EXHIBIT 99.1

                  KANA ANNOUNCES $125 MILLION PRIVATE PLACEMENT

REDWOOD CITY, CALIF. - JUNE 7, 2000 - Kana Communications, Inc. (NASDAQ:KANA)
today announced that it has entered into definitive purchase agreements for the
sale of 2.5 million shares of common stock to certain institutional investors
for $125 million (based upon Kana's closing price on June 6, 2000). Kana intends
to use net proceeds from this private placement for marketing and distribution
activities, product development, capital expenditures and for working capital
and other general corporate purposes.

ABOUT KANA COMMUNICATIONS INC.

Kana Communications, Inc. (NASDAQ: KANA), a leading provider of web-architected
e-business solutions, delivers a broad range of world-class, integrated
e-business and interaction applications with a modular and scalable platform for
both Internet and Global 2000 companies. Kana solutions deliver personal portals
that offer customers, partners and the enterprise a global view of their
communications and relationships. This global view includes managing the full
set of communications channels such as e-mail, Web, chat, instant message, VOIP,
phone and person-to-person, as well as e-business and communications
applications to integrate the marketing, sales and service functions. This
full-service suite enables e-businesses to compete and succeed in today's
customer-driven economy. For more information about the solutions found in more
than 600 companies, including 7 of the 10 most trafficked Web sites, please
visit Kana at http://www.kana.com.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995: INFORMATION IN THIS RELEASE THAT
INVOLVES KANA'S EXPECTATIONS, BELIEFS, HOPES, PLANS, INTENTIONS OR STRATEGIES
REGARDING THE FUTURE ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. THESE STATEMENTS INCLUDE STATEMENTS ABOUT KANA'S STRATEGIES IN
THE MARKETPLACE, 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, 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, THE SUCCESSFUL INTEGRATION OF SILKNET,
COMPETITION, INCREASED COMPETITION DUE TO KANA'S EXPANDED PRODUCT OFFERING,
RISKS ASSOCIATED WITH THE EVOLVING AND VARYING DEMAND FOR CUSTOMER COMMUNICATION
SOFTWARE, OUR ABILITY TO EXPAND OUR OPERATIONS, THE SUCCESSFUL INTEGRATION BEI
AND NETDIALOG, ACCEPTANCE OF EMAIL AND THE INTERNET AS A COMMUNICATIONS MEDIUM,
LITIGATION OVER PROPERTY RIGHTS, AND GENERAL ECONOMIC FACTORS. THESE AND OTHER
FACTORS ARE RISKS ASSOCIATED WITH OUR BUSINESS THAT MAY AFFECT OUR OPERATING
RESULTS ARE DISCUSSED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION ("SEC") INCLUDING KANA'S REGISTRATION STATEMENT ON FORM S-1 DECLARED
EFFECTIVE ON SEPTEMBER 21, 1999,KANA'S REGISTRATION STATEMENT ON FORM S-4
DECLARED EFFECTIVE ON MARCH 22, 2000 AND KANA'S PERIODIC REPORTS ON FORMS 10-K
AND 10-Q.