Nestor Traffic Systems Launches Inaugural Safety Program in Florida

City of Sweetwater Selects Nestor After Extensive Competitive Bid Process

Nestor Traffic Systems, Inc., a wholly owned subsidiary of Nestor, Inc. (OTCBB: NEST), announced today that they were selected to advance traffic safety in the City of Sweetwater, Florida, just outside of Miami. "Nestor was selected for our Traffic Safety Camera program because, after careful evaluation and deliberation, it simply offers what we need, which is a proven system that deters unwanted driving behavior and promotes safety for all of our residents and visitors," stated Sweetwater Mayor Manuel L. Marono.

Cities from coast-to-coast are realizing a dramatic reduction in life threatening crashes at their most dangerous intersections with CrossingGuard®. CrossingGuard® delivers incontrovertible, multi-angled video evidence resulting in a better than 99% conviction rate.

"Faced with increasing traffic safety challenges, a growing number of Florida cities are seeking reliable and cost-effective enforcement tools. The City of Sweetwater carefully evaluated all of its options and selected Nestor and its CrossingGuard® system," stated Clarence A. Davis, Nestor CEO. "We welcome the City's commitment to safety and are pleased to support its traffic safety goals."

Nestor Traffic Systems provides automated traffic enforcement solutions to state and municipal governments. Nestor Traffic Systems is the exclusive North American distributor for the Vitronic PoliScanSpeed(TM) 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(TM) system minimizes the ambiguity and measuring errors associated with conventional photo speed enforcement systems. Nestor's CrossingGuard® red light enforcement system uses patented multiple, time-synchronized videos to capture comprehensive evidence of red light and speed violations. In addition, CrossingGuard® offers customers a unique Collision Avoidance(TM) safety feature that can help prevent intersection collisions. CrossingGuard® is a registered trademark of Nestor Traffic Systems, Inc. PoliScanSpeed(TM) is a trademark of Vitronic. For more information, call (401) 274-5658 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, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We may not meet the expectations disclosed in our forward-looking statements and investors should not place undue reliance on those 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, legal and legislative challenges to automated traffic enforcement, and other factors discussed in Risk Factors in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. Investors are advised to read Nestor's Annual Report, quarterly reports on Form 10-Q and current reports on Form 8-K filed after our most recent annual or quarterly report. The forward-looking statements in this letter represent our current views and we disclaim any obligation to update these forward-looking statements.

For more information, call (401) 274-5658 or visit www.nestor.com.