"Faced with increasing traffic safety challenges, a growing number of Florida cities are seeking reliable and cost-effective enforcement tools. The City of Sweetwater carefully evaluated all of its options and selected Nestor and its CrossingGuard(R) system," stated Clarence A. Davis, Nestor CEO. "We welcome the City's commitment to safety and are pleased to support its traffic safety goals."

Nestor Traffic Systems provides automated traffic enforcement solutions to state and municipal governments. Nestor Traffic Systems is the exclusive North American distributor for the Vitronic PoliScanSpeed(TM) scanning LiDAR, capable of tracking multiple vehicles in multiple lanes simultaneously. An industry first, the scanning LiDAR mobile speed enforcement system is an innovative solution for digital speed detection and image recording. The scanning capability of the PoliScanSpeed(TM) system minimizes the ambiguity and measuring errors associated with conventional photo speed enforcement systems. Nestor's CrossingGuard(R) red light enforcement system uses patented multiple, time-synchronized videos to capture comprehensive evidence of red light and speed violations. In addition, CrossingGuard(R) offers customers a unique Collision Avoidance(TM) safety feature that can help prevent intersection collisions. CrossingGuard(R) is a registered trademark of Nestor Traffic Systems, Inc. PoliScanSpeed(TM) is a trademark of Vitronic. For more information, call (401) 274-5658 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, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We may not meet the expectations disclosed in our forward-looking statements and investors should not place undue reliance on those 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, legal and legislative challenges to automated traffic enforcement, and other factors discussed in Risk Factors in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. Investors are advised to read Nestor's Annual Report, quarterly reports on Form 10-Q and current reports on Form 8-K filed after our most recent annual or quarterly report. The forward-looking statements in this letter represent our current views and we disclaim any obligation to update these forward-looking statements.

For more information, call (401) 274-5658 or visit www.nestor.com.

SOURCE: Nestor, Inc.

When:    Tuesday, August 19, 2008, 7 pm - 10 pm

Where:   La Estancia Estate, Los Gatos
         Elegant hors d'ouevres by Willow Street Catering
          (www.willowstreet.com)
         Premiere Wines by Silver Mountain Vineyards
          (www.silvermtn.com)
         Desserts & coffee by Los Gatos Coffee Roasting
          (www.lgcrc.com)

Tickets: $150.00 per ticket (Advanced Reservations Only)

Contact: Teri Hope at 408-354-1155

SOURCE: Jazz on the Plazz

Padovani Communications for Jazz on the Plazz
Marguerite Padovani, 408-399-4713
padovanicom@earthlink.net

By allowing rule authoring in Microsoft Office applications rather than in programming code, Haley technology permits bankers to write and edit credit rules and lending procedures directly from source documents, the text of legislation and regulatory directives issued by federal, state, and local authorities.

"Bankers see tremendous value in having all of their credit polices and operating rules housed within a central location rather than in individual silos at each business line. It ensures consistency of interpretation and compliance with the intent of the laws that the regulators promulgate. Not knowing the rules of the game, or not following them precisely because of haste or misunderstanding, is one of the prime causes of the deterioration we've seen in banks' portfolios," explained Nestor.

"Take Regulation Z, the Truth-in-Lending Act that was amended on July 14. All loan officers, whether they make residential, home equity, indirect vehicle, or consumer loans, have to comply with it. Dispersed, paper-based manuals and systems can leave them open to following that law according to their own understanding. This can lead to discrepancies between what they interpret and the intent of the Act.

"But having a centralized repository, with rules developed directly from the wording of the Act, means that all of them will be complying with the letter and the intent of the law. During each transaction, Haley's determinations engine refers precisely to the relevant section of the policy document if there is a flaw. The policy document mimics the law itself, so there is no room for variance," he continued.

Lenders operating nationwide can be confident that Haley's rules engine will also ensure that the precise wording of each state's lending requirements can be incorporated into the rules repository.

"I have never seen the environment as tight as it is now with the credit crisis. Regulators at both the federal and state levels are taking an aggressive stance to ensure that banks are complying with regulations, and the regulations themselves have become more complicated and varied state by state," remarked Nestor, who holds a degree in economics from University College in Dublin.

Before coming to Haley, Nestor worked for ten years with Rockall Technologies and Nomis Solutions. He has specialized in loan origination, collateral tracking, and pricing optimization as well as rules management systems for the nation's largest financial services institutions.

