Montreal – November 28, 2003 – Nstein Technologies Inc. (TSX-V:EIN), recorded a loss of $445,350 or $0.004 per share, as compared with a loss of $1,353,497 or $0.013 per share for the same quarter last year, representing an amelioration of 67%. During the nine-month period ending September 30, 2003, the loss totalled $1,896,010 compared to $4,242,263 for the same period in 2002, representing an amelioration of 55%.

The Company earned revenues of $307,155 during the three-month period ending September 30, 2003, compared to $263,768 for the same period last year, representing a 16% increase. Income recorded in the third quarter of 2003 is attributable to maintenance services provided to current customers and to the delivery of the new Knowledge Base Manager module to some of those clients. Nstein also generated income within the framework of pilot projects aiming at demonstrating the efficiency of its tools with important customers.

“Nstein’s increase in deal volume this quarter is directly attributed to its customer acquisition strategy” comments Mario Girard, Nstein’s Chairman and Chief Executive Officer. He adds: “This strategy will enable our customers to quantify their return on investment, justifying the expense of the full-scale implementation. Let’s also mention that Nstein keeps a track record of success in transforming pilots into full scale implementations. The Company continues to have a very strong backing from its investors as evidenced by the recent commitment of an additional $2 million investment by the Solidarity Fund QFL and a loan of $2.25 million authorized by the Bank of Montreal and Investissement Québec. These funds come at a very opportune time for Nstein, assuring the sustainability of the company’s current momentum and enabling Nstein to fulfill its corporate objectives“.

Operating Expenses

Operating, selling and administrative expenses amounted to $583,172 during the third quarter of 2003, a 47% amelioration from the third quarter of 2002, when they stood at $1,102,150. Meanwhile, research and development expenses totalled $425,121 for the three-month period ended September 30, 2003, a reduction from last year when they totalled $646,749. These cost reductions result from a program initiated during the fourth quarter of 2002. During the third quarter, the Company received $221,125 related to research and development tax credits for the year 2002. Since these tax credits had not been accounted for in 2002 due to the uncertainty surrounding their realization, the amount of $221,125 was included in the results of the third quarter of 2003.

Financial Situation and Cash Flow

As at September 30, 2003, current assets were $2.1 million compared to $4.6 million as at December 31, 2002. Current liabilities reached $1.1 million compared with $1.8 million as at December 31, 2002. Also at the end of the quarter, cash and cash equivalents stood at $1.1 million compared to $3.3 million as at December 31, 2002. Nstein’s long-term debt was $91,858 compared to $129,963 as at December 31, 2002.


About Nstein Technologies 

Nstein Technologies develops and markets content management indexing software and solutions that solve mission-critical business problems. Nstein maximizes the value of its customer’s information assets within the e-publishing, legal, government and enterprise sectors. Nstein’s organization, navigation and retrieval software creates immediate and substantial ROI via significant new revenue streams, productivity and efficiency gains. Nstein is headquartered in Montreal, Canada with operations in Boston, Philadelphia, San Francisco and Washington DC. For further information please visit www.nstein.com

• The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
• This news release includes forward-looking statements that are based on certain assumptions and reflect Nstein’s current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in Nstein’s materials filed with the securities regulatory authorities in Canada from time to time. Nstein disclaims any intention or obligation to update or revise any forward-looking statements.

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