Nestor, Inc. 400 Massasoit Avenue, Suite 200 East Providence, RI 02914
             Ph: (401) 434-5522 Fax: (401) 434-5809 www.nestor.com




FOR IMMEDIATE RELEASE


CONTACT:   Nigel P. Hebborn, Executive Vice President
           (401) 434-5522 ext. 714     www.nestor.com



           NESTOR ELECTS THREE NEW MEMBERS TO ITS BOARD OF DIRECTORS


PROVIDENCE,  RI - October  16,  2003 - Nestor,  Inc.  (OTC:  NESO) is pleased to
announce  the election of three new members to its Board of  Directors.  Joining
the Board are Susan A. Keller, Dr. Albert H. Cox and Terry E. Fields.

Nestor's CEO, William Danzell,  states that,  "through  CrossingGuard,  Nestor's
patented  technology,  we can save  lives  and  reduce  the  number  of  traffic
violations  at  intersections.  As traffic  volumes  continue  to  increase  and
municipalities  and state  governments  begin to realize the positive  impact of
Automated Red-Light Enforcement, we expect the demand for Nestor's CrossingGuard
product  to grow.  The  potential  size and  scope of the  market  for red light
enforcement  has caused us to seek out the best  people to assist  Nestor in its
anticipated  growth.  The new  Board  members  understand  the needs of a growth
company, and we look forward to their contributions."

Susan Keller, Partner at Edwards & Angell, LLP, Rhode Island's largest law firm,
specializes in corporate  financings.  Ms.  Keller's legal career has focused on
mergers and acquisitions, private equity financing, senior and subordinated debt
transactions  and  general  corporate  work.  Several of the  largest  financial
institutions have relied on her expertise in their corporate restructurings.

Dr. Albert Cox,  presently a private investor,  was the founder and President of
Merrill  Lynch  Economics.  He also served as an economic  advisor to  President
Richard Nixon. Dr. Cox has provided economic and financial market advice to many
of the  world's  leading  financial  institutions  and has  served  on  numerous
corporate Boards.

Terry  Fields is presently  the Chief  Financial  Officer of Community  Loans of
American,  Inc.,  headquartered  in Atlanta,  Georgia.  Mr. Fields served as the
Chief  Financial  Officer and interim CEO of Seibels  Bruce,  a publicly  traded
insurance company.

Nestor  Traffic  Systems  is a provider  of  innovative,  video-based  Red-Light
Enforcement solutions and services.  Nestor's patented video technology provides
solutions that help reduce  red-light  violations and improve  traffic safety at
intersections. In addition, CrossingGuard is the only automated red-light system
in the industry that offers Collision Avoidance, an optional safety feature that
actually helps prevent intersection collisions. The CrossingGuard product offers
municipalities  an  opportunity  to  significantly   reduce  red  light  running
violations and demonstrate a commitment to safety. Nestor brings intelligence to
intersections.


                                     -MORE-



NESTOR ELECTS THREE NEW MEMBERS TO ITS BOARD OF DIRECTORS                 Page 2

Any  statements  in this press  release  about  future  expectations,  plans and
prospects  for  Nestor,  including  statements  about  new  customers  and other
statements  containing the words "expects,"  "will,"  "anticipates," and similar
expressions, constitute forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934. We cannot guarantee that we actually
will  achieve  the  plans,   intentions   or   expectations   disclosed  in  our
forward-looking  statements  and you  should  not place  undue  reliance  on our
forward-looking  statements.  Actual  results may differ  materially  from those
indicated by such  forward-looking  statements as a result of various  important
factors,  including:  market  acceptance of our products,  competition and other
factors  discussed in Exhibit 99.1 to our most recent  annual  report filed with
the SEC. In  addition,  the  forward-looking  statements  included in this press
release represent our views as of October 15, 2003 and we specifically  disclaim
any obligation to update these  forward-looking  statements in the future. These
forward-looking  statements  should not be relied upon as representing our views
as of any date subsequent to October 15, 2003.

CrossingGuard is a registered trademark of Nestor, Inc.


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