"We are very happy that Matt has joined the Haley team. He knows the banking business well and has worked with many top institutions to address pressing concerns through the use of technology. Financial services is already a sweet spot for our company, and we see tremendous opportunity to expand market share by helping banks respond to the credit crunch through making well documented, high quality loans," said Scott Frendt, Haley's vice president of sales for the Americas.

About Haley Limited

Haley's comprehensive suite of software solutions enables clients to automate policy, manage business rules, and enforce compliance. The Haley global client list includes organizations in the public sector, insurance, banking, telecommunications, transportation, healthcare and manufacturing. The company is headquartered in Australia and has offices in the United States, the United Kingdom, Europe and Singapore.

Graber Associates LLC

Tom Burke
617-323-5694
Email Contact

Haley Limited

Heike Lorenz
+61 404 082 648
Email Contact

Haley Limited

Peter Still
571-331-4463
Email Contact

SOURCE: Haley Limited

http://www2.marketwire.com/mw/emailprcntct?id=6FCD5BEDC8501664
http://www2.marketwire.com/mw/emailprcntct?id=8CAAD6DEF4075B58
http://www2.marketwire.com/mw/emailprcntct?id=BBC0948EE56FE587

On August 8, 2008, the Company's Board of Directors approved a term sheet for a series of transactions that would convert more than half of the Company's debt into equity, eliminate the convertible features of the remaining debt, waive or cure all existing defaults on the Company's debt and provide a minimum of $4 million of new capital to the Company, all of which would result in significant dilution of existing stockholders. The transactions are subject to a number of closing conditions, including negotiation and execution of definitive documents and approval by the existing note holders and stockholders.

Clarence A. Davis, Chief Executive Officer of Nestor, Inc., stated, "The results reported for the second quarter of 2008 continue to represent improvement realized by the Company. We are pleased to note that in the second quarter, we added 21 approaches in enforcement, primarily in Grande Prairie, Canada and signed extensions and expansions of programs in San Bernardino and Costa Mesa California resulting in 28 new approaches under contract. Over the past month, we signed an extension and expansion with the Delaware Department of Transportation resulting in 20 new approaches under contract. We also signed our first contract in a new state market for Nestor resulting in up to 12 new approaches in Sweetwater, Florida. With the company generating positive cash flow in the second quarter, these new approaches further demonstrate the company's ability to grow a successful and profitable business.

"At the same time, the Company has agreed to a term sheet with its note holders to restructure our balance sheet. More specifically, we expect the Company to soon have significantly less debt, more cash, and more equity. This deal will be dilutive to existing shareholders on a percentage ownership basis. When completed, this restructuring of our balance sheet will demonstrate to our prospects and customers that Nestor is here to stay and committed to our long term success in our industry."

The Company reported a Loss from Operations for the quarter ended June 30, 2008 of $486,000 compared to a Loss from Operations of $892,000 in the second quarter of 2007. Loss from Operations for the six month period ended June 30, 2008 was $1,814,000 compared to a Loss from Operations of $2,174,000 for the comparable 2007 period. The Company incurred a non-cash charge of $3,000 for share-based compensation in the second quarter of 2008 compared to $170,000 in the second quarter of 2007, and $183,000 for the six month period ended June 30, 2008 compared to $309,000 for the comparable 2007 period. The improvement in Loss from Operations for the quarter and six month period ended June 30, 2008 is a result of the increase in gross profit achieved through revenue growth and decreased share-based compensation expense, partially offset by increased selling and marketing expenses as the Company expanded its presence to aggressively pursue new automated traffic enforcement opportunities.

The Company reported a U.S. GAAP net loss for the quarter ended June 30, 2008 of $1,745,000, compared to a net loss of $1,959,000 in the second quarter of 2007. Net loss for the six month period ended June 30, 2008 was $4,250,000 compared to $3,469,000 for the comparable 2007 period. In the second quarter of 2008, non-cash derivative instrument income was $659,000 compared to $537,000 in the second quarter of 2007. For the six months ended June 30, non-cash derivative investment income was $1,209,000 in 2008 and $1,866,000 in 2007. Also, amortization of debt discount expense was $1,008,000 for the quarter ended June 30, 2008 and 2007 and $2,016,000 for the six months ended June 30, 2008 and 2007.

