The Company reduces its net loss by almost 40% in the first quarter of 2001 NSTEIN POSTS ITS FIRST OPERATING REVENUES

2001-04-24

Quebec City, April 24, 2001 - The first quarter of the 2001 fiscal year, which ended March 31, saw nStein Technologies Inc. "nStein" (Mtl: EIN) record its first operating revenues, which totalled $201,667 and are attributable to CEDROM-SNi's purchase of an nMediaServer user license.

Operating, sales and administration costs stood at $1.1 million, compared to $229,111 for the same period last year. Research and development costs totalled $534,525 at the end of the first quarter of 2001, compared to $2.6 million for the same quarter in 2000.

The net loss for the first quarter of the 2001 fiscal period was $1.8 million, or $0.02 per share, compared to $2.9 million, or $0.04 per share in the same quarter of last year. The 2001 first quarter figure represents an almost 40% decrease in the net loss, made possible by nStein's first operating revenues and the reduction in research and development costs.

"We are expecting nStein to see revenues gradually increase over the remainder of the 2001 fiscal year as well as during the next fiscal period," stated Mario Girard, President and Chief Executive Officer of nStein. " The ongoing marketing of the nMediaServer combined with that of another new product which is targeted to the corporate portal market, should allow us to meet this objective by the 2002 fiscal period.."

nStein's assets stood at $9.9 million as of March 31, 2001, compared to $10.9 million one year prior. The Company's long-term debt remained unchanged at $2.0 million.

nStein successfully begins marketing its technology

nStein's marketing of its technology during the first quarter of 2001 was therefore clearly successful, with its sale of an initial nMediaServer user license to CEDROM-SNi, Canada's leader in distributing media information over the Internet and a prominent producer and publisher of electronic information products.

nStein's marketing efforts are also continuing through discussions with various American companies. These discussions are progressing well, and the Company is confident it will be in a position to announce soon new agreements. "nStein took a major step in its development during the initial months of the 2001 fiscal year," continued Mr. Girard, 'and we are very encouraged by the results we've obtained. For the remainder of fiscal 2001, nStein will continue invest the same high level of energy into its marketing efforts. Today, we are truly witnessing the initial benefits of the research and development work we put into our new and innovative products."

Mario Girard to focus fully on nStein's development

In addition, Mario Girard, President and Chief Executive Officer of nStein Technologies, announced today that he is leaving his position as President and Chief Executive Officer of GESPRO Technologies in order to devote himself entirely to nStein's development that has accelerated in the last months.

"There are currently a number of highly promising projects underway at nStein, which require my full attention," explained Mr. Girard, 'and I am very much looking forward to focusing on this work. nStein represents a marvellous challenge for me. The Company's technology is excellent and has high commercial potential. It is backed by a seasoned management team and a solid development strategy. Today, our work consists of capitalizing on these success factors."

Mr. Girard will continue in his role as Chairman of the Board of GESPRO Technologies.

About nStein Technologies

nStein Technologies 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 is well positioned in this currently booming market. 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. 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 portal, customer relations management (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.

###