Exercise of Warrants

22/08/2003

Knowledge Technology Solutions PLC ("KTS") announce that Beaumont Cornish Limited, formerly nominated advisers to KTS at the time of the company's flotation, exercised on 15 August 2003 subscription rights in respect of 1,306,846 Warrants at the exercise price of 5.625p per Ordinary Share.

On 18 August 2003 Loeb Aron & Company Ltd exercised subscription rights in respect of 200,000 Warrants at the exercise price of of 5.625p per Ordinary Share.

Following the exercise of these Warrants the only Adviser Warrants still outstanding are 680,135 Warrants, held in the name of Loeb Aron & Company Ltd, which lapse on 7 November 2003.

The exercise of Warrants has raised £84,760.08 of additional working capital for the Company.

Application has been made for 1,506,846 Ordinary Shares to be admitted to trading on the Alternative Investment Market of the London Stock Exchange. These Shares will rank pari passu in all respects with the existing Ordinary Shares in issue and dealings in such shares are expected to commence on 29 August 2003.