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
           (401) 434-5522 ext. 714
           www.nestor.com

                        CLARIFICATION OF CEO'S STATEMENTS
                             IN WALLST.NET INTERVIEW


PROVIDENCE, RI - July 23, 2004 - On July 13, 2004, William B. Danzell, President
& Chief  Executive  Officer of Nestor,  Inc. (OTC:  NESO),  gave an interview to
WallSt.net   discussing  Nestor  and  its  business.  In  connection  with  that
interview,   Nestor  wishes  to  clarify  that  neither  the  company,  nor  its
subsidiary,  Nestor  Traffic  Systems,  Inc.,  currently  offers a mobile  speed
detection product. Nestor is currently engaged in discussions with manufacturers
of mobile speed detection products,  with the objective of securing distribution
rights to such a product, but there can be no assurance that the company will be
able to obtain  distribution  rights.  To date, there have been no agreements or
understandings reached with any manufacturer of mobile speed detection products.

In addition,  Mr.  Danzell's  statement  during the interview that the company's
current cash position was  "approximately  $4 million" referred to the amount of
cash, cash equivalents and marketable equity securities held by the company.

Nestor Traffic Systems' CrossingGuard(R) system offers digital-video technology,
the  Collision   Avoidance(TM)   safety  feature  and  advanced  client  support
capabilities. Compared to still film solutions that offer only a few images of a
violation,  CrossingGuard's multiple videos provide officers and court officials
a complete picture of what actually happened at the intersection,  enabling them
to make accurate, objective decisions.

Nestor, Inc., through its wholly owned subsidiary, Nestor Traffic Systems, is an
emerging  leader in providing  innovative,  video-based  monitoring  systems and
services  for  traffic  safety.  Its  products   incorporate  Nestor's  patented
technology into intelligent, real-time solutions that promote traffic efficiency
and intersection safety. Further information may be found at www.nestor.com.

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.

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