Nstein announces an additional investment of $2 million in its capital by the Solidarity Fund QFL

2003-08-28

Montreal, August 28, 2003 - Nstein Technologies Inc. (TSX-V:EIN) announced today that the Solidarity Fund QFL (the "Fund") has agreed to make an additional investment of $2 million in Nstein's capital. The investment is to be made through a private placement of approximately 28.6 million of Nstein's treasury common shares issued at $0.07 per share. The Fund will also obtain equity warrants allowing the Fund to acquire 2 million of treasury common shares to be issued at $0.10 per share, totaling $200,000. The equity warrants would be exercisable for a period of five years. The private placement is conditional upon the concurrent disbursement by a Canadian financial institution of $1.8 million under a $ 2.25 million term loan to be obtained by the Company, in respect of which the Company expects a decision in September 2003, and is subject to other customary closing conditions including a satisfactory due diligence review by the Fund and receipt of all necessary regulatory approvals. The proceeds of the financing will be used for the commercialization of the Company's products.

The Solidarity Fund QFL presently owns 20 million common shares, representing 19% of the total 104.2 million of Nstein's issued and outstanding common shares. Upon closing of the transaction, the Fund will own 37% of Nstein's common shares or 38% upon exercising of the 2 million equity warrants. In connection with the proposed transaction, approximately 6.7 million equity warrants previously issued to the Fund will be cancelled.

About The Solidarity Fund QFL

With over $4.0 billion in assets, the Solidarity Fund QFL is an investment fund that relies on the savings of Québecers, primarily through its RRSP, to help create and maintain jobs in Québec companies and to further Québec's economic development. The Fund currently has over 550,000 shareholders and has helped, on its own or with other financial partners, create, maintain or support over 97,000 jobs. For further information please visit www.fondsftq.com


About Nstein Technologies 

Nstein Technologies Inc. is an industry leader in providing innovative content management software solutions to the e-publishing, enterprise and government sectors. Nstein's products automate complex tasks such as document indexing and summarizing, and enable organizations to maximize the value of their content assets through improved organization, navigation, and faster information retrieval. Nstein's Nserver solution is a core content management component, which has enabled Nstein's customers to significantly increase their ROI through gains in productivity, efficiency and revenue.

Nstein's headquarters are in Montreal, Canada, with operations in San Francisco, Washington, D.C., and London, U.K. For further information please visit www.nstein.com

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• Any statement that appears prospective shall not be interpreted as such.

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