EXHIBIT 99.1
                                                                    ------------

             NESTOR, INC. COMPLETES $6.0 MILLION PRIVATE PLACEMENT


PROVIDENCE,  RI -- (MARKET WIRE) --  11/10/2004 -- Nestor,  Inc. (OTC BB: NESO),
the parent of Nestor Traffic  Systems,  Inc., a leading  provider of video-based
monitoring  systems  for  traffic  safety,  is  pleased  to  report  that it has
completed a private  placement to accredited  investors of $6,000,000  aggregate
principal  amount of its 5% Senior  Convertible  Notes due October 31, 2007. The
notes carry  interest at 5% per year and are  convertible  into Nestor's  common
stock at $5.82 per  share.  The shares  offered  were not  registered  under the
Securities  Act of 1933  and may not be  offered  or sold in the  United  States
absent registration or an applicable exemption from registration requirements.

Nestor  Traffic  Systems  is  a  leader  in  providing  innovative,  video-based
monitoring  systems and  services  for  traffic  safety.  Its  primary  product,
CrossingGuard,   incorporates   Nestor's  patented  technology,   making  it  an
intelligent,   real-time   solution  that  promotes   traffic   efficiency   and
intersection safety.

CrossingGuard   automated  red  light   enforcement   system   offers   advanced
digital-video  technology,  a unique Collision  Avoidance(tm) safety feature and
advanced    client    support    capabilities.     CrossingGuard's     multiple,
time-synchronized  images give police  officers  and court  officials a complete
picture of what  actually  happened at the  intersection,  enabling them to make
accurate, objective decisions.

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

CONTACT:
Nigel P. Hebborn
Chief Operating Officer
(401) 434-5522 ext. 714 www.nestor.com

SOURCE:  Nestor, Inc.