.
Ephox clients include Citibank, Pfizer, Intel, Getronics, Lockheed Martin, KPMG, Deloitte Consulting, US Mint and Motorola.
For more information, please visit www.ephox.com

About KANA
KANA (NASDAQ: KANA) provides the industry's leading external-facing eCRM solutions to the largest businesses in the world, helping them to better service, market to, and understand their customers and partners, while improving results and decreasing costs in contact centers and marketing departments. Through comprehensive multi-channel customer relationship management that combines the best-in-class KANA iCARE Architecture with enterprise applications, KANA has become one of the fastest-growing providers of next generation eCRM technology. The company's customer-focused service, marketing and commerce software applications enable organizations to improve customer and partner relationships by enabling them to productively interact when, where and how they want - across all touch points, including web contact, web collaboration, e-mail, and telephone. KANA's global customer base includes Global 2000 organizations in the financial services, manufacturing, high technology, communications, retail and services markets. ADP, Chase, E*Trade, GAP, GM, Hewlett-Packard, Kodak, Sony, United Airlines, Verizon, and Williams Sonoma are among the industry leaders that have implemented KANA's eCRM solutions. KANA has locations in 22 countries worldwide, in addition to an extensive global network of channel partners. For more information, please visit www.kana.com.

Cautionary Note Regarding Forward-looking Statements Under the Private Securities Litigation Reform Act of 1995:
Information in this release that involves KANAs financial forecasts, projections, expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. These statements include statements about KANAs expected profitability, cash flow, revenue, margins, expenses, growth and new business, its market position and its relationship with customers. All forward-looking statements included in this release are based upon information available to KANA as of the date of the 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, risks associated with the merger with Broadbase and integration of the companies; risks associated with lack of market acceptance of KANAs products or services; inability to enhance and develop our products and services within budget and on schedule; competition in our marketplace, including introduction of new products or services, or reductions in prices, by competitors; inability to attract and retain qualified employees, to manage cash and expenditures or to expand sales; inability to manage business in light of recent management changes and personnel reductions; KANAs history of losses; and trends and uncertainties in slowing and uncertain economic conditions, particularly as they affect spending by our prospective customers on eCRM 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 KANAs filings with the Securities and Exchange Commission (SEC"), including our most recent annual report on Form 10-K and quarterly report on Form 10-Q, and registration statement on Form S-4.

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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.

Contacts:
Jessica Hohn   Jennifer Meyer/Karen Pantinas         Ephox Contact
KANA   PAN Communications          MIKE WALLAS
+1 508/653-4000    +1 978/474-1900          +61 7 38580100
jhohn@kana.com   kana@pancomm.com          mike@ephox.com