SOURCE: Nestor, Inc.

June 09, 2008 17:00 ET

Nestor Approved for Automated Enforcement Renewal & Expansion by Long-Time Customer Costa Mesa, California

City Report Heralds First Term Success

PROVIDENCE, RI--(Marketwire - June 9, 2008) - Nestor Traffic Systems, Inc., a wholly owned subsidiary of Nestor, Inc. (OTCBB: NEST), was selected by the City of Costa Mesa, California City Council to continue and expand the City's Red Light Camera Enforcement program after City research showed a dramatic reduction in accidents at Nestor-equipped intersections. "We have seen a 15.5% decrease in injury traffic collisions at all red light camera installed intersections and a 38.6% decrease in broadside collisions that often result in significant injuries," cites the May 28, 2008 City Council Agenda Report. Nestor's red light enforcement system "has proven to be a successful means of decreasing injury traffic collisions due to red light violators."

Clarence Davis, CEO of Nestor Traffic Systems, Inc., stated: "The City of Costa Mesa was pursued aggressively by some of the most prominent players in the automated enforcement industry. The City demonstrated a commitment to safety by moving forward with a proven safety partner. We are extremely pleased to continue our great relationship with the City of Costa Mesa."

The new Agreement doubles the number of intersections monitored by Nestor's CrossingGuard? Automated Red Light Enforcement system and extends the program term by 5 years. Costa Mesa, a Nestor partner since 2003, is a suburban community located southeast of Los Angeles in Orange County and has a population in excess of 110,000.

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.