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Knowledge Technology (ARC)

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Thursday 28 June, 2001

Knowledge Technology

Interim Results

Knowledge Technology Solutions PLC
28 June 2001

For Immediate Release

28 June 2001

                      Knowledge Technology Solutions PLC

                           Interim Results for the

                           period to 31 March 2001

Knowledge Technology Solutions PLC, the provider of fast, interactive data
solutions, and owner of the financial information website,
announces its interim results as an AIM listed company, for the period to 31st
March 2001.


  * Progress in the development of the MarketTerminal product combined with
    strong interest from prospective corporate customers
  * 'Live' MarketTerminal trials with a major City financial services
    company underway
  * Group loss before tax of £138,029, reflecting investment in technology
    development and establishing the Cognita business
  * Prospects for the year as a whole remain good
  * Commenting on the results, Bernard Fisher, Chairman, said:

'Progress has been made in our business during the six month period to 31st
March 2001. Our proprietary technology MarketTerminal product is receiving a
particularly good response from prospective corporate clients. The prospects
for the year as a whole remain good.'

For further information please contact:

Bernard Fisher, Chairman     07747 634 634

Marc Pinter-Krainer, Chief Executive     020 8795 2700

Neil Boom, Director Gresham PR Limited     020 7329 7555

Roland Cornish, Chairman, Beaumont Cornish Limited     020 7628 3396


Chairman's Statement

The period ended 31st March 2001 was one of progress for Knowledge Technology
Solutions. I am pleased to report that the Group achieved good results in a
period that included its debut on the Alternative Investment Market and
further investment in the development of our intellectual property.

Cognita Technologies Limited ('Cognita')

Our investment in the development of Cognita continued as planned throughout
the six-month period. Progress has been made in developing our MarketTerminal
product which delivers real time and interactive financial data to
sophisticated market professionals using application server technology (ASP).
MarketTerminal is a flagship product which, the directors believe, will
represent strong growth opportunities for the Group.

There is strong market interest in MarketTerminal which has enabled us to
progress to 'proof of concept' trials and beta tests with a UK subsidiary of
one of Europe's largest financial institutions, and is currently trialing
MarketTerminal alongside its existing financial information systems.

Our longer term aim is to establish Cognita as a market-leading application
service provision company. We are confident that financial insitutions in need
of complementary lower cost financial information systems, that run alongside
Bloomberg or Reuters, will be a lucrative market for our product and our
technology. Accordingly, we are now recruiting a new Head of Sales who will
have direct requisite relationships and skills to sell MarketTerminal to the

In addition, the real time data management and application server technology
developed and owned by Cognita will position the Group as a specialist
provider of software solutions in those high growth areas.

During the period, the Group invested almost £200,000 in developing Cognita's
technologies and enhancing the functionality of MarketTerminal with additional
modules. The value of our software is not reflected in the Balance Sheet as
the costs relating to this development have been written off as incurred. Limited

We continue to use our expertise in real time data management and the new
technologies developed by Cognita to improve and diversify the service we
offer users of our financial information website (http:// at little additional cost. The PDA service
that was introduced in the first half of the year has enabled us to fulfil
customers' demands for share information whilst on the move.

Our use of flexible and innovative technology has been a differentiator in the
marketplace. In particular, our approach in having much of the site content
automatically generated has resulted in a low cost base. Several competitors
are now finding their focus on editorial content to be prohibitively
expensive, and with the reduction in VC funding and corporate investing, are
being closed, sold or merged. However, during this period Sharepages' unique
visitor numbers have been steadily increasing and with an anticipated lower
level of competition compared to the last two years, we expect this growth to
continue. As a low cost operator, we welcome this sector consolidation.


We have spent the last period putting in place some of the infrastructure to
enable Knowledge Technology Solutions to realise its planned strategy. We
recently announced that HSBC Investment Bank plc and Billam Plc have each
subscribed for 5 million new Ordinary shares. These new funds will enable us
to deliver real and measurable benefits to the business, particularly as we
now accelerate the MarketTerminal project.

Your directors' view of the prospects for the year as a whole remains good.



