Nstein announces its financial results for the second quarter of 2007



    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, Aug. 9 /CNW Telbec/ - 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.

    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.


    NSTEIN TECHNOLOGIES INC.

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

    Current assets
    Cash and cash equivalents                        3,580,065     2,367,125
    Short-term restricted cash                         401,904     1,859,799
    Term deposits                                      173,620       191,121
    Accounts receivable                              4,201,715     4,189,878
    Refundable tax credits                             932,209       780,267
    Work in progress                                   734,695       578,105
    Prepaid expenses                                   251,194       185,535
    Current portion of balance receivable
     on the sale of software licenses                        -       176,598
    -------------------------------------------------------------------------
                                                    10,275,402    10,328,428

    Property, plant and equipment                      432,005       455,902
    Intangible assets                                1,353,185     1,554,998
    Deferred financing expenses                          5,692        67,074
    Goodwill                                         5,641,574     5,641,574
    -------------------------------------------------------------------------
                                                    17,707,858    18,047,976
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current liabilities
    Bank loans                                         473,280             -
    Accounts payable and accrued liabilities         3,216,598     3,726,835
    Deferred revenues                                  594,886       655,896
    Current portion of long-term debt                  907,546     2,121,927
    -------------------------------------------------------------------------
                                                     5,192,310     6,504,658

    Long-term debt                                     910,632     1,074,847
    -------------------------------------------------------------------------
                                                     6,102,942     7,579,505
    -------------------------------------------------------------------------

    Shareholders' Equity

    Share capital                                   42,795,138    40,178,085
    Other equity components                          2,284,087     2,269,836
    Contributed surplus                                685,883       532,143
    Deficit                                        (34,160,192)  (32,511,593)
    -------------------------------------------------------------------------
                                                    11,604,916    10,468,471
    -------------------------------------------------------------------------
                                                    17,707,858    18,047,976
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Statements      Three months ending       Six months ending
     of Earnings and Deficit                 June 30                 June 30
                                    2007        2006        2007        2006
                                       $           $           $           $
                              (unaudited) (unaudited) (unaudited) (unaudited)
    -------------------------------------------------------------------------
    Revenues                   4,007,729   1,961,173   7,811,603   4,014,565
    Cost of sales              1,759,767   1,353,299   3,615,115   2,523,178
    -------------------------------------------------------------------------
                               2,247,962     607,874   4,196,488   1,491,387
    -------------------------------------------------------------------------

    Expenses
    Selling and
     administrative            1,789,186   1,358,160   3,575,144   2,600,975
    Research and development     708,091     544,717   1,170,784   1,101,786
    Research and development
     tax credits and other
     credits                    (105,000)   (155,000)   (210,600)   (263,833)
    Depreciation of property,
     plant and equipment          48,876      36,553      92,026      72,143
    Amortization of
     intangible assets           110,276     101,677     220,870     148,697
    Exchange loss (gain)          51,701    (135,407)     44,066    (121,982)
    Financial expenses           166,594     536,583     464,556   1,105,888
    Restructuring fees           488,241           -     488,241           -

                               3,257,965   2,287,283    5,845,087  4,643,674
    -------------------------------------------------------------------------

    Net loss for the period    1,010,003   1,679,409    1,648,599  3,152,287


    Deficit - Beginning of
     period                   33,150,189  29,150,099  32,511,593  27,677,221
    -------------------------------------------------------------------------

    Deficit - End of period   34,160,192  30,829,508  34,160,192  30,829,508
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted net
     loss per share                0.028       0.079       0.047       0.158

    Basic and diluted
     weighted average
     number of shares
     outstanding              35,862,431  21,171,621  34,708,782  19,941,909
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    NSTEIN TECHNOLOGIES INC.

    -------------------------------------------------------------------------
    Consolidated Statements      Three months ending       Six months ending
     of Cash Flows                           June 30                 June 30
                                    2007        2006        2007        2006
                                       $           $           $           $
                              (unaudited) (unaudited) (unaudited) (unaudited)
    -------------------------------------------------------------------------
    Cash flows from operating
     activities
    Loss for the period       (1,010,003) (1,679,409) (1,648,599) (3,152,287)
    Items not affecting cash
     and cash equivalents
      Interest capitalized on
       long-term debt             16,192      17,491      29,453     181,203
      Unrealized exchange loss    (3,942)    (112,732)    (3,883)    (99,532)
      Depreciation of property,
       plant and equipment        48,876       36,553     92,026      72,143
      Amortization of
       intangible assets         110,276      101,677    220,870     148,697
      Amortization of deferred
       financing expenses         22,999       72,242     61,382     156,018
      Stock-based compensation
       costs                     129,395       95,055    167,990     174,538
      Costs related to the
       employee stock purchase
       plan                        9,302           -      19,589           -
    -------------------------------------------------------------------------
                                (676,905) (1,469,123) (1,061,172) (2,519,220)
    -------------------------------------------------------------------------

    Change in non-cash
     operating working capital
     items
      Accounts receivable       (181,041)    246,894     (11,837)   (148,409)
      Refundable tax credits     (95,339)     35,455    (151,942)   (110,444)
      Work in progress           129,200      28,567    (156,590)    (95,702)
      Prepaid expenses            25,428     (41,551)    (65,659)    (65,060)
      Balance receivable on
       the sale of software
       licenses                        -     184,160     176,598     180,166
      Accounts payable and
       accrued liabilities      (409,767)   (112,327)   (510,236)     58,951
      Deferred revenues            6,490     (61,615)    (61,010)     11,880
    -------------------------------------------------------------------------
                                (525,029)    279,583    (780,676)   (168,618)
    -------------------------------------------------------------------------
                              (1,201,934) (1,189,540) (1,841,848) (2,687,838)
    -------------------------------------------------------------------------

    Cash flows from
     financing activities
    Variation in bank loans      473,280           -     473,280     (98,952)
    Long-term debt                     -     900,000           -   1,300,000
    Payments on
     long-term debt             (411,171) (1,564,578)   (706,945) (1,768,459)
    Deferred financing
     expenses                          -     (92,213)          -     (92,213)
    Issuance of common
     shares, net of issue
     expenses                  1,889,955   9,277,861   1,900,243   9,277,861
    -------------------------------------------------------------------------
                               1,952,064   8,521,070   1,666,578   8,618,237
    -------------------------------------------------------------------------

    Cash flows from
     investing activities
    Variation in term
     deposits                     23,495          -      17,501           -
    Variation in short-term
     restricted cash             737,234 (2,150,927)  1,457,895  (2,150,927)
    Additions to property,
     plant and equipment         (47,692)   (48,311)    (69,006)    (62,486)
    Additions to intangible
     assets                      (13,083)    (2,310)    (19,058)     (5,866)
    Proceeds from the sale
     of property, plant
     and equipment                   878          -         878           -
    -------------------------------------------------------------------------
                                 700,832 (2,201,548)  1,388,210  (2,219,279)
    -------------------------------------------------------------------------

    Net change in cash and
     cash equivalents          1,450,962  5,129,982   1,212,940   3,711,120
    Cash and cash equivalents
     - Beginning of period     2,129,103    509,856   2,367,125   1,928,718
    Cash and cash equivalents
     - End of period           3,580,065  5,639,838   3,580,065   5,639,838
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %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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