Nestor Board Members in Lawsuit With Nestor's Former CEO

HILTON HEAD, S.C., Jan. 11 /PRNewswire/ -- Silver Star Partners I, LLC and Foundation Partners I, LLC announced today that they intend to liquidate their registered Nestor common stock holdings in the near future.

Nestor's General Counsel, Brian Haskell, was given notice, in October 2007, that Silver Star, pursuant to its 2003 Investor's Rights Agreement for Demand Registration, of its demand register all Silver Star Partners I, LLC unregistered common stock holdings. To date, the Company has ignored this request for demand registration.

The Partnerships' advisors believe, prior to any registered NEST shares being sold in the open market, it is informative for interested parties to know that two members of the Board of Directors of Nestor have brought a lawsuit against Silver Star, Foundation Partners I, LLC and William B. Danzell, General Partner of both partnerships in Beaufort County, South Carolina and filed a motion seeking to remove the General Partner, freeze Silver Star assets, dissolve the Partnership, and appoint a Receiver. The Court denied the motion seeking this relief, stating the relief requested by the Plantiffs was "drastic, unnecessary and could detrimentally effect the (other Partners of Silver Star)".

The Defendants filed counterclaims, on December 3rd, 2007, against four of Nestor's Board of Directors members. The two Directors that are Plantiffs in the lawsuit, Mr. Edward Heil, who is also a Board of Director member of American Ecology and Mr. David Jordan are named in the counterclaims. As well as Nestor's Chairman, George Ball, who is also, Chairman of Sanders Morris Harris Group and Nestor's Chief Executive Officer and Director, Clarence Davis. Among the counter-claims, is the violation of the Racketeer Influenced and Corrupt Organization Act (RICO).

To locate the public filing of the Answer and Counterclaim associated with this lawsuit, go to www.bcgov.net/clerk_court/clerk_court.php .