Nstein announces its financial results for the third quarter of 2007



    
    Highlights:

    - 45% increase in revenues compared to Q3 2006
    - Growing number of European and North American clients
    - Working capital of $8.1 million
    - 84% reduction in EBITDA loss
    

    MONTREAL, Nov. 8 /CNW Telbec/ - Nstein Technologies Inc. (TSX-V: EIN)
today announced its results for the third quarter of 2007.
    Nstein's revenues in the third quarter reached $4.1 million, an increase
of 45% over the $2.8 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 $84,025,
compared to $536,526 the year before, a reduction of 84%. The net loss
amounted to $291,195 or $0.008 per share, as opposed to $1,043,755 or
$0.033 per share for the third quarter of 2006.
    "I'm pleased to report that Nstein is pursuing the execution of its
business plan and continuing to make important inroads into the e-publishing
market-as confirmed by the signing of contracts in Q3 with organizations such
as Gesca Digital, a subsidiary of Gesca, Canada's largest French news group;
News International, the UK subsidiary of News Corporation; and ImpreMedia, the
number-one Hispanic online and print news and information company in the US,"
said Luc Filiatreault, President and Chief Executive Officer of Nstein
Technologies. "By ramping up our prestigious client roster with 14 new major
media organizations signed since the beginning of 2007 and expanding our
relationship with existing clients such as Groupe Moniteur and Groupe La
Provence, we are further reinforcing Nstein's position in the market."
    During the third quarter, Nstein accelerated the deployment of the
required infrastructure for full-fledged customer delivery and customer care
processes and systems, thus ensuring that the Company can support its rapidly
growing client base. Also in the third quarter, Nstein concluded a $3-million
private placement that significantly increased the Company's working capital,
which now stands at $8.1 million.

    At the forefront of the e-publishing industry

    Nstein's focus on delivering the most comprehensive and innovative online
publishing solutions to newspapers, magazines and online content providers is
also reflected in the Company's new branding and website (www.nstein.com),
which incidentally was developed using Nstein's WCM (Web Content Management)
solution.
    "Our strategy at this point is clear: to rapidly become the dominant
player in powering online publishing. Media and press companies are currently
investing in their organizations to catch up with and recapture revenues from
growing online advertising budgets. Nstein provides a complete content
management framework to transition from a paper-centric to a dynamic digital
approach so that these organizations can fully leverage new online revenue
opportunities and better manage their digital assets," Filiatreault concluded.

    About Nstein Technologies Inc.

    Nstein Technologies (TSX-V: EIN) develops and markets multilingual
solutions that power online publishing for the most prestigious newspapers,
magazines, and content-driven organizations. Nstein's solutions generate new
revenue opportunities and reduce operational costs by enabling the
centralization, management and automated indexing of digital assets. Nstein
partners with clients to design a complete online strategy for success using
publishing industry best practices for the implementation of its Web Content
Management, Digital Asset Management and Text Mining Engine products.
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.


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Balance Sheets                        As at           As at
                                                September 30     December 31
                                                        2007            2006
                                                           $               $
                                                  (unaudited)
    -------------------------------------------------------------------------
    Assets

    Current assets
    Cash and cash equivalents                      6,237,846       2,367,125
    Short-term restricted cash                             -       1,859,799
    Term deposits                                    184,961         191,121
    Accounts receivable                            3,979,185       4,189,878
    Refundable tax credits                         1,163,707         780,267
    Work in progress                                 823,305         578,105
    Prepaid expenses                                 229,688         185,535
    Current portion of balance receivable
     on the sale of software licenses                      -         176,598
    -------------------------------------------------------------------------
                                                  12,618,692      10,328,428

    Property, plant and equipment                    445,443         455,902
    Intangible assets                              1,250,756       1,554,998
    Deferred financing expenses                            -          67,074
    Goodwill                                       5,641,574       5,641,574
    -------------------------------------------------------------------------
                                                  19,956,465      18,047,976
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current liabilities
    Bank loans                                       473,280               -
    Accounts payable and accrued liabilities       3,126,061       3,726,835
    Deferred revenues                                565,294         655,896
    Current portion of long-term debt                357,324       2,121,927
    -------------------------------------------------------------------------
                                                   4,521,959       6,504,658

    Long-term debt                                   850,574       1,074,847
    -------------------------------------------------------------------------
                                                   5,372,533       7,579,505
    -------------------------------------------------------------------------

    Shareholders' Equity

    Share capital                                 45,246,907      40,178,085
    Other equity components                        2,974,491       2,269,836
    Contributed surplus                              813,921         532,143
    Deficit                                      (34,451,387)    (32,511,593)
    -------------------------------------------------------------------------
                                                  14,583,932      10,468,471
    -------------------------------------------------------------------------
                                                  19,956,465      18,047,976
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    NSTEIN TECHNOLOGIES INC.
    -------------------------------------------------------------------------
    Consolidated Statements      Three months ending      Nine months ending
    of Earnings and Deficit          September 30             September 30
                                    2007        2006        2007        2006
                                       $           $           $           $
                              (unaudited) (unaudited) (unaudited) (unaudited)
    -------------------------------------------------------------------------
    Revenues                   4,092,092   2,814,214  11,903,694   6,828,779
    Cost of sales, net of
     tax credits               1,818,210   1,300,780   5,347,099   3,775,790
    -------------------------------------------------------------------------
                               2,273,882   1,513,434   6,556,595   3,052,989
    -------------------------------------------------------------------------
    Expenses
    Selling and
     administrative            1,788,966   1,591,199   5,364,109   4,192,174
    Research and development,
     net of tax credits          568,941     457,761   1,615,351   1,343,882
    Depreciation of property,
     plant and equipment          47,373      37,225     139,399     109,368
    Amortization of intangible
     assets                      109,816      73,927     330,686     222,624
    Exchange loss (gain)         (12,054)     (6,776)     32,012    (128,758)
    Financial expenses            62,035     403,853     526,591   1,509,741
    Restructuring fees                 -           -     488,241           -
    -------------------------------------------------------------------------
                               2 565 077   2 557 189   8 496 389   7 249 031

