Issue of Equity

15/07/2004

Knowledge Technology Solutions PLC ("KTS") announces that options have been exercised over 260,000 ordinary shares of 0.1p each at a price of 4.5 pence per share.

Application has been made for the new ordinary shares to be admitted to AIM and for trading to commence at 8.00a.m. on 16 July 2004. These new ordinary shares will, when allotted and issued fully paid, rank pari passu in all respects with the existing ordinary shares in issue.

The total number of KTS ordinary shares in issue following the exercise of options will be 148,274,732.