Nstein Technologies Reports Year 2002 Results

2003-02-05

Montreal (Quebec), February 5th 2003 - Nstein Technologies Inc. "Nstein" (TSX-V:EIN) saw its revenues reach $1.4 million during the 2002 fiscal year ended December 31st, 2002, approximately the same amount as for the previous fiscal year. Nstein's revenues were generated chiefly from the sale of its Nserver™ solution to the e-publishing market, as well as from new product sales to Nstein's existing customers.

The net loss for the 2002 fiscal year was $4.7 million, or $0.05 per share, compared to $4.4 million for the previous year, or $0.05 per share. This is an increase of 6.8 %. With respect to expenses, the operating, selling and administrative costs added up to $4.3 million, an increase of 22.8% compared to 2001 when these expenses totalled $3.5 million. This increase was mainly due to the establishment of a sales team in the United States. Research and development costs were $2.2 million during the last fiscal year, compared to $1.9 million a year earlier.

Nstein implemented a rationalization plan in Q4 2002 with the objective of preserving its financial autonomy. "Despite this necessary action, Nstein pursued its commercialization efforts within the e-publishing market. Furthermore, Nstein was successful in launching its software solution into the Enterprise and Government markets. We're proud to have signed agreements notably with Industry Canada and the Service de développement des technologies de l'information (SDTI)." indicates Mario Girard, Nstein's Chairman and Chief Executive Officer. He adds, "Nstein continues to solidify its market position by pursuing and concluding significant partnership agreements with companies such as Gale® " a subsidiary of The Thomson Corporation group and a renowned publisher within the e-content research field".

Cash and cash equivalents totalled $3.3 million as of December 31st, 2002, compared to $3.6 million for the previous year. During 2002 fiscal year, Nstein allocated $1.4 million to debt repayment. Consequently, the company's debt has diminished considerably. Long-term debt at the end of 2002 was at $100,000 as compared to $1 million at the same time in 2001. Short-term debt was at $0.9 million on December 31st, 2002, compared to $1.4 million a year earlier.

"Nstein was particularly encouraged by the new business generated through our existing customer base " in spite of difficult economic circumstances experienced by the Information Technology industry over the past year. These sales demonstrate the significant benefits accruing to our customers, and the quality of the solutions Nstein is delivering", concluded Mario Girard.


About Nstein

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 the improved organization, navigation, and faster retrieval of information. Nstein's Nserver™ solution is a core content management component, which has enabled Nstein's customers to significantly increase their ROI through increased productivity, efficiency and revenue gains. Nstein's headquarters are in Montreal, Canada, with a presence in San Francisco, Washington, D.C., and London, UK. 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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