SOURCE: Nestor, Inc.

December 27, 2006 10:00 ET

Cactus, Texas Signs 5-Year Contract With Nestor Traffic Systems for Mobile Speed Enforcement

PROVIDENCE, RI -- (MARKET WIRE) -- December 27, 2006 -- Nestor Traffic Systems, Inc., a subsidiary of Nestor, Inc. (NASDAQ: NEST), a leading provider of advanced automated traffic enforcement solutions and services, announced that the City of Cactus, Texas has entered into a 5-year contract with Nestor for the provision of one mobile speed enforcement unit for at least thirty hours per month and related services. The unit will assist officers in identifying and obtaining supporting evidence on vehicles exceeding safe speed thresholds in high risk locations around the community. This tool has been effective in reducing average speed rates in school, construction, and pedestrian crossing zones. The contract also allows the City of Cactus to use data from the speed system to issue citations for infractions other than speeding.

"Nestor's PoliScanSpeed™ speed enforcement system will provide Cactus with an effective and reliable tool to improve safety. This technology coupled with our customer service creates a dynamic and responsive system that will complement Cactus' ongoing traffic safety program," said Nestor Traffic Systems Chief Executive Officer William B. Danzell. "We are very pleased that the City selected Nestor to be part of these efforts."

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™ scanning LiDAR, capable of tracking multiple vehicles in multiple lanes simultaneously. Our 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™ safety feature that can help prevent intersection collisions. CrossingGuard® is a registered trademark of Nestor Traffic Systems, Inc. PoliScanSpeed™ is a trademark of Vitronic. For more information, call (401) 274-5658 or visit

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, our ability to operate with reduced staff and capitalization, 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.