Nstein Increases its Earnings, Reduces its Expenses and Strenghtens its Financial Situation During the First Quarter

2002-05-09

The Company also completes numerous structuring projects

Montreal (Quebec), May 9, 2002 - During the first quarter of 2002, Nstein Technologies Inc. "Nstein " (EIN) recorded earnings of $373,533, compared to $201,667 for the same period last year. This amounts to an increase of 85.2%. The loss for the first three months of 2002 totalled $1.3 million, or $0.015 per share, compared to $1.8 million, or $0.021 per share for the corresponding period one year ago. This is a decrease of 25.0%.

The income recorded in the first quarter is mainly attributable to the sale of a user's licence for the Nserver™ software to Internet Securities, Inc. Nstein also recorded income for installation and maintenance services, which was provided by its current client base as part of on-going agreements.

With respect to expenses, Nstein's operating, sales and administration fees reached $1.1 million during the first quarter of 2002. This is almost unchanged compared to the same quarter one year earlier. The expenses for research and development stood at $584,940, a slight decrease compared to the same quarter last year when these expenses reached $593,525.

Satisfactory results

"We are satisfied with Nstein's financial progress. We expect that the pace of our new sales will accelerate during the year because we are involved in negotiations with a growing number of serious prospects. As a result, we anticipate that our financial situation will continue to strengthen until the end of the current fiscal year," said Mr. Mario Girard, Nstein's Chairman and Chief Executive Officer.

As of March 31, 2002, short-term assets totalled $10.0 million, compared to $5.7 million on the same date last year. Cash and cash equivalents amounted to $7.8 million at the end of the first quarter of 2002, compared to $3.6 million at the end of the same quarter in 2001. These increases are mainly attributable to the investment of $6.0 million by the Solidarity Fund QFL in Nstein share capital last March. At the end of the first quarter, term deposits remained unchanged at $1.0 million.

Completion of numerous structuring projects

The first quarter of 2002 enabled Nstein to carry out a good number of structuring projects to ensure the Company's growth.

"The sale to Euromoney's subsidiary Internet Securities, Inc. (ISI) in March constitutes a major breakthrough into the field of electronic information destined for the financial and business sectors. This market segment holds excellent business potential for Nstein." said Mr. Girard. This agreement will allow Nstein to gain first-rate international exposure. Through its 21 worldwide offices, ISI services clients in the institutional investment field across Latin America, Europe and Asia. ISI's global headquarters is located in New York and the company belongs to the Euromoney Group based in London.

"With respect to the major achievements of the last quarter, it is important to mention the strong support offered by the Solidarity Fund QFL, which invested $6 million in Nstein's share capital, as well as an additional $4 million in newly issued equity warrants, which can be exercised as of next year. "This is a true vote of confidence from the Fund in Nstein's model and its executive team, particularly at the present time when the context of the financial markets is difficult," noted Mr. Girard.

About Nstein Technologies

Nstein Technologies is a public company listed on the TSX Venture Exchange. The company develops and markets innovative content management software solutions based on its patented Linguistic DNA" technology'which combines the strengths of linguistic and statistical analysis with artificial intelligence. Nstein's nserver" software solution automates time-consuming and complex tasks such as content classification, XML tagging and summarization. The company's products enable a significant leap in effectiveness and cost reduction for content management, e-publishing, and
on-line companies.For further information on Nstein Technologies Inc., please visit www.nstein.com.

• 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.

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