Placing and additional listing

05/12/2002

As previously announced on 6 October 2002, KTS is pleased to confirm that it has placed 2,650,000 new ordinary shares of 0.1p each ('Ordinary Shares') in the Company at 4p per share to raise £106,000 of working capital for the Company. The shares have been placed with institutional and other investors via Octopus Asset Management Limited.

Application has been made for the admission of the new Ordinary Shares to trading on AIM. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares of the Company. Dealings in the new Ordinary Shares are expected to commence on or about 11 December 2002.

For further information, please contact:

Dr Marc Pinter-Krainer 020 7256 2300
CEO, Knowledge Technology Solutions

Kirsty Campbell 020 7648 8700
Seymour Pierce Limited

Neil Boom/Mallika Basu 020 7404 9000
Gresham PR Ltd