Nstein announces its financial results for the second quarter of 2007

2007-08-09

Highlights:

• 104% increase in revenues compared to Q2 2006
• Continued strong revenue growth
• Acquisition of important North American and European accounts
• 87% reduction in EBITDA loss

Montreal, Quebec, August 9, 2007 - Nstein Technologies Inc. (TSX-V: EIN) today announced its results for the second quarter of 2007.

Nstein's revenues for the second quarter of 2007 reached $4.0 million, an increase of 104% over the $1.9 million recorded a year earlier. Nstein posted a loss before financial expenses, income taxes on earnings, depreciation, amortization, exchange loss and restructuring fees (EBITDA) of $0.1 million, compared to $1.1 million the year before, a reduction of 87%. The net loss amounted to $1.0 million or $0.03 per share, as opposed to $1.6 million or $0.08 per share for the second quarter of 2006. During the second quarter, Nstein incurred $0.5 million in non-recurring restructuring expenses, most of which were related to the departure of some executives and a founder of the Company.

"In the past few quarters, Nstein has been seeing a shift toward significant growth. The positive results of the second quarter of 2007 are further evidence of this trend. This can be directly attributed to the success of the Ntelligent Content Management (NCM) Suite among top press and media industry players," said Luc Filiatreault, President and CEO of Nstein Technologies.

Mr. Filiatreault added: "Nstein has focused intense effort on the marketing of its NCM Suite and as a result has inked a number of lucrative deals with leading media organizations in Canada, the U.S. and Europe. The signing of new clients such as Canoe.ca, La Dépêche du Midi, La Provence and other prominent U.S. and European publishers confirms just how much of a contribution Nstein solutions can make to the execution of corporate Web strategies of press and media organizations." 

Continued strong revenue growth
"Nstein is at a critical point in its history " and the future looks brighter than ever. The demand for Nstein products continues to be stronger and stronger, and revenues are on a steady upswing. The company is approaching the break-even point and expenditures and investments are stable", Filiatreault concluded.

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

About Nstein Technologies

Nstein Technologies (TSX-V: EIN) develops and markets leading-edge content management software for the media, publishing and entertainment industries. Its Ntelligent Content Management Suite enables the centralization, enrichment and publication of textual and rich media assets using advanced text mining. Nstein helps publishers significantly increase their content monetization and reduce their operational costs through cross media publishing and multichannel delivery. Nstein is headquartered in Montreal, Canada, with offices in the USA 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.

###

For more information:

Nstein Technologies Inc.:
Investor Relations

Bruno Martel
Chief Financial Officer
Nstein Technologies Inc.
Tel: 514 908-5406
bruno.martel@nstein.com