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 RAISES AN ADDITIONAL $2 MILLION


PROVIDENCE,  RI - October  17,  2003 - Nestor,  Inc.  (OTC:  NESO) is pleased to
announce that it has received $2 million for a convertible note issued to Silver
Star Partners I, LLC. Nestor and its subsidiary,  Nestor Traffic  Systems,  Inc.
will use the proceeds as operating capital to continue delivery of the company's
core safety product, CrossingGuard(R).

William B. Danzell,  CEO of Nestor stated,  "The last several  months  represent
significant progress for Nestor. Since August, we have completed installation of
fourteen new approaches,  continuing to meet both our Company objectives and our
clients'  expectations.  This addition of capital  strengthens  our position and
enables us to  maintain  our  current  installation  schedule  while  working to
deliver CrossingGuard to new clients".

CrossingGuard  uses  patented  digital  imaging  technology  to deliver the most
advanced Automated Red-light Enforcement available.  Through the use of multiple
videos and 24/7 real-time monitoring, CrossingGuard ensures system integrity and
system reliability.  These features, coupled with the unique Collision Avoidance
safety feature, are helping to make standard intersections intelligent.

Statements in this press release about future expectations,  plans and prospects
for Nestor,  including  statements  containing the words "expects,"  "will," and
similar expressions, constitute forward-looking statements within the meaning of
Section  21E of the  Securities  Exchange  Act of 1934.  We may not  achieve the
plans,  intentions or expectations  disclosed in our forward-looking  statements
and investors 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  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. The  forward-looking
statements  included in this press  release  represent  our current views and we
specifically disclaim any obligation to update these forward-looking  statements
in the future.

CrossingGuard is a registered trademark of Nestor Traffic Systems, Inc. For more
information, call (401) 434-5522 or visit www.nestor.com.


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