Nstein releases its results for 2004

2005-03-02

The Company triples sales in the fourth quarter, ending the year with $4.8 million in revenues, a 173% increase

Montreal, Quebec, March 2, 2005 - Nstein Technologies Inc. "Nstein" (TSX-V: EIN), today released its results for the fourth quarter and year ended December 31, 2004.

2004 proved to be an important year for Nstein. With three acquisitions, the Company has gained the key resources and tools it needs to become one of the few enterprises now able to offer major international organizations complete solutions for managing unstructured, multilingual information.

Nstein's revenues jumped more than 173% in 2004, reaching $4.8 million compared to the $1.8 million recorded in 2003. Additional investments were required to integrate the acquisitions and perform ongoing marketing, research and development activities, leading to an increase in the loss before interest, income tax and amortization from $2.2 million to $2.3 million in 2004. For the year, the net loss stood at $3.2 million or $0.02 per share compared to $2.4 million or $0.02 per share for 2003. In the fourth quarter of 2004, revenue tripled to $2.3 million compared to $753,796 in 2003. The loss before interest, income tax and amortization was $461,226 for the quarter compared to $434,217 the previous year. The net loss stood at $1,036,239 or $0.004 per share in 2004 compared to $499,734 or $0.004 per share for 2003. The loss recorded for the fourth quarter of 2004 includes an amount of $463,632 which stems directly from the acquisitions, for amortization of intangible assets for KMtechnologies, Alis Technologies, and Valsar Consulting Group; these elements had no impact on the Company's cash flow.

"In 2004, we seized the opportunity to establish a more advantageous position vis-à-vis the competition, due to the trend to consolidation extant in our industry in North America and Europe," stated Mario Girard, Chairman and Chief Executive Officer of Nstein Technologies. "Acquiring KMtechnologies, Alis and Valsar has bolstered Nstein's structure in terms of technology, products and services by adding high-potential components such as instant translation and display of information in all major languages, integration services, by broadening of its pool of potential customers and contact network, and by providing access to additional funds for the ongoing marketing of solutions. That said, we expect our momentum to continue this year, allowing us to reap the fruits of these initiatives and the efforts undertaken over a year ago."

Prospects for growth in 2005

Nstein is pursuing its strategy for growth and continues to concentrate on increasing revenues, the profitability of its marketing activities and their focus on promising vertical markets. Buoyed by the credibility of its technology and renowned e-publishing customers, the Company intends to reach its targets by broadening its slate of services to include other high-potential sectors, including homeland security and intelligence. The launch of the Global Public Health Intelligence Network (GPHIN II) at the United Nations last November attests to the Company's ability to penetrate this rapidly emerging market. Nstein believes the sector could become a major revenue stream for the Company.

"Our technology platform can be used in a variety of ways, and this gives Nstein a significant edge. Currently, the Company's sales cycle usually ranges from six to twelve months in the e-publishing homeland security and intelligence sectors, depending on the customer and the planned solution's size. To counterbalance these relatively long cycles, we are now looking at other potential uses for our technology platform which could shorten the sales cycle. We are currently privileging solutions for the Corporate Intelligence sector that would give companies, for example, real-time access to their customers' opinions as well as available information on them and their competitors in the press, forums, blogs, etc.

"In all, 2005 should be a year of growth and achievement for Nstein. We have the tools we need to substantially increase our market share in this rapidly expanding industry. What is more, we have a dynamic team that is determined to make Nstein a real success," concluded Mr. Girard.

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.

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

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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


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