Summary of KANA SOFTWARE INC

Results of Operations and Financial Condition, Financial Statements and Exhibit

Item 2.02. Results of Operations and Financial Condition.

On May 28, 2009, Kana Software, Inc. ("KANA") issued a press release announcing total revenues, and license and service revenues for the first quarter ended March 31, 2009 and certain other financial information.

This press release is being furnished as Exhibit 99.01 to this Current Report on Form 8-K and is incorporated herein by this reference.

The information in this report, including the exhibit hereto, is furnished pursuant to Item 2.02 of Form 8-K and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section. The information contained herein and in the accompanying exhibit is not incorporated by reference in any filing of KANA under the Securities Act of 1933 or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

Use of Non-GAAP Financial Information

KANA provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). To help understand KANA's past financial performance and future results, KANA has supplemented its financial results that it provides in accordance with GAAP, with non-GAAP financial measures. The method KANA uses to produce non-GAAP financial results is not computed according to GAAP and may differ from the methods used by other companies. KANA's reference to these non-GAAP financial results should be considered in addition to results that are prepared under current accounting standards but should not be considered as a substitute for, or superior to, the financial results that are presented as consistent with GAAP. KANA's management uses the supplemental non-GAAP financial measures internally to understand, manage and evaluate KANA's business and make operating decisions. These non-GAAP financial measures are among one of the factors KANA's management uses in planning for and forecasting future periods. Reconciliation to the nearest GAAP financial measures of the non-GAAP financial measures is included in this press release attached hereto as Exhibit 99.01.