Nestor Announces Special Version of Award Winning N'Route for Integration
with Lotus' New Lotus Fax Server

Based on hand-print, machine-print and optical mark based routing.

New York, NY June 20, 1995 -- Nestor, Inc. (OTC: NEST) announced today it
will produce a special version of its award winning N'Route software that
is specifically designed for integration with Lotus' new LFS (Lotus Fax
Server) product. The product, N'Route for LFS will be designed to work
exclusively with Lotus cc:Mail and Lotus Notes, and their corresponding
LFS products. The generic version of N'Route was recently named Imaging
Magazine 's 1994 Product of the

"The fax server market is still in its infancy and has yet to offer a
method for automatically routing incoming faxes that doesn't burden the
sender," said Sanford Leavenworth, Product Sales Manager for N'Route.
"Most current automatic routing methods require the sender to know either
a specific fax phone number or an additional code for each person within a
company. With N'Route for LFS, the sender merely needs to print the
recipient's name on the cover sheet, or send the fax directly from a
computer based fax application. N'Route for LFS delivers the fax quickly,
efficiently, and effectively with a fraction of the overhead."

Based on Nestor's proprietary NestorReader technology for recognizing and
interpreting hand-printed characters, N'Route for LFS "reads" fax cover
sheets and automatically routes the fax to the intended recipient over PC
networks through Lotus Notes and cc:Mail. N'Route for LFS ensures
efficient delivery of faxed information throughout the company with
minimal manual reading, sorting, and distributing.

According to David Wright, Nestor's Director of Sales, "most companies in
the process of implementing fax servers understand the need to unify faxes
with E-mail. N'Route for LFS makes significant strides towards achieving
that objective, thus helping to alleviate the tremendous burden in routing
faxes within the corporate environment."

"What's exciting about the N'Route-Notes relationship is that both products
are designed for the workgroup," said Scott Cooper, Lotus' Director of
Imaging Products. "The new Lotus Fax Server is designed to service groups
or departments of people, this is also a good fit for N'Route."

"N'Route is another example of how Nestor's ICR technology helps companies
increase their productivity," added David Fox, President and CEO of
Nestor. "A company that receives as few as 50 hand-printed faxes a day
will save thousands of dollars a year in clerical costs using N'Route.
Multiply that by the number of fax machines in any large company and you
begin to see the product's significance."

N'Route for LFS will be available in early September through Lotus'
existing distribution channels. N'Route for LFS costs $1,495 for a single
dedicated inbound fax line and $995 for each additional line up to 6.
Progressive discounting on larger installations will apply.

Nestor, Inc. is a world leader in pattern recognition and intelligent
character recognition (ICR). The company develops and markets
state-of-the-art solutions for efficient data capture, translation and
routing. Information can be captured from paper or faxes, and converted to
computer-readable structured data for processing by business systems.
Nestor is an acknowledged pioneer in pattern recognition technology,
having won several awards for its pattern recognition technologies.

Nestor Inc
One Richmond Square
Providence, RI 02906
401-331-9640,  fax 401-331-7319

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