We had cash and cash equivalents of approximately $1.0 million at June 30, 2008, compared to $3.1 million at December 31, 2007. More details regarding our results for the second quarter of 2008 may be found in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 14, 2008.

Nestor Traffic Systems provides automated traffic enforcement solutions to state and municipal governments. Our CrossingGuard(R) red light enforcement system uses patented multiple, time-synchronized videos to capture comprehensive evidence of red light violations. In addition, CrossingGuard(R) offers customers a unique Collision Avoidance(TM) safety feature that can help prevent intersection collisions. We also offer a video-based ViDAR(TM) speed detection and imaging system which uses non-detectable, passive video detection and enforces multiple, simultaneous violations bi-directionally. Nestor Traffic Systems is a distributor for the Vitronic PoliScanSpeed(TM) scanning LiDAR, capable of tracking multiple vehicles in multiple lanes simultaneously. CrossingGuard(R) and ViDAR(TM) are registered trademarks of Nestor Traffic Systems, Inc. PoliScanSpeed(TM) is a trademark of Vitronic. For more information, call (401) 274-5658 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, further approvals of contracted approaches, legal and legislative challenges to automated traffic enforcement, patent protection of our technology, and other factors discussed in Risk Factors in our most recent Annual Report on Form 10-K filed with the SEC. Investors are advised to read our Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed after our most recent annual or quarterly report. 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.

The table below is a reconciliation of U.S. GAAP net loss to modified EBITDA for the quarter and six month periods ended June 30:

                      Three Months Ended June 30, Six Months Ended June 30,
                        ------------------------  ------------------------
                            2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
GAAP net income (loss)  $(1,745,000) $(1,959,000) $(4,250,000) $(3,469,000)
Interest expense, net of
 interest income            910,000      596,000    1,629,000    1,145,000
Income tax expense              ---          ---          ---          ---
Depreciation and
 amortization             1,006,000      839,000    2,001,000    1,544,000
                        -----------  -----------  -----------  -----------
EBITDA                  $   171,000  $  (524,000) $  (620,000) $  (780,000)
Derivative instrument
 income                    (659,000)    (537,000)  (1,209,000)  (1,866,000)
Debt discount expense     1,008,000    1,008,000    2,016,000    2,016,000
Stock-based compensation
 expense                      3,000      170,000      183,000      309,000
                        -----------  -----------  -----------  -----------
Modified EBITDA         $   523,000  $   117,000  $   370,000  $  (321,000)
                        ===========  ===========  ===========  ===========

We calculate Modified EBITDA by first calculating EBITDA, which we define as net income before interest expense, debt restructuring or debt extinguishment costs (if any during the relevant measurement period), provision for income taxes, and depreciation and amortization. Then we exclude derivative instrument income or expense, debt discount expense, share-based compensation expense, and asset impairment charges. These measures eliminate the effect of financing transactions that we enter into on an irregular basis based on capital needs and market opportunities, and these measures provide us with a means to track internally generated cash from which we can fund our interest expense and our growth. In comparing modified EBITDA from period to period, we also ignore the effect of what we consider non-recurring events not related to our core business operations to arrive at what we define as modified EBITDA. Because modified EBITDA is a non-GAAP financial measure, we include in a table in this press release reconciliations of modified EBITDA to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States. We present modified EBITDA because we believe it provides useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements, and that it provides an overall evaluation of our financial condition. In addition, modified EBITDA is defined in certain financial covenants under our Senior Secured Convertible Notes and was used to adjust the interest rate on those notes at July 1, 2007, and will be used at January 1, 2009 to determine whether the holders of those notes have a redemption right at May 25, 2009.

Modified EBITDA has certain limitations as an analytical tool and should not be used as a substitute for net income, cash flows or other consolidated income or cash flow data prepared in accordance with accounting principles generally accepted in the United States or as a measure of our profitability or our liquidity.

