PALO ALTO , Calif., Oct. 31 /PRNewswire/ -- Frost & Sullivan today announced that it has selected KANA Software, Inc. (OTC Pink Sheets: KANA), a world leader in multi-channel customer service, as the recipient of the 2006 Product Line Strategy Award for its robust web self- service solution and integrated multi-channel suite.

Frost & Sullivan recognized KANA with this award for responding to shifting market dynamics and customer needs with a series of major product initiatives, including the launch of KANA Response OnDemand as well as significant enhancements to its core multi-channel customer service solutions. Frost & Sullivan also recognized KANA's strategic alliances, deep penetration in its installed base of customers, and robust license revenue growth.

KANA introduced enhanced multi-lingual capabilities to KANA Response, its email response management system, which was of particular relevance for enterprises which had a large international customer base. Moreover, the addition of external search capabilities to KANA IQ helped increase the reach of content across the enterprise. This element was valuable for customers in providing timely and relevant information through search.

'Growing complexities in customer service, greater call volume, and need for solutions that enhance first call resolution in a self-service environment, are likely to be the key market dynamics of the customer service industry,' says Arun Ranganath, Senior Industry Analyst, IT Applications &Services Practice, Frost & Sullivan. 'The strength and scalability of KANA's multi-channel customer service solutions, as well as its focused value proposition in service functionality, and penetration into newer market segments, will help sustain and augment its growth in the future.'

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry. Each year Frost & Sullivan presents this Award to a company that has demonstrated the most insight into customer needs and product demands. The recipient company optimized its product line by leveraging products with the various price, performance, and feature points required by the market.

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%. KANA's award- winning solutions are proven in more than 600 companies worldwide, including approximately half of the world's largest 100 companies. For more information visit http://www.kana.com .

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.awards.frost.com or http://www.it.frost.com .

     Contact:
     Stacie Jones
     210.247.2450
     Stacie.jones@frost.com

     Jessica Hohn
     KANA
     508.561.1236
     jhohn@kana.com

     Ed Hadley
     PAN Communications
     978.474.1900

SOURCE  Frost & Sullivan