EXHIBIT 99.1
                                                                    ------------
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, INC. PLACES $8.2 MILLION OF ADDITIONAL SECURITIES




Providence,  RI - January 15,  2004-  Nestor,  Inc.  (OTC BB:  NESO),  a leading
provider of video-based  monitoring  systems for traffic  safety,  is pleased to
report that it has issued  2,238,000 common shares at $3.00 per share and placed
a $1.5 million note  convertible  into common shares of the Company at $3.50 per
share.  Proceeds from the  transactions  provide Nestor with capital to continue
operating   under  its   current   installation   schedule,   and  to  seek  new
CrossingGuard(R) business opportunities.


Nigel Hebborn,  CEO of Nestor Traffic Systems,  stated, "This past year has been
marked by significant  progress for Nestor. We have grown from an installed base
of forty-one  approaches at the end of 2002, to a current installed base of over
ninety  approaches.  This growth would not have been possible without  continued
investor confidence in, and support for, both our technology and our leadership.
The  automated  enforcement  industry in the U.S. is  relatively  young,  and we
believe that we are viewed as one of the leading providers of these services."

This recent equity  investment,  placed by three  respected  financial  services
firms,  the Sanders  Morris  Harris  Group of Houston,  Texas,  Barrett & Co. of
Providence,  RI, and Taglich  Brothers of New York,  placing $3.1 million,  $2.7
million,  and $.9  million  respectively,  allows  Nestor to meet its  near-term
general  operating  expenses as well as continue the  installation of contracted
systems.  In addition to this  financing  effort,  Nestor retired the $2 million
convertible note issued to Silver Star Partners by converting  676,384 shares of
common  stock at $3.00 per share and  retired  the $2 million  convertible  note
issued  to  Laurus  Funds by  converting  492,904  shares at $1.55 per share and
redeeming the remaining  $1,150,750 balance of the note. The Company also issued
a new  convertible  note to Laurus  for  raising  $1.5  million.  The note bears
interest  prime plus 1.25% per annum,  subject to a floor of 5.25% per annum and
is convertible into common stock of the Company at $3.50 per share.

Nestor Traffic Systems is the provider of  CrossingGuard  video-based  red-light
enforcement  solutions and services.  Through patented video technology,  Nestor
offers a turnkey  solution that helps reduce  red-light  violations and increase
traffic  safety  at  intersections.  In  addition,  CrossingGuard  is  the  only
automated  red-light  enforcement  system in the industry that offers  customers
Collision  Avoidance,  an optional  safety  feature that actually  helps prevent
intersection   collisions.   CrossingGuard's   use  of  multiple  videos  offers
municipalities  an  opportunity  to  significantly   reduce  red  light  running
violations while  demonstrating  its commitment to fairness.  Services  include:
intersection  evaluation,  equipment  installation,  user  training and support,
citation issuance and payment processing, and account management.  CrossingGuard
is a registered trademark of Nestor Traffic Systems,  Inc. For more information,
call (401) 434-5522 or visit www.nestor.com.

                                     -MORE-





NESTOR, INC. PLACES $8.2 MILLION OF ADDITIONAL SECURITIES                2/2/2/2


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,  patent  protection of our technology,
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.

                                      # # #