Nestor Opens Offices in California, Georgia and Florida; NTS Broadens Market Presence in Video-Based Enforcement and Safety

    PROVIDENCE, R.I.--July 30, 2001--Nestor Traffic Systems, Inc. (NTS), an affiliate of Nestor, Inc. (OTC: NEST), today announced that the Company has established local offices in San Diego (CA), Athens (GA), and Ponta Vedra Beach (FL). This expansion reflects the nationwide momentum that has been building for the Company's video-based intersection and grade crossing safety solutions. NTS applies its patented video image-processing technology to applications that automate red light enforcement and improve intersection safety, as well as monitoring and detection capabilities that identify risk factors that impact safety at highway-rail grade crossings. NTS' products have been selected by law enforcement agencies, city governments and state departments of transportation in California, Florida, Illinois, Iowa, Kansas, Rhode Island and Virginia.
    "A growing number of communities across the county are realizing the safety benefits of our CrossingGuard(R) and Rail CrossingGuard programs," said David Fox, NTS' president and CEO. "With an expanding prospect and customer base, we needed to establish a local presence for dedicated expertise, service and support. These new offices will also contribute to the promotion of our advanced video technology to emerging markets nationwide."
    The new San Diego office is supporting the installation of CrossingGuard at multiple intersections in a growing number of cities in California. A five-crossing installation of Rail CrossingGuard for the Florida Department of Transportation is being managed and supported by the new Ponta Verdra Beach, FL office. The Georgia office is actively promoting CrossingGuard's advanced features and safety benefits to cities eager to initiate red-light camera safety programs under automated-enforcement legislation that has recently passed in Georgia and is pending in several southeastern states.
    CrossingGuard, the industry's first video-based solution for automated red light enforcement, is being recognized as the next generation of automated enforcement because of its unique features and capabilities. CrossingGuard uses video to detect and record red-light violations, to transmit digital images electronically, and to issue citations. Its advanced video technology offers the most comprehensive and objective evidence of red-light violations by capturing a full video sequence that serves as an instant replay of what actually happened at the intersection. It is also the first solution to offer a safety-enhancing feature that can actually help to prevent intersection collisions.
    Rail CrossingGuard applies NTS' advanced video technology to highway-rail crossing safety by automating the detection of a variety of grade-crossing conditions, including vehicle volume and train passage, the status of rail-crossing gates and signals, and grade-crossing violations. Information gathered can assist rail officials in determining crossing signal and gate integrity and operational status, allowing them to make proactive changes or repairs that will increase the safety of the crossing. Such capabilities are proving essential to grade-crossing safety initiatives, as more high-speed rail corridors and quiet zones are established and as freight- and passenger-train volumes increase.

    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.