EXHIBIT 99.2
                                                                   ------------


FOR IMMEDIATE RELEASE


CONTACT:   Nigel P. Hebborn, Executive Vice President
           (401) 434-5522 ext. 714
           www.nestor.com

                       NESTOR, INC. REPORTS FOURTH QUARTER
                              AND YEAR-END RESULTS

PROVIDENCE, RI - MARCH 29, 2004- Nestor, Inc. (OTC BB: NESO), a leading provider
of  video-based  traffic safety  solutions and services,  is pleased to announce
fourth quarter and 2003 year-end  results,  reporting an increase in both Q4 and
year-end  revenues  over the same periods  2002.  Revenues  for the  three-month
period ending  December 31, 2003 increased  236% to $1,122,000  from $334,000 in
2002, and twelve-month  revenues  increased 28% to $2,706,000 from $2,122,000 in
2002.  Operating  expenses for the same twelve-month  period were reduced by 60%
over the previous  year,  primarily  due to 2002  impairment  and  restructuring
charges that did not recur in 2003. Net losses reported for the quarter and year
ended  December  31,  2003 were  $1,592,000  and  $4,890,000,  respectively,  as
compared to net losses of $662,000 and $12,634,000,  respectively,  in 2002. The
Company had cash and  short-term  investments of  approximately  $5.4 million at
December 31, 2003, versus approximately $309,000 at year-end 2002.

William B. Danzell,  Chief Executive Officer of Nestor, Inc. stated,  "This past
year was an exciting  year for Nestor;  we are now devoting our resources to our
core product,  CrossingGuard(R),  and revenues from that business alone exceeded
revenues from all lines of business in 2002.  Our focus and direction  over this
past year has  resulted in  tremendous  accomplishments,  including  winning our
first statewide  automated red light enforcement  program,  securing  attractive
financing  options for our  customers,  and  increasing  the number of installed
CrossingGuard systems by over 100%."

Nestor Traffic Systems,  Inc. (NTS), a wholly owned subsidiary of Nestor,  Inc.,
is the sole  provider  of the  CrossingGuard  Automated  Red  Light  Enforcement
System.  Through  patented  image  processing   technology,   NTS  has  provided
video-based  enforcement  solutions  to  safety-minded  communities  since 1998.
Combining  high-speed video  technology,  non-invasive  installations,  multiple
evidentiary  violation  views,  and a unique Collision  Avoidance  feature,  NTS
offers  customers a turnkey  solution to improve  roadway  safety.  From initial
intersection  analysis,  to processing and support  services,  the CrossingGuard
suite of services is tailored to meet each customer's specific needs.

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.

Detailed  financial  information  is reported in the  Nestor,  Inc.  2003 Annual
Report and may be obtained by contacting the Company directly.  CrossingGuard is
a registered  trademark of Nestor Traffic  Systems,  Inc. For more  information,
call (401) 434-5522 or visit www.nestor.com.

                                      # # #

     Nestor, Inc. 400 Massasoit Avenue, Suite 200 East Providence, RI 02914
              Ph: (401) 434-5522 Fax: (401) 434-5809 www.nestor.com