Nstein releases its results for the first quarter of 2005

2005-05-09

Revenues up 215% in Q1

Montreal, Quebec, May 9, 2005 - At its annual general meeting held today, Nstein Technologies Inc. "Nstein" (TSX-V: EIN) released its results for the first quarter ended March 31, 2005.
In the first quarter of 2005, revenues more than tripled to $2.4M compared to $761,977 for the same period last year. The Company posted a loss before financial expenses, income tax, depreciation and amortization of $373,399, compared to $557,556 the previous year. The net loss was $832,016 or $0.004 per share in the first quarter of 2005, compared to $620,994 or $0.005 last year. The net loss recorded in the first quarter of 2005 includes an amount of $329,338 for amortization of intangible assets related to businesses acquired in 2004, i.e. KMtechnologies, Alis Technologies and Valsar Consulting Group. These items have no impact on the Company's cash flow.

In his speech, Chairman and Chief Executive Officer Mario Girard stated that 2004 proved to be a very important year for Nstein: "We are now one of the few firms that can provide large organizations with complete solutions for managing unstructured multilingual information at the international level. Because of this, Nstein is very well positioned to make significant inroads into its two new target markets, homeland security and intelligence and corporate intelligence. Nstein continues to provide its solutions to the e-publishing sector, a market in which the Company is proud to have a growing number of major clients."

"We are posting ongoing growth in revenues from quarter to quarter," remarked Mr. Girard. "This is attributable to the effective integration of the personnel and technologies involved in the companies that were acquired in 2004. We are also noting some urgency in the demand for new solutions in the homeland security and intelligence market, which could augur well for Nstein."

Outlook

Nstein recently launched its first solution designed for the corporate intelligence sector. This corporate public image monitoring solution is now being tested by certain customers. It is primarily designed to keep firms abreast, in real time, of what is being said about them and their competitors in the press, forums, blogs, etc. This information is collected from every possible external source, then analyzed and delivered in a synthesized form. "Information overload is getting increasingly difficult to manage. This cutting-edge solution has been designed to help decision-makers forecast and plan, rather than just reacting," added Mr. Girard. Soon, Nstein will also officially launch a customer satisfaction solution that will allow companies to take their clients' daily pulse in real time (from analyzing incoming emails, surveys, etc.).

"We believe that our dynamic approach to penetrating the homeland security and intelligence and corporate intelligence markets will continue to bear fruit. We are determined to become a leader in the management of global unstructured multilingual information, and are always on the lookout for partnerships and strategic acquisitions that will speed our growth," concluded Mr. Girard.

Other items ratified at the annual meeting

Composition of the Board of Directors for fiscal 2005
The Company is proud to announce the appointment of the following directors to its Board of Directors for the 2005 fiscal year: Messrs. Yves Bellemare, Rainer Busch, Richard Drouin, Pierre Ducros, Marc Dutil and Mario Girard.

Changes to the stock option plan
The shareholders also approved the proposed changes to the Company's stock option plan. The changes primarily involved increasing the number of shares reserved for option purposes to 18,640,000 (that is, less than 10% of the Company's issued and outstanding shares) and reducing the maximum term of the options from 10 to 7 years from the date granted. The TSX Venture Exchange and Autorité des marchés financiers had approved the proposed changes to the stock option plan beforehand.

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

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