SOURCE: Nestor, Inc.

September 09, 2008 10:00 ET

Nestor Traffic Systems Selected for Major Sole Source Contract in Manteca, California

Unique Traffic Enforcement & Crash Prevention Technology Key

PROVIDENCE, RI--(Marketwire - September 9, 2008) - Nestor Traffic Systems, Inc., a wholly owned subsidiary of Nestor, Inc. (OTCBB: NEST), announced today that it was selected to provide red light cameras at up to 10 intersections in the fast-growing City of Manteca, located in California's Central Valley region. Nestor's CrossingGuard® Automated Red Light Enforcement system's unique tracking technology makes it the only system capable of accurately enforcing the low speed or "rolling red" violations that plague Manteca. In May, Nestor studied six (6) Manteca intersections considered problematic by the local police department. The tests concluded that violations -- especially rolling right turn violations -- were dangerously high.

Nestor will further protect drivers in the 64,000 resident City of Manteca with a unique proactive crash prevention system called Collision Avoidance™. Collision Avoidance™ prevents crashes by holding the all-red signal phase when a crash is imminent, keeping innocent drivers out of harms way. "I really like the Collision Avoidance system," stated Manteca Councilman John Harris in a recent article in the Manteca Bulletin. Collision Avoidance™ is the only proven crash prevention system of its kind now installed in the U.S. in places like San Bernardino, California.

"Nestor brings top quality public safety traffic technology to support Manteca's positive growth. Our systems have the proven ability to reduce accidents and deter dangerous driving. We are ready to put our talent to work for Manteca," stated Nestor CEO Clarence A. Davis.

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. 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™ 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™ 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 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 (866) 434-5522 or visit www.nestor.com.