Issue of Equity

15/07/2004

Smit Berry has resigned as non-executive director of the Company with effect from 29 July 2004.

After five years with the Company, Smit Berry has chosen to concentrate on his role as Chairman of Silvermines Media Plc, which debuted on the Alternative Investment Market today.

Smit has informed the Company that he placed 2.2 million KTS shares at 5 pence with a buyer on the 14 July, with the raised funds intended for making an investment in a separate company. Smit Berry now holds 7,813,600 shares representing 5.3% of the issued share capital.

Marc Pinter-Krainer, Chief Executive of Knowledge Technology Solutions, said:

"Smit has made an important contribution to the development of KTS, and we wish him every success with his other ventures."