Nstein Reports Fourth Quarter Results for 2003

2004-02-11

Revenues up by 72%

Montreal, February 11, 2004 - Nstein Technologies Inc. (TSX-V:EIN) Nstein recorded revenues of $753,796 for the fourth quarter of the fiscal year ending December 31, 2003, a rise of 72% over the same period one year earlier when revenues reached $437,092. This increase in revenues is attributed largely to the agreements signed with VNU eMedia, an important e-publisher based in USA, and Health Canada. Company operations have generated a loss of $627,234 before tax credits for the fourth quarter of 2003, compared to a loss of $864,723 for the corresponding period in 2002. The net loss, taking into account tax credits, is settled at $499,734 for this quarter, compared to $435,873 for the fourth quarter in 2002.

Nstein recorded a loss of $2.4 million or $0.02 per share for the fiscal year ending December 31, 2003, compared with a loss of $4.7 million or $0.05 per share for 2002, for an improvement of 49%. Revenues rose to $1.8 million, up by 31% compared with the previous year, when they totalled $1.4 million.

Operating, selling and administrative expenses amounted to $2.9 million in 2003, for an improvement of 32% over 2002, when they came to $4.3 million. Meanwhile, research and development expenses totalled $1.7 million in the last fiscal year, compared with $2.2 million in the previous year. A program to streamline costs introduced in late 2002 enabled the company to realize these savings.

As at December 31, 2003, current assets were $4.8 million compared to $4.6 million as at December 31, 2002. Current liabilities reached $1.9 million at the end of the fiscal year compared to $1.8 million as at December 31, 2002. Also as at December 31, 2003, cash and cash equivalents stood at $3.1 million compared to $3.3 million as at December 31, 2002. Nstein's long-term debt was $749,883 compared to $129,963 as at December 31, 2002.

"The sales in the fourth quarter of 2003 are a concrete outcome of the market diversification strategy that Nstein introduced in 2003," stated Mario Girard, Chairman and Chief Executive Officer of Nstein Technologies. "Sales of our software suite to a major player in the e-publishing field once again demonstrated our dominant position herein. Nstein is leveraging its achievements in this market to offer its technology in other sectors, such as large corporations and government organizations. In this respect, our solutions will be used by Health Canada for the GPHIN project that involves worldwide monitoring of diseases and viruses and is being developed in collaboration with the World Health Organization. Nstein's technology will power this early warning platform to redistribute crucial public health information in real time in six languages. This platform is a good illustration of the full potential of our technology in business intelligence and shows how we can discover and disclose unstructured, and therefore previously unusable information, and produce a new generation of indicators that will transform decision-making."

About Nstein Technologies 

Nstein Technologies develops and markets innovative and industry-proven content management indexing and concept extraction technology solutions that generate superior business intelligence and enable information-intensive organizations to discover new business opportunities as well as increase productivity, solve mission-critical business problems and secure competitive advantages. Nstein's technology solutions leverage the value of unstructured information and create knowledge capital for customers within the e publishing, financial, legal, government and homeland security markets. Nstein is headquartered in Montreal, Canada, with operations in New York, San Francisco, Washington DC, Boston and Philadelphia. Nstein is a public company listed on the TSX Canadian Venture Exchange (EIN). For more information please visit our Web site at www.nstein.com

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