    -------------------------------------------------------------------------
    Net loss for the period      291,195   1,043,755   1,939,794   4,196,042

    Deficit - Beginning of
     period                   34,160,192  30,829,508  32,511,593  27,677,221
    -------------------------------------------------------------------------
    Deficit - End of period   34,451,387  31,873,263  34,451,387  31,873,263
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted net
     loss per share                0.008       0.033       0.054       0.176

    Basic and diluted weighted
     average number of shares
     outstanding              37,541,375  31,436,986  35,666,865  23,829,950
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    NSTEIN TECHNOLOGIES INC.
    -------------------------------------------------------------------------
    Consolidated Statements      Three months ending      Nine months ending
    of Cash Flows                    September 30             September 30
                                    2007        2006        2007        2006
                                       $           $           $           $
                              (unaudited) (unaudited) (unaudited) (unaudited)
    -------------------------------------------------------------------------

    Cash flows from operating
     activities
      Loss for the period       (291,195) (1,043,755) (1,939,794) (4,196,042)
    Items not affecting cash
     and cash equivalents
      Interest capitalized on
       long-term debt             14,360      13,245      43,813     194,448
       Unrealized exchange
        loss (gain)               (1,530)     20,860      (5,413)    (78,672)
       Depreciation of
        property, plant and
        equipment                 47,373      37,225     139,399     109,368
       Amortization of
        intangible assets        109,816      73,927     330,686     222,624
       Amortization of
        deferred financing
        expenses                   5,692      68,595      67,074     224,613
       Stock-based compensation
        costs                     85,874     111,413     253,864     285,951
       Costs related to the
        employee stock purchase
        plan                      11,368       1,737      30,957       1,737
    -------------------------------------------------------------------------
                                 (18,242)   (716,753) (1,079,414) (3,235,973)
    -------------------------------------------------------------------------
    Change in non-cash
     operating working
     capital items
      Accounts receivable        222,530    (644,893)    210,693    (793,302)
      Refundable tax credits    (231,498)     75,761    (383,440)    (34,683)
      Work in progress           (88,610)     85,193    (245,200)    (10,509)
      Prepaid expenses            21,506      39,708     (44,153)    (25,352)
      Balance receivable on
       the sale of software
       licenses                        -      (2,698)    176,598     177,468
       Accounts payable and
        accrued liabilities      (90,537)     15,801    (600,772)     74,752
       Deferred revenues         (29,592)    183,892     (90,602)    195,772
    -------------------------------------------------------------------------
                                (196,201)   (247,236)   (976,876)   (415,854)
    -------------------------------------------------------------------------
                                (214,443)   (963,989) (2,056,290) (3,651,827)
    -------------------------------------------------------------------------
    Cash flows from financing
     activities
    Variation in bank loans            -    (150,000)    473,280    (248,952)
    Long-term debt                     -           -           -   1,300,000
    Payments on long-term
     debt                       (432,783)   (454,667) (1,139,728) (2,223,126)
    Deferred financing
     expenses                          -           -           -     (92,213)
    Issuance of
     common shares,
     net of issue expenses     2,982,642       1,737   4,882,885   9,279,598
    -------------------------------------------------------------------------
                               2,549,859    (602,930)  4,216,437   8,015,307
    -------------------------------------------------------------------------
    Cash flows from investing
     activities
    Variation in term
     deposits                    (11,341)          -       6,160           -
    Variation in short-term
     restricted cash             401,904           -   1,859,799  (2,150,927)
    Additions to property,
     plant and equipment         (60,811)    (14,674)   (129,817)    (77,160)
    Additions to intangible
     assets                       (7,387)     (2,620)    (26,446)     (8,486)
    Proceeds from the sale
     of property, plant and
     equipment                         -           -         878           -
    -------------------------------------------------------------------------
                                 322,365     (17,294)  1,710,574  (2,236,573)
    -------------------------------------------------------------------------
    Net change in cash and
     cash equivalents          2,657,781  (1,584,213)  3,870,721   2,126,907
    Cash and cash
     equivalents -
     Beginning of period       3,580,065   5,639,838   2,367,125   1,928,718
    Cash and cash
     equivalents - End of
     period                    6,237,846   4,055,625   6,237,846   4,055,625
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00014563EF




For further information:

For further information: Investor Relations: Bruno Martel, Chief
Financial Officer, Nstein Technologies Inc., (514) 908-5406,
bruno.martel@nstein.com; Media: Rina Marchand, Marketing Manager, Nstein
Technologies Inc., (514) 908-5406, rina.marchand@nstein.com

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NSTEIN TECHNOLOGIES INC.

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