Montreal, (Quebec), Feb. 6, 2002 – Nstein Technologies Inc. “Nstein” (TSX: EIN) saw its income reach $1.4 million during the 2001 fiscal year, compared to fiscal 2000, the Company’s start-up year in which no income was generated. Nstein’s income was generated through sales of its nserver™ software, notably to CEDROM-SNi, United Press International (UPI), the American Psychological Association (APA), and Bizjournals.com

The net loss for the 2001 fiscal year was $4.4 million, or $0.05 per share, compared to $6.0 million for the previous year, or $0.08 per share. This is a decrease of 26.5%. With respect to expenses, the operating, selling and administrative costs added up to $3.5 million in 2001, a slight increase over 2000 when these expenses totalled $3.1 million. Research and development costs were $1.9 million during the last fiscal year, compared to $3.0 million a year earlier.

“I’m pleased to state that we have met our financial goals for 2001 due to our success in penetrating the U.S. market. We have kept general expenses to almost the same level as in 2000 in spite of the fact that we greatly intensified our marketing efforts in 2001. Furthermore, because our technology reached the commercial stage early in the fiscal year, we were able to reduce our research and development (R&D) costs. Our R&D activities are now directed at adding new applications to our nserver™ software in order to meet the expanding needs of the e-publshing market,” said Mr. Mario Girard, Nstein’s Chairman of the Board and Chief Executive Officer.

Cash and cash equivalents totalled $3.6 million as of Dec. 31, 2001, compared to $6.6 million the previous year. The long-term debt stood at $1.0 million at the end of fiscal 2001, whereas it reached $2.0 million at the same date in 2000. The short-term debt stood at $1.4 million as of Dec. 31, 2001, compared to $1.3 million a year earlier.

CAI Solutions Leader

Nstein ended the 2001 fiscal year strongly positioned to become the global leader of Computer-Aided Indexing (CAI) software solutions for the fast-growing e-publishing industry.

“Nstein established a strong credibility in the e-publishing industry in 2001. The results of two thorough independent competitive analyses clearly demonstrated that Nstein possess a decisive technology advantage in the market. These two evaluations each compared not less than 12 competing solutions. With this solid foundation, we are poised to become the undisputed world leader in the CAI market for the e-publishing industry in 2002,” stated Mr. Girard.

As a direct result of these studies, Nstein was able to secure sales in the United States with UPI, the APA, and Bizjournals.com. Bizjournals is a division of American City Business Journals, Inc., an important publisher of metropolitan business dailies in North America.

Arrival of Randall Marcinko: a very valuable asset

The arrival of Randy Marcinko to the position of President and Chief Operating Officer of Nstein in January 2002 will prove a very valuable asset for the company. “Randy will play a key role in Nstein’s development. Thanks to his unique and considerable experience in the information, e-publishing and online industries, Randy will provide Nstein with powerful leverage in its sales and marketing efforts,” stated Mr. Girard.

Over the past 20 years, Mr. Marcinko has founded and successfully built several companies in the information industry, which has enabled him to build a vast network of contacts and an exhaustive knowledge of the markets targeted by Nstein - particularly in the United States.

“We have a high quality team and technology advantage that affords us a significant competitive edge. Our targeted marketing strategy will enable the Company to obtain quick results. All these success factors are now in place to make 2002 a solid year for Nstein,” commented Mr. Girard.

About Nstein Technologies

Nstein Technologies is a public company listed on the TSX Venture Exchange. The company develops and markets innovative content management software solutions based on its patented Linguistic DNA™ technology—which combines the strengths of linguistic and statistical analysis with artificial intelligence. Nstein’s nserver™ software solution automates time-consuming and complex tasks such as content classification, XML tagging and summarization. The company’s products enable a significant leap in effectiveness and cost reduction for content management, e-publishing, and
on-line companies.For further information on Nstein Technologies Inc., please visit 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.: