Issue of Equity

Knowledge Technology Solutions PLC
15 July 2004

                       KNOWLEDGE TECHNOLOGY SOLUTIONS PLC

                                ISSUE OF EQUITY

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.




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