City of Los Angeles Selects Nestor Traffic Systems for Red Light Enforcement Program.

PROVIDENCE, R.I. -- Nestor, Inc. (OTC BB: NESO) is pleased to announce that its subsidiary, Nestor Traffic Systems, Inc., has been selected as the preferred vendor by the City of Los Angeles Red Light Enforcement Selection Committee after an extensive proposal process. The award remains subject to formal City approvals and the negotiation and execution of a definitive agreement.

Nestor Traffic Systems is the provider of CrossingGuard(R) video-based red-light enforcement solutions and services. Through patented video technology, Nestor offers a turnkey solution that helps reduce red-light violations and increase traffic safety at intersections. In addition, CrossingGuard offers customers a unique Collision Avoidance(TM) safety feature that can actually help prevent intersection collisions. CrossingGuard's patented use of multiple videos allows officials to view events in the context in which they occurred, demonstrating a true commitment of fairness to the public. Services include: intersection evaluation, equipment installation, user training and support, citation issuance and payment processing, and account management. CrossingGuard(R) is a registered trademark of Nestor Traffic Systems, Inc. For more information, call [phone] 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 Exhibit 99.1 to our most recent annual report filed with the SEC. 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.