Nstein announces record sales for the third quarter of 2006

2006-11-09

Montreal, Quebec, November 9, 2006 - Nstein Technologies Inc. (TSX-V: EIN), today announced its financial results for the third quarter ended September 30, 2006.

Nstein's revenues in the third quarter of 2006 reached $2.8 million, an increase of 10% over the revenues in the third quarter of last year and 43% over those of the second quarter of 2006. For the third quarter of 2006, Nstein posted a loss before financial expenses, exchange gain, income taxes on earnings, depreciation and amortization (EBITDA) of $0.5 million, compared to $0.6 million the year before. The loss amounted to $1.0 million or $0.033 per share in the third quarter of 2006, as opposed to $1.2 million or $0.064 last year.

For the nine-month period ended September 30, 2006, revenues totalled $6.8 million, as opposed to $7.6 million a year earlier, representing a 10% decrease. The Company posted a negative EBITDA of $2.5 million, compared to $1.4 million for the same period in 2005. The loss totalled $4.2 million or $0.176 per share for the first nine months of 2006, as opposed to $2.9 million or $0.154 per share last year.

"These record sales are attributed to the increased level of activity in the e-publishing market. As publishers are seeing a rapid shift of their advertising revenues from print to digital media, Nstein's solutions provide this marketplace an easy way to transition from a print-based to a dynamic digital platform," said Mario Girard, Chairman and Chief Executive Officer of Nstein Technologies.

Mr. Girard added: "During this quarter, we signed a major deal with Corbis, a Seattle-based company founded by Bill Gates, Microsoft's chairman. More recently, we've licensed our new Ntelligent Content Management Solution (NCM) to the Transcontinental Media Group, which represents another acknowledgement of market's receptiveness to Nstein's solutions."

Outlook

Nstein plans to further develop and market its NCM suite towards e-publishing enterprises from the media and entertainment industry. Nstein also plans to offer the same innovative solution to organizations that need to manage and publish large volumes of content more efficiently to the benefit of their clients and users, whether it is on their own web sites, intranets, extranets or portals.

"The results of this third quarter are very encouraging and confirm that Nstein's commercial and corporate strategies have been on the right track," Mr. Girard concluded.

About Nstein Technologies

Nstein Technologies (TSX-V: EIN) develops and markets leading-edge software solutions for analyzing vast amounts of unstructured data in virtually any language. Nstein's text mining and information access solutions transform reactive decision-making into a high-impact proactive " and even predictive " process. 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
Chief Financial Officer
Nstein Technologies Inc.
Tel: 514 908-5406
bruno.martel@nstein.com