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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 SUdaZqa9Yu2xjTMeAgVYFA==

<SEC-DOCUMENT>0000720851-04-000019.txt : 20040316
<SEC-HEADER>0000720851-04-000019.hdr.sgml : 20040316
<ACCEPTANCE-DATETIME>20040316163258
ACCESSION NUMBER:		0000720851-04-000019
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040316

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SILVER STAR PARTNERS I LLC
		CENTRAL INDEX KEY:			0001216715
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12965
		FILM NUMBER:		04673073

	BUSINESS ADDRESS:	
		STREET 1:		THE PROFESSIONAL BUILDING
		STREET 2:		2 CORPUS CHRISTI STE 300
		CITY:			HILTON HEAD ISLAND
		STATE:			SC
		ZIP:			29938
		BUSINESS PHONE:		8437852929

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NESTOR INC
		CENTRAL INDEX KEY:			0000720851
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				133163744
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		400 MASSASOIT AVE
		STREET 2:		STE 200
		CITY:			PROVIDENCE
		STATE:			RI
		ZIP:			02914
		BUSINESS PHONE:		4014345522

	MAIL ADDRESS:	
		STREET 1:		400 MASSASOIT AVE
		STREET 2:		STE 200
		CITY:			PROVIDENCE
		STATE:			RI
		ZIP:			02914
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>form5_silverstarex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0201</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2003-12-31</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <form3HoldingsReported>0</form3HoldingsReported>

    <form4TransactionsReported>1</form4TransactionsReported>

    <issuer>
        <issuerCik>0000720851</issuerCik>
        <issuerName>NESTOR INC</issuerName>
        <issuerTradingSymbol>NESO.OB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001216715</rptOwnerCik>
            <rptOwnerName>SILVER STAR PARTNERS I LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>THE PROFESSIONAL BUILDING</rptOwnerStreet1>
            <rptOwnerStreet2>2 CORPUS CHRISTI STE 300</rptOwnerStreet2>
            <rptOwnerCity>HILTON HEAD ISLAND</rptOwnerCity>
            <rptOwnerState>SC</rptOwnerState>
            <rptOwnerZipCode>29938</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2003-12-31</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>676384</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>9589941</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Issuer's exercise of its right to repay promissory note in common stock.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Silver Star Partners I, LLC, By: /s/William B. Danzell, its Managing Director</signatureName>
        <signatureDate>2004-03-16</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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