Exhibit 99.1

                  DRI Corporation Announces Plans to
                Incorporate Digital Recorders Division

    North Carolina Business Unit to Be Officially Known as Digital
                            Recorders, Inc.


    DALLAS--(BUSINESS WIRE)--August 2, 2007--DRI Corporation (DRI)
(NASDAQ: TBUS), a digital communications technology leader in the
domestic and international surface transportation and transit security
markets, announced today that it is in the process of incorporating
its Digital Recorders (DR) business unit in Durham, N.C., to become a
wholly owned subsidiary of DRI.

    The DR business unit, established in 1983, will be officially
known as Digital Recorders, Inc. Managed by Vice President and General
Manager Tanya L. Johnson, a transit industry veteran with more than 15
years' experience, the DR business unit develops and manufactures
intelligent transportation products for the transit industry. Its
products include: computer-aided dispatch/automatic vehicle location
systems; automatic vehicle monitoring systems; Talking Bus(R)
automatic voice announcement systems; VacTell(TM) video actionable
intelligence systems; and more.

    "We determined - and our shareholders recently agreed - that our
previous parent Company name of Digital Recorders, Inc. had
technology-specific implications that no longer reflected the full
breadth of our overall business. As the parent Company grows into
other technology areas, its simplified identification as the
technology-neutral 'DRI' will be more appropriate. With the official
incorporation of the DR business unit, wherein technology-specific
implications are prevalent, the ability to use the valuable brand name
of Digital Recorders, Inc., will be beneficial," David L. Turney, the
Company's Chairman, President, and Chief Executive Officer, said.

    According to Mr. Turney, the DR business unit's engineered systems
are a key area of focus for future growth opportunities for the
Company. "This is especially true, in our opinion, in context of
security-related products and technology. With recent actions in
Congress to authorize federal funding at record-high levels to improve
U.S. surface mass transit security, that area may represent a growth
opportunity of even greater dimensions. Bearing that in mind, it is
especially prudent for us to better organize our business by
incorporating the related business unit."

    For more information about the DR business unit, go to
www.digitalrecorders.com.

    CORPORATE STRUCTURE

    DRI's U.S. operations include TwinVision na, Inc. and the DR
business unit, both located in Durham, N.C. The Company's
international operations include: Mobitec AB in Herrljunga, Sweden;
Mobitec GmbH in Ettlingen, Germany; Mobitec Australia Pty Ltd in
Peakhurst NSW, Australia; Mobitec Brazil Ltda, a 50-percent owned
joint venture in Caxias do Sul, Brazil; and Cast Master Mobitec India
Private Limited, a 51-percent owned joint venture in New Delhi, India.

    On April 30, 2007, the Company announced that it had sold its
Digital Audio Corporation subsidiary to Dolphin Direct Equity
Partners, L.P., a private investment firm and an affiliate of Dolphin
Offshore Partners, L.P.

    CORPORATE OFFICERS

    The Company's corporate officers are:

    --  David L. Turney, Chairman, President and Chief Executive
        Officer;

    --  Stephen P. Slay, Vice President, Chief Financial Officer,
        Corporate Secretary and Treasurer;

    --  Lawrence A. Hagemann, Vice President, Chief Technology
        Officer, and Assistant Corporate Secretary;

    --  Rob R. Taylor, Vice President, Chief Operating Officer, North
        Carolina Operations;

    --  William F. Fay Jr., Vice President and General Manager,
        TwinVision na, Inc.;

    --  Tanya L. Johnson, Vice President and General Manager, DR
        business unit; and

    --  Veronica B. Marks, Manager, Corporate Communications and
        Assistant Corporate Secretary.

    Visit the Company's Web site, www.digrec.com, for complete officer
biographies.

    ABOUT THE COMPANY

    DRI is a digital communications technology leader in the domestic
and international public transportation and transit security markets.
Our products include: TwinVision(R) and Mobitec(R) electronic
destination sign systems, Talking Bus(R) voice announcement systems,
Digital Recorders(R) Internet-based passenger information and
automatic vehicle location/monitoring systems, and VacTell(TM) video
actionable intelligence systems. Our products help increase the
mobility, flow, safety, and security of people who rely upon
transportation infrastructure around the globe. Using proprietary
hardware and software applications, our products provide
easy-to-understand, real-time information that assists users and
operators of transit bus and rail vehicles in locating, identifying,
boarding, tracking, scheduling, and managing those vehicles. Our
products also aid transit vehicle operators in their quest to increase
ridership and reduce fuel consumption, as well as to identify and
mitigate security risks on transit vehicles. Positioned not only to
serve and address mobility, energy conservation, and environmental
concerns, our products also serve the growing U.S. Homeland Security
market. For more information about the Company and its operations
worldwide, go to 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, any statement, express or implied, concerning future
events or expectations, is a forward-looking statement, including,
without limitation, comments pertaining to the potential marketing and
branding benefits of the DRI Corporation and its DR business unit's
pending legal name of Digital Recorders, Inc., statements relating to
the growth opportunities for the Company related to the DR business
unit's engineered systems and the growth potential that may result
from increased funding available for mass transit security related
products and technologies, as well as statements which include words
such as "expect," "fully expect," "expected," "appears," "believe,"
"plan," "anticipate," "would," "goal," "potential," "potentially,"
"range," "pursuit," "run rate," "stronger," "preliminarily," etc.
These forward looking statements are subject to risks and
uncertainties, including, the risk that we may not realize the
anticipated marketing and branding benefits with our newly designated
corporate names, that we may not achieve growth as a result of our
engineered systems, risks that increased funding for public transit
may not be allocated in significant amounts of transit security
related products or if so that we may not benefit from such increased
funding and/or spending, as well as those risks identified in our
Annual Report on Form 10-K filed March 28, 2007 under the heading
"Risk Factors Affecting Our Business," as supplemented and updated by
our subsequent quarterly filings on Form 10-Q. 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.


    CONTACT: Veronica B. Marks
             Manager, Corporate Communications
             DRI Corporation
             Phone: (214) 378-4776
             Fax: (214) 378-8437
             E-Mail: veronicam@digrec.com