                               NESTOR, INC.
                  Condensed Consolidated Balance Sheets
                  In Thousands, Except Share Information
                                                    June 30,   December 31,
                                                      2008        2007
                                                  -----------  -----------
                                                  (Unaudited)
ASSETS
Current assets
   Cash and cash equivalents                      $     1,064  $     3,135
   Accounts receivable, net                             2,713        2,806
   Inventory, net                                         909          922
   Other current assets                                   389          255
                                                  -----------  -----------
      Total current assets                              5,075        7,118
Noncurrent assets
   Capitalized system costs, net                        9,602        9,867
   Property and equipment, net                            471          487
   Goodwill                                             5,581        5,581
   Patent development costs, net                          131          128
   Other long term assets                               1,584        1,865
                                                  -----------  -----------
Total Assets                                      $    22,444  $    25,046
                                                  ===========  ===========
Liabilities and Stockholders' Equity (DEFICIT)
Current liabilities
   Current portion of notes payable, net of
    discounts                                     $    17,030  $       ---
   Current portion of derivative instruments              838          ---
   Accounts payable                                     1,330          826
   Accrued liabilities                                  1,450        1,335
   Accrued employee compensation                          366          366
   Deferred revenue                                     1,080        1,220
   Asset retirement obligation                            815          330
                                                  -----------  -----------
      Total current liabilities                        22,909        4,077
Noncurrent liabilities
   Long term convertible notes payable                    ---        1,719
   Long term notes payable                                ---       13,295
   Derivative financial instruments - debt and
    warrants                                               34        2,081
   Long term asset retirement obligation                  627          934
                                                  -----------  -----------
      Total liabilities                                23,570       22,106
                                                  -----------  -----------
Stockholders' Equity (Deficit)
   Preferred stock, $1.00 par value, authorized
    10,000,000 shares; issued and outstanding:
    Series B - 180,000 shares at June 30, 2008
    and December 31, 2007                                 180          180
   Common stock, $0.01 par value, authorized
    50,000,000 shares issued and outstanding:
    28,954,219 shares at June 30, 2008 and
    December 31, 2007                                     290          290
   Additional paid-in capital                          79,156       78,972
   Accumulated deficit                                (80,752)     (76,502)
                                                  -----------  -----------
      Total stockholders' equity (deficit)             (1,126)       2,940
                                                  -----------  -----------
Total Liabilities and Stockholders' Equity
 (deficit)                                        $    22,444  $    25,046
                                                  ===========  ===========
                               NESTOR, INC.
              Condensed Consolidated Statements of Operations
           In Thousands, Except Share And Per Share Information
                                (Unaudited)
                           Quarter Ended June 30, Six Months Ended June 30,
                            ----------------------  ----------------------
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
Revenues:
  Lease and service fees    $    3,131  $    3,061  $    6,007  $    5,442
  Product royalties                501         ---         523         ---
                            ----------  ----------  ----------  ----------
      Total revenue              3,632       3,061       6,530       5,442
                            ----------  ----------  ----------  ----------
Cost of sales:
  Lease and service fees         1,862       1,756       3,690       3,221
  Product royalties                ---         ---         ---         ---
                            ----------  ----------  ----------  ----------
      Total cost of sales        1,862       1,756       3,690       3,221
                            ----------  ----------  ----------  ----------
Gross profit:
  Lease and service fees         1,269       1,305       2,317       2,221
  Product royalties                501         ---         523         ---
                            ----------  ----------  ----------  ----------
      Total gross profit         1,770       1,305       2,840       2,221
                            ----------  ----------  ----------  ----------
Operating expenses:
  Engineering and operations     1,062       1,004       2,078       2,093
  Research and development         116          82         205         219
  Selling and marketing            381         175         764         371
  General and administrative       697         936       1,607       1,712
                            ----------  ----------  ----------  ----------
      Total operating
       expenses                  2,256       2,197       4,654       4,395
                            ----------  ----------  ----------  ----------
Loss from operations              (486)       (892)     (1,814)     (2,174)
Derivative instrument
 income                            659         537       1,209       1,866
Debt discount expense           (1,008)     (1,008)     (2,016)     (2,016)
Interest and other expense,
 net                              (910)       (596)     (1,629)     (1,145)
                            ----------  ----------  ----------  ----------
Net loss                    $   (1,745) $   (1,959) $   (4,250) $   (3,469)
                            ==========  ==========  ==========  ==========
Loss per share, basic and
 diluted                    $    (0.06) $    (0.10) $    (0.15) $    (0.17)
                            ==========  ==========  ==========  ==========
Shares used in computing
 loss per share:
  Basic and diluted         28,954,219  20,421,816  28,954,219  20,415,983
                            ==========  ==========  ==========  ==========

SOURCE: Nestor, Inc.