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Knowledge management (KM) has become an effective strategic tool to improve the organizational competition capacity in the age of knowledge economy. Knowledge management performance evaluation is an important way to know the knowledge management level of an enterprise. In this study, a knowledge management performance evaluation indices system was established based on knowledge management theory and analytic network process (ANP) performance evaluation methodology. Theoretical foundations and application process of ANP were discussed; dependence and feedback among indices were analyzed. Super Decisions software was used to obtain the result of ANP model for the indices system. The case study in this paper demonstrated that the ANP method can solve problems with dependent indices effectively.