Nstein Technologies acquires KMtechnologies

2004-04-22

Montreal, Quebec, April 22, 2004 - Nstein Technologies Inc. (TSX-V: EIN), an emerging leader in new Business Intelligence (BI) solutions, announced today that it has acquired KMtechnologies, a Canadian software developer of web-based collaboration solutions as well as document, knowledge and customer-relations management solutions. This acquisition provides Nstein with an important complement to its Global Intelligent Information Management (GIIM) platform for large corporations and organizations.

"KMtechnologies currently has 90 clients, and its solutions are used by over 30,000 users. The acquisition of KMtechnologies will therefore allow us not only to offer our GIIM solution to an existing client base, but to access a significant network of potential clients in the United States and Canada and offer our clients new collaboration and information management functions," stated Mr. Mario Girard, President and Chief Executive Officer of Nstein Technologies. "Nstein is very proud to announce this first acquisition and to offer, now more than ever, unique BI solutions for the discovery, organization, analysis (text mining), dissemination and now, sharing, of all information crucial to corporate operational and decision-making processes. One example of what Nstein will be able to offer is a collaborative dashboard driven by Nstein's powerful unstructured data exploration solutions that will provide previously-inaccessible critical indicators of particular interest to senior executives."

"This transaction is very good news for the KMtechnologies team as well as our clients and partners," agreed Mr. Frédéric Brabant, Vice President, Technology for KMtechnologies. "It is an extraordinary lever that will enable us to offer complete, global information management solutions to our existing clients, and is an excellent fit with our business plan going forward."

KMtechnologies' clientele includes large corporations and organizations such as Visa International, the Montreal Canadiens Hockey Team, Tembec and the University of New Mexico. The company had sales of $1.3 million in 2003 and received a total of $9 million for its product research and marketing. The acquisition of KMtechnologies should have an immediate positive impact on Nstein's financial results and growth.

In addition, Desjardins Venture Capital and Innovatech Montréal, both KMtechnologies shareholders, have undertaken to retain Nstein for the next two years as a preferred supplier of any collaboration and knowledge management solutions they might require.

Pursuant to the KMtechnologies acquisition agreement, Nstein will issue 5,950,000 common shares at a price of $0.30 per share, the majority of which will be voluntary escrowed, as well as warrants to acquire an additional one million common shares at $0.40 per share for a 12-month period following the date of the transaction, and at $0.50 per share for an additional 12 months. The acquisition of KMtechnologies is subject to the signature of the final agreements and other conditions, as well as regulatory approvals.

About Nstein Technologies 

Nstein Technologies, (TSX-V: EIN), an innovative software development company, provides a Global Intelligent Information Management (GIIM) platform for large corporations and organizations. This flexible platform assimilates, organizes, analyses (text mining), shares and disseminates all information arising from structured and unstructured multilingual data sources and essential to operational and decision-making processes. Nstein solutions based on its GIIM platform provide decision-makers with highly pertinent information and transform reactive decision-making into a proactive and even predictive process. Nstein offers new Business Intelligence (BI) solutions that create a new level of global knowledge, accessible at any time, particularly suited to e-publishing, finance, legal, government and homeland security markets. Nstein is based in Montreal, Canada with customer-facing presence in Boston, San Francisco, Washington D.C. and New York, USA. For more information, please visit our website at 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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