SOURCE: Nestor, Inc.

August 13, 2008 18:00 ET

Nestor, Inc. Announces Contract Extension and Expansion With Delaware Department of Transportation

PROVIDENCE, RI--(Marketwire - August 13, 2008) - Nestor, Inc. (OTCBB: NEST), a leading provider of advanced automated traffic enforcement solutions and services, announced today that its wholly owned subsidiary, Nestor Traffic Systems, Inc. ("NTS"), has entered into a contract extension and expansion with the Delaware Department of Transportation ("DelDOT") to continue supporting Delaware's Electronic Red Light Safety Program.

NTS has been providing services to DelDOT since 2004. With the contract extension and expansion, DelDOT has committed to an extension of three years plus a minimum of twenty additional approaches to be protected by NTS's patented CrossingGuard® system, which is based on advanced digital technology and provides unique safety features and advanced client support capabilities. The contract addendum will expand upon the past four years of improving intersection safety and reducing the number of red-light violations throughout the State of Delaware. Since 2004, 16 of the 20 intersections in Delaware that have CrossingGuard® installed have experienced a decrease in total crashes.

By entering into the contract addendum, DelDOT has illustrated its confidence that NTS is the only partner to assist DelDOT in its unequalled commitment to safety. Delaware is currently the only statewide red-light program in the nation. DelDOT firmly believes that NTS is the proven vendor of the highest level of technology coupled with an unrivaled commitment to making intersections safer and offering the best customer support in the industry. After working with NTS for four years, DelDOT recognizes that no other competitor could perform the kind of services with the level of excellence that NTS has consistently demonstrated.

"We are very pleased to continue our relationship with DelDOT. By entering into a contract extension and expansion with NTS, DelDOT has illustrated its commitment to ensuring the safety of its citizens and all those who drive upon its roads. We are honored to be a part of such a commitment and will continue to provide DelDOT with the best services and support possible," said Clarence A. Davis, NTS Chief Executive Officer.

NTS, through its CrossingGuard® product, will continue to provide DelDOT with the ability to capture multiple frames of red light violations, providing law enforcement officials with the ability to objectively review an event and the circumstances under which it occurred. With this level of fair and objective evidence, officials can be certain that events are reviewed in the proper context and with the highest level of integrity. CrossingGuard® has a less than three percent court challenge rate and a less than one percent overturn rate system-wide.

Nestor Traffic Systems provides automated traffic enforcement solutions to state and municipal governments. Our CrossingGuard® red light enforcement system uses patented multiple, time-synchronized videos to capture comprehensive evidence of red light violations. In addition, CrossingGuard® offers customers a unique Collision Avoidance™ safety feature that can help prevent intersection collisions. We also offer a video-based ViDAR™ speed detection and imaging system which uses non-detectable, passive video detection and enforces multiple, simultaneous violations bi-directionally. Nestor Traffic Systems is a distributor for the Vitronic PoliScanSpeed™ scanning LiDAR, capable of tracking multiple vehicles in multiple lanes simultaneously. CrossingGuard® and ViDAR™ are registered trademarks of Nestor Traffic Systems, Inc. PoliScanSpeed™ 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, 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, further approvals of contracted approaches, legal and legislative challenges to automated traffic enforcement, patent protection of our technology, and other factors discussed in Risk Factors in our most recent Annual Report on Form 10-K filed with the SEC. Investors are advised to read our Annual Report on Form 10-K, 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 included in this press release represent our current views and we specifically disclaim any obligation to update these forward-looking statements in the future.