PROVIDENCE – Traffic-enforcement systems and services provider Nestor Inc. (OTCBB: NEST) today announced that, despite the weak economy and continued turmoil in the credit markets, it has secured $500,000 in new financing.

The money will be used “to support growth in the company’s automated traffic safety enforcement business,” Nestor said.

Several institutional and accredited investors banded together to provide the bridge financing, following a review of the company’s current business and its future prospects, the company added.

“We are extremely pleased with investors’ demonstrated confidence in Nestor,” Clarence A. Davis, the company’s CEO, said in a statement. “To have secured financing in this market on such favorable terms demonstrates Nestor’s inherent strength and serves notice that we are here to stay,” he added. Full financial terms were not disclosed.

“Our recent growth, together with carefully planned and thoroughly vetted business objectives, has convinced investors that we are a viable choice for their future,” Davis said. “We are the right company at the right time.”

Its second-quarter results “showed tremendous positive progress and forecast the company’s ability to grow a successful and profitable business,” the company added in its statement.

For the first half of 2008, the company posted a net loss of $4.25 million, a 22.5-percent increase from the year-ago $3.47 million – on total revenue that grew 20 percent to $6.53 million – based on Nestor’s quarterly filing with the U.S. Securities and Exchange Commission (SEC) for the period ended June 30. Meanwhile, its loss per fully diluted share fell to 15 cents from the 2007 first half’s 17 cents.

Nestor’s third-quarter financial results are slated for release next month.

Nestor Inc. (OTCBB: NEST) – the parent of Nestor Traffic Systems Inc. – is a provider of video-, photo- and LiDAR-based traffic-enforcement systems and services to state and municipal governments. For more information, visit www.nestor.com.