Nestor Receives $6 Million Financing for CrossingGuard; EDS Fortifies Teaming Agreement with Equipment Lease Financing for Growing Number of Intersection Contracts
PROVIDENCE, R.I.--July 16, 2001--Nestor Traffic Systems, Inc. (NTS), an affiliate of Nestor, Inc. (OTC: NEST), today announced that the Company has secured from EDS a $6 million master lease financing agreement to support current and future installations of CrossingGuard(R), NTS' video-based automated red light enforcement solution. The EDS master lease financing agreement will accelerate CrossingGuard installations and build upon the April 2001 teaming agreement between NTS and EDS. EDS currently offers complete back-office citation processing and management services to NTS' future CrossingGuard customers."CrossingGuard's early successes and growing momentum translate into exceptional market potential for both companies," said Jerome Davis, EDS Business Process Management president for the Americas. "We believe that CrossingGuard's advanced video technology and enhanced safety features, combined with EDS' business processing expertise, is a winning solution for cities wishing to address the growing problem of red light running. This financing agreement allows us to accelerate our delivery, promote increased safety at the nation's intersections, and support Nestor's growth."
CrossingGuard is the industry's first video-based automated red light enforcement solution. It uses advanced image-processing technology to detect red light violations and record a full video sequence of the event. This complete violation video evidence serves as an objective eyewitness of what actually happened at the intersection, ensuring a level of fairness that demonstrates the City's commitment to the integrity of their traffic safety program. CrossingGuard is also the first solution to offer a direct safety benefit with its ability to help prevent intersection collisions. CrossingGuard's use of video cameras to detect and track vehicles as they approach an intersection allows the system to predict whether a vehicle is going to stop in time for the red light. If a violation is predicted, not only does CrossingGuard record and save images of each vehicle just before and during the violation, but it also sends a signal to the traffic controller to briefly extend the red light for cross traffic while the violator runs the light. CrossingGuard's video technology not only provides the most complete evidence of red light violations and a unique intersection safety feature, but its above-ground detection components eliminate the need for costly and disruptive construction that is associated with the installation of in-ground loops.
This $6 million lease financing commitment from EDS represents the second substantial financial commitment that NTS has secured this year. In January 2001, NTS announced the signing of an $8 million equity financing agreement with a group of independent investors.
"The initial capital requirements of each CrossingGuard installation is typical of this business model - which can be financially taxing to support multiple installation projects," said David Fox, Nestor's president and CEO. "EDS has quickly come onboard, offering their extensive resources to complement both our business development as well as delivery. As our customer base and backlog continues to grow, so does our market position and reputation in the industry."
CrossingGuard's market acceptance has been significant, with contracts in place for enforcement at more than 50 intersection approaches, and negotiations underway with several new customers. The EDS financing will support equipment leasing for the installation of over 100 CrossingGuard-equipped intersection approaches.
Insurance Institute for Highway Safety (IIHS) research reports that each year more than 800 people die and an estimated 200,000-plus are injured in crashes that involve red light running. More than half of those killed were pedestrians and occupants in other vehicles who were hit by red light runners. In April 2001, the IIHS released the results of a study that concluded that crashes, especially injury crashes, declined at intersections with red light cameras. The study also reported that drivers in communities with and without cameras favor their use.
About Nestor Traffic Systems
Nestor Traffic Systems, Inc., an affiliate of Nestor, Inc. and headquartered in Providence, RI, is an emerging leader in providing innovative, video-based monitoring systems and services for traffic management and safety. Its products incorporate Nestor's patented image-processing technology into intelligent, real-time solutions that promote traffic efficiency, intersection safety, and railway grade crossing monitoring. All products are sold direct and by selected partners worldwide. For more information, call 401-331-9640 or visit www.nestor.com
Certain information in this press release may include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
CrossingGuard is a registered trademark of Nestor Traffic Systems, Inc. All other company and product names are trademarks or registered trademarks of their respective companies.