28 June 2001


                                                            Six months ended
                                                              31 March 2001
                                                   Notes            £

Turnover                                             3         90,253
Cost of Sales                                                  (38,507)
Gross Profit                                                   51,746
Administration expenses                                        (192,859)
Operating loss                                                 (141,113)
Interest receivable                                            3,084
Loss on ordinary activities before taxation                    (138,029)
Taxation on loss on ordinary activities              4         -
Loss on ordinary activities after taxation                     (138,029)
Dividends                                            5         -
Retained loss                                                  (138,029)
Basic loss per ordinary share                        6         (0.26)p
Diluted loss per ordinary share                      6         (0.26)p

All operations are continuing and there are no recognised gains and losses
other than the loss for the period.


                                                                  As at
                                                              31 March 2001
                                                    Notes           £

Fixed assets                                                    17,648
Tangible fixed assets
Current assets
Debtors                                                         63,621
Cash at bank and in hand                                        339,392
Creditors: amounts falling due within one year                  (54,750)
Net current assets                                              348,263
Total assets less current liabilities                           365,911

Capital and reserves
Called up share capital                                         65,342
Share premium account                                           438,598
Profit and loss account                                         (138,029)
Equity shareholders' funds                           10         365,911


                                                                   Six months
                                                                 31 March 2001
                                                           Notes       £

Net cash outflow from operating activities                   7        (143,927)
Returns on investment and servicing of finance
Interest received                                                     3,084
Net cash inflow from returns on investments and servicing             3,084
of finance                                                            ________
Capital expenditure
Purchase of tangible fixed assets                                     (2,146)
Net cash outflow from capital expenditure                             (2,146)
Acquisitions and disposals
Cash acquired with subsidiary                                         57,737
Net cash inflow from acquisitions and disposals                       57,737
Net cash outflow before financing                                     (85,252)

Issue of ordinary share capital                                       671,904
Share issue costs                                                     (247,262)
Net cash inflow from financing
Increase in cash                                             8        339,390


1     Basis of preparation

      The interim financial information in respect of the six months ended 31
      March 2001 is unaudited and has been prepared on the basis of the
      accounting policies set out in the company's Prospectus dated 8 November

      The financial information contained in this statement does not constitute
      statutory accounts. The company's first statutory accounts will be in
      respect of the period ending 30 June 2001.

2     Continuing activities

      The company was incorporated on 24 August 2000 and, with the exception of
      the issue of ordinary shares on incorporation, the Group did not trade
      until the acquisition of the entire issued ordinary share capital of Limited on 27 October 2000.

3     Turnover

      All of the turnover arises in the United Kingdom.

4     Taxation

      As a result of losses available no liability to corporation tax is
      expected to arise.

5     Dividends

      The Directors do not recommend the payment of an interim dividend.

6     Loss per ordinary share

      The loss per ordinary share have been calculated by dividing the loss on
      ordinary activities after tax attributable to shareholders by 52,804,651
      being the weighted average number of ordinary shares in issue during the
      period which carry the right to receive a dividend.

      The diluted earnings per ordinary share is the same as the basic earnings
      per share.

7     Reconciliation of operating loss to net cash outflow from operating

                                                               Six months ended
                                                                 31 March 2001

      Operating loss                                                   (141,113)

      Depreciation charges                                                4,009

      Increase in debtors                                               (44,643)

      Increase in creditors                                              37,820

      Net cash outflow from operating activities                       (143,927)

8     Reconciliation of net cash flow to movement of liquid funds

                                                               Six months ended

                                                                  31 March 2001

      Increase in cash for the period                                   339,390

      Net funds at start of period                                            2

      Net funds at end of period                                        339,392

9     Analysis of net funds
                                                                          As at
                                                                  31 March 2001

      Cash at bank and in hand                                          339,392

10    Reconciliation of movement in shareholders' funds

                                                               Six months ended

                                                                  31 March 2001

      Loss for the period                                              (138,029)

      New shares issued during the period                               769,700

      Issue costs                                                      (265,762)

      Net additions during the period                                   365,909

      Opening shareholders' funds                                             2

      Closing shareholders' funds                                       365,911

11    Non-cash transactions

      During the period, the company issued 49,998,000 ordinary shares of 0.1p
      per share in exchange for the entire ordinary share capital of Limited and 411,111 ordinary shares of 0.1p per share in
      consideration of services provided to the company in respect of its
      admission to the Alternative Investment Market. No goodwill arose on the
      acquisition of Limited.