Red Light and RR Crossing Monitoring Company Nestor Appoints Douglas Reilly Chief Operating Officer

    PROVIDENCE, R.I.--Jan. 14, 2002--Nestor, Inc. (OTC: NEST) today announced the appointment of Dr. Douglas L. Reilly to chief operating officer. Reilly will lead the engineering, operations and sales divisions in on-going product development, installation, and promotion of the Company's suite of intelligent, video-based automated red light enforcement and grade crossing monitoring systems.
    Having been with Nestor since its inception in 1984, Dr. Reilly has been an integral member of the Company's management team. He has played a significant role in the development of many of the Company's products, from the initial tools for character recognition, the Ni1000 neural network chip and PRISM(R) fraud detection systems to TrafficVision(R) for highway monitoring and CrossingGuard(R), Nestor's video-based automated red light enforcement and intersection safety system. Before this appointment, Dr. Reilly served as senior vice president for strategic analysis and technology. In this capacity, he played a leading role in the initiatives that launched the Company's traffic management and safety business. After leading the initial sales efforts for TrafficVision and CrossingGuard, Dr. Reilly has most recently been focused on the development and deployment of Rail CrossingGuard, a suite of video-based highway/rail grade crossing monitoring applications for data collection, crossing safety assessment, and automating the enforcement of grade crossing violations.
    "Doug's product-development experience, strategic vision and management skills will allow him to step into his new role with confidence," said David Fox, Nestor's president and CEO. "As Nestor continues on its growth curve, with CrossingGuard and Rail CrossingGuard gaining market share, we needed to enhance our infrastructure with a champion who will lead our efforts - from sales through delivery. With our continued commitment to providing superior video-based traffic safety solutions, we are building a stronger company through the promotion of a strong leader."
    Dr. Reilly has nearly 25 years of experience developing pattern-recognition products for industrial and medical vision, character and speech recognition, and financial services. He received his MS and Ph.D. in Physics from Brown University in 1976 and 1980, specializing in neural networks. Dr. Reilly was an Assistant Professor of Neural Science at the Center for Neural Science at Brown University, where his research focused on neural-network theory and applications. Dr. Reilly is the author of numerous technical articles and co-author of many of the Company's pattern-recognition patents.

    About Nestor

    Nestor, Inc., through its wholly owned subsidiary, Nestor Traffic Systems, is an emerging leader in providing innovative, video-based monitoring systems and services for traffic 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.

    TrafficVision and CrossingGuard are registered trademarks of Nestor Traffic Systems, Inc. PRISM is a registered trademark of Retail Decisions Inc. All other company and product names are trademarks/registered trademarks of their respective companies.