KANA Appoints New Chief Financial Officer

.--(KANA Software, Inc. (OTCBB: KANA.OB - News), a world leader in multi-channel customer service, today announced that Chief Financial Officer John Thompson is retiring and will be succeeded by Mike Shannahan, current KANA board member and chairman of KANA’s audit committee. Thompson will begin phasing out after filing the Company’s annual report on form 10-K with the SEC and will remain with KANA for several months to assist in the transition of his responsibilities to Shannahan.

“On behalf of everyone at KANA, we thank John for his contributions to the Company over the past three plus years. John has been an integral part of our turnaround efforts and has done a great job managing the company’s financial organization, which led to our positive operating performance and return to profitability in the third and fourth quarters,” commented Michael Fields, KANA CEO.

“Mike Shannahan is a natural choice as a successor, given his position as current KANA board member and audit chair. Mike’s track record of leadership as CFO of several public companies and his extensive experience in the software industry make him an ideal fit for KANA going forward. He will be instrumental in our success as we drive towards our long-term growth plans, and we are delighted to have him join our leadership team,” concluded Fields.

Mike Shannahan brings over 28 years of finance and public accounting experience to KANA. Previously, he was CFO of Medsphere Systems Corporation, a provider of electronic health record software. He has also served as CFO of Chordiant Software, NetObjects and Broderbund Software. Prior to these positions, he spent eighteen years with KPMG as a Partner in the Information, Communication and Entertainment practice, focusing almost exclusively on software companies.

Shannahan is a member of the American Institute of Certified Public Accountants and California Society of Certified Public Accountants. He holds a Bachelor of Science in business administration with a concentration in accounting and a Bachelor of Arts degree from Rockhurst College, Kansas City, MO, graduating cum laude.