Nstein announces its results for the third quarter of 2005

2005-11-25

Revenues double in comparison to the same period last year

Montreal, Quebec, November 25, 2005 - Nstein Technologies Inc. "Nstein" (TSX-V: EIN) has announced its results for the third quarter ended September 30, 2005.

Nstein's growth momentum continued in the third quarter, with revenues totalling $2.6 million compared to $1.1 million last year, thus representing a 124% increase. The Company posted a loss before financial expenses, income tax, depreciation and amortization (EBITDA) of $638,572 compared to $664,013 the year before. The net loss totalled $1,196,060 or $0.006 per share in the third quarter of 2005 as opposed to $786,233 or $0.005 last year. However, this loss recorded in the third quarter of 2005 includes an amount of $334,730 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 nine-month period ended September 30, 2005, revenues totalled $7.6 million as opposed to $2.6 million a year earlier, representing an increase of 194%. The Company posted a loss before financial expenses, income tax, depreciation and amortization (EBITDA) of $1.4 million compared to $1.9 million for the same period in 2004. The loss totalled $2.9 million or $0.015 per share in the first nine months of 2005, as opposed to $2.2 million or $0.015 last year. The loss recorded as at September 30, 2005 includes an amount of $1.0 million associated with the amortization of intangible assets related to businesses acquired in 2004.

"This third quarter marked the achievement of some significant milestones for the Company," stated Mario Girard, Chairman and Chief Executive Officer of Nstein Technologies. "First, the announcement of contracts with new renowned clients such as Getty Images and Cyberpresse, then the integration of Nstein's technology into IBM's open platform for unstructured information analysis, and finally, the closing of a $4.1 million financing with US investors in October. This private placement will support the execution of the Company's business plan, which includes the accelerated marketing of its solutions."

Outlook

"The Company's sustained growth and profitability remain our primary objectives. All our commercial and corporate activities are focused on the achievement of these goals. They guide our ongoing market development efforts with reputed customers and the realization of promising partnerships in the area of unstructured multilingual information management. Finally, we remain committed to realizing these goals while maintaining sound business practices," 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 corporations 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

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