Nstein Announces the Closing of Financing

Oct 21, 2005

Nstein Technologies Inc., a provider of linguistic-based Business Intelligence solutions, has announced that it has signed a securities purchase agreement, which provides for a private placement of $4.1 million of senior secured convertible notes with certain institutional investors. The Company will use the net proceeds from the financing to repay certain debts and for general corporate purposes.

Kaufman Bros, L.P., an investment banking firm specializing in the sectors of communication, media, and technology acted as sole placement agent to the Company for the transaction. They will receive in compensation a cash commission of 7% of the net proceeds and 2,041,900 agents' warrants to exercise at a price of $0.16 per share. The warrants are valid for a two-year period.