MAJOR BREAKTHROUGH FOR NSTEIN INTO U.S. MARKET

2001-08-28

Montreal August 28, 2001 - Nstein Technologies Inc. "Nstein" (Mtl: EIN), the leader in development of innovative business solutions based on linguistic intelligence, announced the sale of its Nmedia Server user license to United Press International (UPI), a heavyweight in the global newswire business and its affiliate international news consortium Newsworld Communications. Nstein officials value the deal at a minimum of CDN$1.2 million over the five-year period, more than half of which will come in the first year.

Designed for distributors and managers of electronic information, the Nmedia Server allows for categorization, classification and summarization of vast amounts of unstructured data. Thanks to its unique Linguistic DNA(TM) technology, Nstein possesses a definitive competitive advantage within the Computer Aided Indexing (CAI) market.

"Our main objective was to acquire the best CAI tool to help improve our customers" access and interaction with our content," said UPI's President and CEO, Mr. Douglas D.M. Joo. "We examined a number of solutions, and Nstein's Nmedia Server solution clearly came out on top. The combination of speed, scalability, accuracy and flexibility was what really sold us."

The agreement to license Nstein's Nmedia Server for use in UPI's online newswire service includes the base license in English, French and Spanish as well as options for modules for Korean, Japanese, Arabic, Russian, German and Chinese language modules as well as integration, training and consulting services.

"Following up on the successful deployment of Nmedia Server at CEDROM-SNi, this deal clearly signals that we're a serious player in the American market," stated Mario Girard, Nstein's President and CEO. "This agreement demonstrates that our technology responds to very real and urgent needs in the new economy. Although there are other software solutions competing with ours in this segment, none of them can match the level of efficiency and precision our proprietary technology provides. We help our clients refine and streamline their electronic publishing businesses. We provide a competitive edge."

About Nmedia Server

Nmedia Server is an intelligent software platform that automatically categorizes, classifies and summarizes large volumes of unstructured text using Nstein's core Linguistic DNA technology. The tool is designed for electronic information managers and distributors, a U.S. market estimated to be worth, according to the Delphi Group, more than US$1 billion by 2002. Computer-Aided Indexing (CAI) refers to the categorization and indexing of unstructured data.

About UPI

Established in 1907, United Press International (UPI) is acknowledged as the pioneer of global news coverage and distribution. Today, hundreds of stories move through its global delivery system every 24 hours. UPI has "round-the-clock" coverage from more than 700 correspondents.

About Nstein Technologies

Nstein Technologies is a public company listed on the Montreal Exchange since June 2000. It develops and markets innovative e-business solutions based on linguistic artificial intelligence.
It is now estimated that the number of web pages is growing at 10 million a day and that more than 15 billion emails are sent every day. Because Nstein's content management tools automate time-consuming and complex tasks such as content classification, XML tagging, and summarization, the company is ideally positioned to capitalize on this booming content management market.

Nstein's intensive research in computational linguistics has resulted in Linguistic DNA technology'which combines the strengths of linguistic and statistical analysis with artificial intelligence to produce search results and organize them with unparalleled precision and relevance. Nstein currently markets its technology to the information management industry. Nstein is set to launch soon its second product, Nportal Server (for the corporate portal market). Over the coming months, Nstein's range of products will expand to include even more functionalities designed to address the rapidly growing needs of other markets, such as the e-marketplace and customer relationship management (CRM) sectors.

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