eGain Solution for Customer Service Receives KM World® Magazine's "Trend-Setting Product of the Year" Award for Second Year in a Row

Mountain View, Calif. (September 6, 2006): eGain Communications Corp. (OTC BB: EGAN.OB), provider of the industry's top-rated* customer service and contact center software for in-house or on-demand deployment, announced today that KMWorld (www.kmworld.com) has named eGain OnDemand as a recipient of the KMWorld "Trend-Setting Products of the Year" award for 2006.

Now in its fourth year, KMWorld's Trend-Setting Products awards program honors companies whose products hold promise for the knowledge management marketplace, emphasizing knowledge management as an approach to delivering solutions to an organization, its workers and its customers. KMWorld editors selected its list of Trend-Setting Products after evaluating input from experts including colleagues, analysts and users—from C-level executives to entry-level knowledge workers.

"Assembling the list of Trend-Setting Products of 2006 is a year-long collaborative effort with editorial colleagues and analysts and, especially, users," says Hugh McKellar, KMWorld editor in chief. "A pioneering solution, eGain OnDemand is a proven customer service solution that has enjoyed success in the mid-market as well as the most demanding enterprises."

"eGain OnDemand helps businesses rapidly set up customer interaction hubs for effective, efficient, and consistent multichannel customer service and improved contact center performance," said Ashu Roy, CEO of eGain. "We are delighted to be, once again, recognized by KMWorld as a market leader for adding strategic business value to our customers."

The "Trend-Setting Products of the Year" winners for 2006 will be published in the September issue of KMWorld® magazine.

About eGain OnDemand
eGain OnDemand is the industry’s first-ever hosted customer service software. Proven in mission-critical, large-scale deployments for more than eight years, the solution enables companies to get single or multichannel customer service operations up and running quickly, without requiring extensive IT resources. Some businesses have chosen eGain OnDemand to prove business value before investing in the company's on-premise solution. With eGain, the transition from on-demand to in-house deployment and vice versa is uniquely seamless, virtually eliminating risk in the solution acquisition process. For additional information on eGain OnDemand, visit: http://www.egain.com/products/on_demand.asp

About KMWorld
The leading information provider serving the knowledge management systems market, KMWorld covers the latest in Content, Document and Knowledge Management and informs more than 51,000 subscribers about the components and processes - and subsequent success stories - that together offer solutions for improving business performance.

About eGain
eGain (OTC: EGAN.OB) is a leading provider of customer service and contact center software for in-house or on-demand deployment. Trusted by prominent enterprises and growing midsize companies worldwide, eGain has been helping organizations achieve and sustain customer service excellence for more than a decade. 24 of the 50 largest global companies rely on eGain to transform their traditional call centers, help desks, and web customer service operations into multichannel customer interaction hubs. These hubs enable dramatically improved customer experience, unified multichannel customer service, end-to-end service process efficiencies, and enhanced contact center performance.

Headquartered in Mountain View, California, eGain has an operating presence in 18 countries and serves over 800 enterprise customers worldwide. To find out more about eGain, visit www.eGain.com or call the company's offices: 800-821-4358 (United States), 1753-464646 (UK and rest of Europe).

Source: 2005 Patricia Seybold Group's bull's eye reports on cross-channel, cross-lifecycle customer service - overall capabilities, knowledge management, architecture and analytics; 2005 Forrester Wave report on eService

eGain, the eGain logo, and all other eGain product names and slogans are trademarks or registered trademarks of eGain Communications Corp. in the United States and/or other countries. All other company names and products mentioned in this release may be trademarks or registered trademarks of the respective companies.

eGain media contact:

Maeve Naughton
Tel: 650-230-7449
Email: pr@egain.com