Nstein announces its results for the second quarter of 2005

2005-08-11

The Company quadruples its revenues compared to the same period last year

Montreal, Quebec, August 11, 2005 - Nstein Technologies Inc. "Nstein" (TSX-V: EIN) has announced its results for the second quarter ended June 30, 2005.

Nstein's growth momentum continued in the second quarter with revenues totalling $2.7 million compared to $690,566 last year, thus representing a 286% increase. The Company posted a loss before financial expenses, income tax, depreciation and amortization of $339,304 compared to $667,179 the year before. The loss totalled $842,403 or $0.005 per share in the second quarter of 2005 as opposed to $752,011 or $0.006, last year. It includes an amount of $329,338 associated with the amortization of intangible assets related to businesses acquired in 2004. These items have no impact on the Company's cash flow.

For the six-month period ended June 30, 2005, revenues totalled $5.1 million as opposed to $1.5 million a year earlier, representing an increase of 249%. The Company posted a loss before financial expenses, income tax, depreciation and amortization of $715,986 compared to $1.2 million for the same period in 2004. The loss totalled $1.7 million or $0.009 per share in the first half of 2005, as opposed to $1.4 million or $0.010 last year. It includes an amount of $658,675 associated with the amortization of intangible assets related to businesses acquired in 2004.

"Our revenues are growing consistently," stated Mario Girard, Chairman and Chief Executive Officer of Nstein Technologies. "Several positive events make this quarter noteworthy, primarily the signing of new contracts such as Million Dollar Round Table, and the further developments of existing projects such as with the Public Health Agency of Canada and ProQuest Information and Learning. I would also like to mention our winning of the OCTAS 2005 Excellence award, the highest honour given by the Fédération de l'informatique du Québec and the OCTAS 2005 for Technological Innovation for our early warning solution. These two prizes confirm the industry's recognition of Nstein."

Outlook

"Over the coming quarters, we will be increasing our marketing efforts in Nstein's three targeted sectors: e-publishing, homeland security and intelligence, and corporate intelligence. We are determined to become a leader in the management of global unstructured multilingual information. To reach this objective, we will continue investing in the growth of the Company while maintaining sound management practices. We will also remain on the lookout for strategic partnerships or acquisitions that will benefit our Company," concluded Mr. Girard.

About Nstein Technologies

Nstein Technologies (TSX-V: EIN) develops and markets leading edge software solutions for analyzing vast amounts of unstructured data in virtually all languages. Nstein's linguistic based platform collects, organizes, analyzes, cross examines, shares and translates data from any sources, in real time. Nstein's solutions transform reactive decision making into a high impact proactive and even predictive process, and solve mission critical problems. Nstein has developed tailored solutions for clients in homeland security & intelligence and e publishing markets, as well as for large enterprises and government organizations. The Company is headquartered in Montreal, Canada, with offices in the United States and Europe. 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.

To see the complete version of the press release with financial tables,click here.

###

For more information:

Nstein Technologies Inc.:
Investor Relations

Robert Barakett
Executive Vice-President and Chief Financial Officer
Nstein Technologies Inc.
Tel: 514 908-5406
robert.barakett@nstein.com

François Kalos
The Equicom Group Inc.
Tel: 514 844-6054
fkalos@equicomgroup.com