Nstein Technologies acquires Valsar

2004-09-10

· Firm to act as integrator of Nstein software solutions
· Valsar expects to close out this year with $4 million in revenues and 10% profitability
· The synergies created by the pooling of Valsar and Nstein customers will also result in sales gains for Nstein

Montreal, Quebec, September 10, 2004 - Nstein Technologies Inc. (TSX-V: EIN) announced today that it has acquired Valsar Consulting Group, a firm specializing in the integration of IT solutions for large corporations and organizations. Valsar has made a name for itself particularly in the areas of Business Intelligence (BI), program and project management, and business process engineering. The firm has reported nearly 20% annual growth in recent years, and is forecasting $4 million in revenues and 10% profitability for the current year.

"This is a key transaction for Nstein, which has acquired a complementary business unit essential to its operations," stated Mr. Mario Girard, Chairman of the Board and Chief Executive Officer of Nstein Technologies. "This acquisition meets every criteria of our growth strategy. Valsar is profitable. It has a solid customer base and is in a position to assume immediate responsibility for the integration of our software solutions. It will also contribute to our sales through the pooling of our respective customers."

This acquisition will notably allow Nstein to benefit from Valsar's BI and program and project management expertise, expand its potential clientele, offer its information management solutions to Valsar's customers, located mainly in North America, and bring in European business. Valsar counts Hydro-Québec, Laurentian Bank and Videotron among its clients, and has established a presence in over 18 federal bodies in the past few years. Furthermore, Valsar's team of experts will play the role of intermediary, facilitating exchanges between Nstein's research and development team and the major integrators, who will be in a position to offer their customers substantial value with Nstein's technology platform.

"This is excellent news and a very positive development for our team and our customers," underscored Mr. Jean-François Desaulniers, President of Valsar. "Our business plan definitely included taking a strategic position in the integration of large software solutions, and this transaction goes a long way towards achieving that. Our capability in senior consulting and program and project management will also facilitate the development of joint business opportunities. Our respective positions will provide superb market visibility for Nstein and Valsar."

Mr. Gaston Thibault, Executive Vice President at Valsar also stated that:" Nstein offers unique software solutions - like their Global Intelligence Information Management (GIIM) platform " that boost our product offering and help us meet our customers" needs even better. Our customers will have the opportunity to measure all the unexploited potential lying dormant in their unstructured data and the extent to which they could improve effectiveness and competitiveness with this solution. The GIIM platform has immense business potential, and Valsar can definitely help enhance its local and international profile."

"This transaction enables Nstein to pursue the acquisition strategy it introduced in 2004," concluded Mr. Girard. "It also links Nstein up with well-known software solution integrators, and a team that has proven its ability to run a tight operation and generate sustained profits since the firm was founded in 1992. In fact, Valsar has continually generated net profits and working capital well above the industry average."

The terms of the Valsar acquisition agreement call for Nstein to issue 12,053,846 common shares at $0.26 per share on closing of the transaction, subject to a 24-month voluntary escrow. The $576,000 balance of the sale price will be paid over a three-year period in installments of $192,000 per year, either in cash or in common shares priced at $0.26 per share. The acquisition is also subject to regulatory approval.


About Nstein Technologies

Nstein Technologies, (TSX-V: EIN), an innovative software development company, provides large corporations and organizations with a Global Intelligent Information Management (GIIM) platform for structured and unstructured multilingual data sources. This flexible platform assimilates, organizes, analyzes (text mining), translates, shares and disseminates information essential to operational and decision-making processes. Nstein's GIIM-based solutions 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 a customer-facing presence in Boston, San Francisco, Washington D.C., New York and Paris. More information is available 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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For more information:

Nstein Technologies Inc.:
Investor Relations

Bruno Martel
Finance Director
Nstein Technologies Inc.
Tel: 514 908-5406
bruno.martel@nstein.com