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Murrieta, California City Council Approves a Five-Year Contract With Nestor Traffic Systems

Nestor, Inc. (NASDAQ: NEST), the parent of Nestor Traffic Systems, Inc., a leading provider of advanced traffic safety solutions, is pleased to announce that on October 18, the City Council of Murrieta, California, population 85,000, authorized its City Manager to enter into a 5-year contract with Nestor Traffic Systems for the installation, maintenance, and operation of CrossingGuard®, Nestor's patented video based automated red light camera system. Four approaches are planned to start Murrieta's automated red light photo enforcement program.

Nigel P. Hebborn, Chief Executive Officer of Nestor Traffic Systems, Inc., stated, "We are pleased with the City's approval. By choosing the only system that provides multiple synchronized videos of red light violations, the City can reassure its drivers that citations are not issued unless they are warranted. In addition to demonstrating the City's commitment to fairness, we believe that Nestor's comprehensive evidence packages ensure that courts are not burdened with the larger volumes of contested citations often associated with competing systems."

Officer Jay Froboese, Traffic Investigator, and Administrator for the new Nestor Red Light Program for the City of Murrieta, stated, "We are pleased that our City Council has authorized us to move forward with this program. We are the first city in Southwest Riverside County to move forward with this technology. As a community oriented police department, we are very concerned with the safety of drivers in the City of Murrieta. CrossingGuard is another tool that our police department can use to improve intersection safety. We hope that implementing this program will send a strong message that red light running is not acceptable in our community."

Nestor Traffic Systems (NTS) provides automated traffic safety solutions to state and municipal governments. Our goal is to deliver effective solutions for intersection and roadway safety. We currently offer CrossingGuard®, a turnkey solution which helps customers reduce red light running and intersection collisions through automated enforcement, and PoliscanSpeed, a laser-based photo speed enforcement system designed to reduce the number of speeding vehicles on public roadways, including school zones and construction zones.

Our CrossingGuard system uses multiple, time-synchronized videos to capture comprehensive evidence of red light violations. CrossingGuard is the only available system that delivers synchronized front and rear videos, providing officials with the full context of each violation, enabling accurate, objective decisions. Additionally, CrossingGuard offers customers a unique Collision Avoidance(TM) safety feature that can help prevent intersection collisions. Our CrossingGuard services include: intersection evaluation, equipment installation, user training and support, citation issuance and payment processing, and account management.

We are the exclusive North American distributor for Vitronic's PoliscanSpeed, the industry's only scanning LIDAR, capable of tracking multiple vehicles in multiple lanes, simultaneously. An industry first, the scanning LIDAR mobile speed enforcement system is an innovative solution for digital speed detection and image recording. The scanning capability of the PoliscanSpeed system minimizes the ambiguity and measuring errors associated with conventional photo speed enforcement systems.

CrossingGuard® is a registered trademark of Nestor Traffic Systems, Inc. PoliscanSpeed is a registered trademark of Vitronic. For more information, call (401) 434-5522 or visit www.nestor.com.

Statements in this press release about future expectations, plans and prospects for Nestor, including statements containing the words "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We may not achieve the plans, intentions or expectations disclosed in our forward-looking statements and investors should not place undue reliance on our forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including: market acceptance of our products, competition, patent protection of our technology, and other factors discussed in Risk Factors That May Affect Our Results in our most recent Quarterly Report on Form 10-Q filed with the SEC. Investors are advised to read Nestor's Annual Report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements included in this press release represent our current views and we specifically disclaim any obligation to update these forward-looking statements in the future.

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