Nstein Technologies announces major financing totalling CAN$10 million

2006-05-01

J.L. Albright Venture Partners and Solidarity Fund QFL provide Nstein powerful financial leverage

Montreal, Quebec, May 1, 2006 " Nstein Technologies Inc. "Nstein" (TSX-V: EIN) today announced a substantial financing in the amount of CAN$10 million in conjunction with J.L. Albright Venture Partners, a Canadian venture capital firm, and Solidarity Fund QFL. The transaction will be subscribed through the issuance of common shares priced at $0.085 per share, totalling 117.6 million shares; no warrants will be issued. Solidarity Fund QFL, an insider investor, will subscribe half of the shares issued, which represents 58.8 million shares. Following this private investment, Solidarity Fund QFL will hold 107.4 million shares, representing 35.1% of the shares issued and outstanding or 27.7% on a fully diluted basis. This financing should close within 45 days and is subject to customary closing conditions for this type of financing as well as the approval of current convertible note holders and regulatory authorities. Desjardins Securities is the lead agent of the transaction.

A powerful financial leverage

"This financing, which is the outcome of several months of work, will provide Nstein with an enviable position against the major players in the multilingual information access solutions" market," stated Mario Girard, Chairman and Chief Executive Officer of Nstein Technologies. "We are delighted that the Solidarity Fund QFL is once again demonstrating its confidence in us, and very proud to gain an investor of J.L. Albright's quality who will undoubtedly bring significant value to the development of this company. Their involvement confirms that Nstein has the technology, resources and expertise it needs to reach its goals."

"Over the last 5 years, search engine technologies such as Google have made great progress enabling internet users to conduct searches on virtually infinite sources of information. Although these tools are getting more powerful, users are still faced with the tedious task of manually sorting among thousands of results in order to find the information they are looking for. As these search engines evolve, it is expected that quality of results will be privileged over quantity by applying highly specialized text mining technologies. Thanks to its capabilities in analyzing structured and unstructured data, Nstein is extremely well positioned to become the leader in this emerging text mining market," said Pierre Donaldson, General Partner with J.L. Albright Venture Partners.

"Nstein gains a solid financial structure that will enable it to accelerate both its commercial and corporate development," stated Robert Barakett, Executive Vice President and Chief Financial Officer of Nstein Technologies. "Moreover, this financing process that we are completing will provide Nstein with a significantly improved visibility on Canadian and American financial markets that will definitely benefit the Company in the long term."

A new subscription-based platform

The Company plans to invest a portion of this sum in developing a new platform that will offer its powerful technology via an Internet subscription model (ASP model). Nstein's initial focus will be the financial services market, providing analysts with an early warning threat analysis system they can use to monitor and analyze comments (made in financial forums, reports and analyses, blogs and newswires) about the companies that make up their investment portfolios. Mr. Girard explained: "Global public health analysts are already leveraging our technology to detect the emergence of potential epidemics. We plan to provide financial analysts with the same powerful monitoring, early warning and analysis tools, applied to their field. The financial services market is just one of many markets that can use this type of platform. This financing means we can finally launch a project we've been working on for a long time. Of course, Nstein intends to continue to licence its software, offering customers a flexibility that is unique in the market."

Consolidation of the share capital

The Company currently has 188,612,660 common shares issued and outstanding (the "Shares"). The Company's management judges that the consolidation will allow it to better align its equity structure with other senior corporations in its sector. The consolidation will increase the visibility of Nstein's securities with potential investors and institutional accounts, and attain greater recognition for them in North American financial markets.

Accordingly, at the Annual General and Special Meeting of the Shareholders on May 23, 2006, shareholders will be asked to vote on a motion that authorizes share consolidation at an appropriate time, if and when the Board of Directors deems it advisable. The basis for consolidation will be determined at the sole discretion of the Company's Board, up to at most ten (10) common shares prior to consolidation per each (1) common share issued and outstanding following consolidation. Consolidation is subject to the approval of Nstein's shareholders and the TSX Venture Exchange. The Company will not change its name following consolidation.

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 source, in real time. Nstein's text mining and multilingual information access 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 e-publishing and homeland security & intelligence 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.

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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