Nestor Traffic Systems, Inc., a partially-owned subsidiary of Nestor, Inc. (OTC: NEST), today announced that DuPage County, Illinois has awarded a contract to the Company for its Rail CrossingGuard automated rail crossing enforcement system. Rail CrossingGuard will be installed at the Highlake Road and Sunset Avenue crossing, identified as one of the County’s high-risk crossings based on train and vehicle traffic volume. Developed specifically to address the devastating safety problems at rail crossings, Rail CrossingGuard is an extension of CrossingGuard^®, Nestor’s automated red light enforcement solution, which has been customized to monitor vehicle traffic and rail crossing signals to detect and record signal violations. CrossingGuard is the industry’s first automated enforcement solution to use video to monitor and detect violations, to record violation images, to transmit digital images electronically in real-time, and to issue citations.

Studies by the National Highway Traffic Safety Administration (NHTSA) and Federal Rail Administration (FRA) report that there are approximately 261,000 highway-rail and pedestrian crossings in the United States. From 1993 to 1998, there were 25,001 highway-rail crossing incidents involving motor vehicles — averaging 4,167 incidents a year. In the US alone, a train collides with a vehicle or person once every 2 hours, and in an average year, more people die at highway-rail crossings than in commercial airline crashes.

"Using technology to address the potentially life threatening behavior of signal violators at rail crossings is an effective step towards improving rail crossing safety. Additionally, Rail CrossingGuard’s video technology provides communities with the unique opportunity to "see" what is actually happening at their crossings," said James Hooper, industry expert, founder and president of Sakonnet Technology Group. "Not only does the system provide a level of signal enforcement that may not otherwise be possible, but it can also allow users to assess equipment status and monitor signal/gate timing. With this type of real-time information, officials are able to make proactive decisions and adjustments that directly affect the safety and efficiency of their crossings."

Rail CrossingGuard uses advanced video-processing technology and video cameras to detect and track vehicles as they approach a rail crossing. If a violation is detected, Rail CrossingGuard records a brief video sequence of the violation, including close-up color images of both the front and rear license plates of the vehicle, as well as driver images if it is a legislative requirement of the city/town. All violation video images are automatically transmitted in digital format via high-speed phone lines from the crossing to a central processing facility, where a citation is developed and issued to the violator.

Rail CrossingGuard’s automated enforcement application is the first in the series of Nestor’s rail safety products. Other applications in the planning and development stages include solutions for crossing monitoring to gather operational data (signal and gate function status) and traffic trends/driver behavior; alarm generation that will activate warning sirens and transmit warnings to central monitoring facilities and approaching trains; and a control solution that will pre-empt nearby roadway traffic signals to flush traffic queues to prevent traffic backups on the crossing.

The Rail CrossingGuard family of products have been developed with partial support from the Transportation Research Board’s IDEA (Innovations Deserving Exploratory Analysis) Program.

Certain information in this press release may include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

About Nestor Traffic Systems

Nestor Traffic Systems, Inc., a partially-owned subsidiary of Nestor, Inc. and headquartered in Providence, RI, is an emerging leader in providing innovative, video-based monitoring systems and services for traffic management and safety. Its products incorporate Nestor’s patented neural-network technology into intelligent, real-time solutions that promote traffic efficiency and intersection safety. Its TrafficVision^® solution is a real-time, video-based traffic management system that assists transportation agencies in improving safety, monitoring traffic flow, managing congestion, responding to incidents, and planning for maximum highway efficiency. And the Company’s CrossingGuard solution offers video-based intersection monitoring and automated enforcement of red light running violations with a built-in safety feature that helps to prevent intersection collisions. Nestor products are sold direct and by selected partners worldwide. For more information, call 401-331-9640 or visit www.nestor.com

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