Marble Falls, Texas Selects Nestor Traffic Systems to Provide Mobile Speed Enforcement Tools and Services

PROVIDENCE, RI -- (MARKET WIRE) -- August 30, 2006 -- Nestor Traffic Systems, Inc., a leading provider of advanced red light and speed enforcement systems and services and subsidiary of Nestor Inc. (NASDAQ: NEST), this morning announced that the City of Marble Falls, Texas entered into a contract with Nestor to provide mobile speed enforcement tools and services to the City. The Marble Falls City Council approved the contract last night in a 7-0 vote. The contract calls for one mobile speed enforcement van to be deployed at least thirty hours a week and allows the City to use data from the speed system to issue citations for infractions other than speeding. With the new Marble Falls contract, NTS expands its customer base to include customers in twelve U.S. states and one Canadian province.

"Nestor is pleased to be part of this effort to improve community safety," said William B. Danzell, Chief Executive Officer of Nestor Traffic Systems. "The Marble Falls Traffic Safety Program can positively change driver behavior and create a safer work environment for police officers."

Marble Falls Chief Mark Whitacre added, "We are very happy and excited to work with Nestor to bring their speed enforcement safety system to our City."

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 speed enforcement systems. Our 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

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.