Cancellation of Warrants

Knowledge Technology Solutions PLC
04 September 2003

          Knowledge Technology Solutions Plc ('KTS' or 'the Company')

                        Cancellation of Founder Warrants

At the time of the Company's flotation in November 2000, the Company issued
50,000,000 Founder Warrants. The terms of the Founder Warrants enabled the
holder to subscribe for Ordinary Shares in the Company at a price of 0.1p per
share.

The Company has reached agreement with the holders of all the Founder Warrants
that, for nil consideration, the holders will surrender for cancellation by the
Company all of their Founder Warrants.

All Founder Warrants have been surrendered by their respective holders:

Number of Founder Warrants  Holder
____________________________________________________________
20,000,000     Smartshares Inc. *
10,000,000     Tipakorn Anuvatnujotikul **
10,000,000     Smit Berry
7,500,000      Ennis International Ltd
2,500,000      Rosedene Investments Ltd
___________________________________________________________
50,000,000
____________________________________________________________

* representing the interests of Dr Marc Pinter-Krainer
** jointly held with Paul McGroary


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