The Company posts results for its first fiscal year - A PERIOD OF SIGNIFICANT ACCOMPLISHMENT FOR NSTEIN

2001-02-27

Montreal, Tuesday, February 27, 2001 - For its first fiscal year, terminating December 31, 2000, nStein Technologies Inc. "nStein" (MSE: EIN), a company developing and marketing innovative business solutions based on linguistic artificial intelligence, has posted a loss of $6 million, or $.08 per share. Before interest, taxes and amortization, the loss totalled $5.1 million, or $.07 per share. Approximately $3.0 million (before tax credits of $0.8 million) was spent on research and development activities. The Company's operating, sales and administration costs rose to $3.0 million.

During the period, the net receipt of liquidity linked to financing activities stood at $16.1 million ($17 million before share issue expenses). These financing sources consisted of private offerings totalling $13.2 million and of funding arrangements with the Bank of Montreal and Hewlett-Packard Canada of $3.8 million.

The Company ended the 2000 fiscal year with cash, cash equivalents and term deposits totalling $7.4 million. The issued debt at the end of the fiscal period stood at $3.3 million.

"In accordance with our forecasts, nStein did not post operating revenues during its first fiscal year," stated President and Chief Executive Officer, Mario Girard. "Our efforts were focused on the accelerated development of our technology and the recruitment of highly qualified technology and management personnel. In doing so, we established a solid foundation on which nStein can now build its activities and sustain solid growth."

Significant Achievements

The 2000 fiscal period saw a number of significant achievements for nStein. Most notably, investors demonstrated confidence in the Company during two private financing exercises that resulted in a total investment of $13.2 million. The success of these two private offerings prepared the ground for the Company's listing on the stock exchange on June 27, 2000.

nStein was also able to bring together a Board of Directors comprised of highly regarded individuals in the business world, whose knowledge and scope are of tremendous benefit to the Company.

"These achievements, combined with our intensive recruiting of top-notch people, have already reaped us very promising results," continued Mr. Girard. "In the year 2000, we developed a product, nMedia server,that is already at the marketing phase and targeted to a large market." This exceptionally innovative product is targeted to electronic publishers and permits texts contained in a data bank to be automatically sorted, classified and summarized thanks to a unique technology offering unparalleled precision.

On January 25, 2001, a partnership agreement was entered into with CEDROM-SNi, a Canadian leader in the electronic distribution of media information. According to the agreement, CEDROM-SNi will now use this leading-edge tool in its electronic distribution service.

"We have a number of other projects currently on the drawing board," stated Mr. Girard. "We have launched significant efforts to develop four key markets in which we will strive to become the leader in North America and abroad, including the media market where we already have a product in the marketing phase. The three other targeted markets are those of customer relations management (CRM), portals and the e-marketplace. All incorporate enormous development potential for nStein."

About nStein Technologies

nStein Technologies (EIN) is a public company listed on The Montreal Exchange since June 2000. It develops and markets innovative business solutions based on linguistic intelligence.

It is now estimated that the growing rate of Web pages is 7 million a day and the rate of emails 10 billion a day. The demand for intelligent tools to manage this exponential growth of electronic texts has therefore become increasingly urgent. nStein technology distinguishes itself by its efficiency and its unrivalled precision to analyse, classify and organize large volumes of documents in pertinent order, in several languages. nStein currently markets its technology to the information management industry. nStein is now positioning its cutting-edge technology to address the rapidly growing needs of the portal, "CRM" and e-Marketplace markets.

• The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
• Any statement that appears prospective shall not be interpreted as such.

###