DRI Corporation Announces Plans to Sell Operations Under Section 363 of Chapter 11 of the Bankruptcy Code

DRI Corporation (OTCQB: TBUS), a digital communications technology leader in the global surface transportation and transit security markets, announced today that it has filed in Eastern District of North Carolina Bankruptcy Court for sale of its assets and operations under Section 363 of Chapter 11 of the U.S. Bankruptcy Code.

As previously announced in a press release dated April 15, 2011, DRI Corporation’s Board of Directors formed a Special Committee to consider and evaluate the Company’s strategic alternatives. The Special Committee, which retained the investment banking firm of Morgan Keegan & Company, Inc., oversees this process on behalf of the Company’s Board of Directors and shareholders.

David L. Turney, the Company’s Chairman of the Board of Directors and Chief Executive Officer said: “Our decision to sell DRI through the 363 process is being undertaken to ensure that we preserve value; absent this action, the company would be unable to continue at least the US operations and fulfill duties to US lenders. Therefore, after careful consideration of the Company’s present financial constraints stemming from, at least in substantial part from the ongoing global economic recession, we believe this action to be necessary as we strive to preserve the maximum value of our enterprise. Our current understanding of the Company’s enterprise value based upon the proposal submitted by our potential buyer, is that no amounts will be returned to any common or preferred shareholder.

Turney further stated: “It is our intent to continue serving our customers uninterrupted right through the 363 process; we have post petition financing in place and there is a pending offer from a potential buyer to acquire the assets of the Company.”

Turney continued: “The bankruptcy filing is only related to the US-based organizations. The international business of DRI, under DRI Europa AB, or more directly the Mobitec group of DRI subsidiaries, collectively represents about 65% of the total DRI Corporation revenue. Since the capital stock of DRI Europa AB is held by DRI, ultimately the entire Company’s ownership will change, although the international Mobitec business should not be affected by the bankruptcy filing.”

In closing, Turney commented: “We also plan to seek the approval of the Securities and Exchange Commission to suspend reporting (including but not limited to reporting on forms 10K and 10Q, for example) and conducting the FY 2011 annual Audit, while we are in the 363 process. However, management does expect to file an 8K in the near future providing additional details regarding this matter.”

ABOUT THE COMPANY

DRI Corporation is a digital communications technology leader in the global surface transportation and transit security markets. We manufacture, sell and service Mobitec® and TwinVision® electronic information display systems and Digital Recorders® engineered systems. These proprietary systems and other related products and services help increase the mobility, flow, safety and security of public transportation agencies and their passengers. From our inception in 1983 through our fiscal year-end on Dec. 31, 2010, we’ve grown our product installations to include public transit fleets in more than 50 countries, our annual sales revenues to $87.3 million, and our global workforce to 275 people. We presently have operations and/or sales offices in Australia, Brazil, Germany, Singapore, Sweden and the United States, a joint venture in India, and corporate administrative offices in Dallas, Texas. We also are expanding into Russia. The next time you see a bus, think of us.SM For more information, visit www.digrec.com.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements concerning the Company’s ability to preserve value, continue operations, and fulfill its obligations to US lenders by utilizing the 363 sale process, as well as any statement, express or implied, concerning future events or expectations or which use words such as “suggest,” “expect,” “fully expect,” “expected,” “appears,” “believe,” “plan,” “anticipate,” “would,” “goal,” “potential,” “potentially,” “range,” “pursuit,” “run rate,” “stronger,” “preliminarily,” “guidance,” “may,” “intent” etc., is a forward-looking statement. These forward-looking statements are subject to risks and uncertainties, including risks and uncertainties relating to whether the Company will be able to preserve value, continue operations, and fulfill its obligations to US lenders by utilizing the 363 sale process, as well as other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K as filed April 15, 2011 and Quarterly Reports on Form 10-Q as filed May 16, 2011, Aug. 15, 2011, and Nov. 21, 2011, particularly those identified in Risk Factors Affecting Our Business. There can be no assurance that any expectation, express or implied, in a forward-looking statement will prove correct or that the contemplated event or result will occur as anticipated.