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KANA Software, Inc. Comments on Chordiant Letter

^{Published on 2009-12-18 05:10:13 - Market Wire}
 

MENLO PARK, CA--(Marketwire - December 18, 2009) - KANA Software, Inc. (OTCBB: [ KANA ]), a world leader in innovative customer service solutions, today announced that it received a letter on December 17, 2009 from Chordiant Software ("Chordiant"), in which Chordiant expressed interest in a transaction in which it would acquire all of the outstanding common shares of KANA for $1.20 per share consisting of cash and Chordiant common stock, such stock equaling 19.9% of the current outstanding shares of Chordiant common stock (valued at the average price of Chordiant stock for the 10-day trading period ending five trading days prior to the closing of the proposed transaction). Chordiant is a competitor of KANA with an enterprise value of approximately $35 million.

KANA notes that the letter is incomplete, non-binding and highly conditional, including contingencies such as financing, due diligence and the negotiation of a definitive merger agreement. In particular, the letter does not indicate how Chordiant will finance the cash portion of the transaction and the expenses and ongoing operations of a combined business.

KANA will comply with the terms of the Asset Purchase Agreement that it signed on October 26, 2009, which prohibits it from engaging in discussions in response to an incomplete proposal such as the one provided by Chordiant, and accordingly will not be communicating with Chordiant in response to this letter.

KANA has not changed its plans to hold its scheduled stockholder meeting on December 23, 2009 to vote on a proposal to approve the Asset Purchase Agreement, and expects to consummate the asset sale shortly thereafter. KANA's board of directors has not changed its unanimous recommendation to vote FOR the proposal to approve the asset sale.

About KANA Software, Inc.

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 percent. KANA's award-winning solutions have been proven in more than 600 companies worldwide, including approximately half of the world's largest 100 companies. For more information, visit [ www.KANA.com ].

NOTE: KANA is a registered trademark of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.