Knowledge Support

Trading Statement

Knowledge Support Systems Group Plc
9 October 2001



9 October 2001


             Knowledge Support Systems Group plc ('the Company')
                      Announce a Re-structuring program.

Following the appointment of David Mushin as Chief Executive Officer on 11
September 2001, the Company has now completed the first stage of a
re-structuring program that has included a reduction of the workforce by over
60 staff, bringing the staff numbers down to about 80. The Company also
announces an intention to increase its focus on the Retail and Petroleum
sectors, with a particular emphasis on the US and Western European markets.

Although the Company benefits from significant cash reserves, in light of the
disappointing recent financial results the decision has been taken to better
align the Company's operating cost base with the current projections of
revenue. It is the Company's intention to conserve cash in order to consider
further strategic investments which will assist with the growth and
development of the Company. As a result of these cutbacks, net cash burn
excluding revenue receipts will be reduced to less than £550K per month by the
end of the year. This will ensure that the Company has sufficient financial
resources to meet its operating and strategic requirements for the foreseeable
future. The Company currently has net funds of approximately £26m.

David Mushin, Chief Executive Officer of Knowledge Support Systems Group plc
said.

'In addition to the cost reduction, business development efforts will now be
focused on the Retail and Petroleum sectors in the US and Western European
markets. The workforce reduction we have announced was consistent with these
intentions. The majority of staff reductions took place in the UK. We will
continue to support existing customers and partners in the Telecom area.  In
general, across all our sectors, we have  reduced the level of investment in
research and development.

This is the first stage of implementing plans that will enable us to conserve
cash reserves and to re-focus activities on markets sectors and markets where
revenues can be generated in the shorter term'

For futher information please contact KSS;

David Mushin or Iain Cockburn                    Tel: 0161 228 0040

Tim Thompson
Buchanan Communications Ltd                      Tel: 020 7466 5000