- Company Holds 100 Percent of Mobitec Brazil Ltda From July 1, 2009
- Management Anticipates Potential Market Opportunities in Future
World Sports Events
DRI
Corporation (DRI) (NASDAQ: TBUS), a digital communications
technology leader in the global surface transportation and transit
security markets, noted today that its Sweden-based Mobitec AB (Mobitec)
subsidiary's recent acquisition of the remaining 50 percent interest in
the Mobitec Brazil Ltda (Mobitec Brazil) joint venture has officially
been registered with the Brazilian government.
The Company's 100 percent ownership of Mobitec Brazil was established
July 1, 2009. Acquisition details are available via a Form 8-K filed
July 27, 2009 with the U.S. Securities and Exchange Commission.
David L. Turney, the Company's Chairman, President and Chief Executive
Officer, said: "As previously reported, through our Mobitec AB
subsidiary in Sweden, we have acquired the remaining 50 percent interest
in our Mobitec Brazil Ltda subsidiary; the effective legal ownership and
control date was July 1, 2009. The subsequent required official registry
actions, a 90-day formal procedure prescribed by the Brazilian
government, have been completed. We believe the Latin American transit
market, which has seen considerable growth in recent years, remains ripe
for continued expansion. Our acquisition not only further expands our
global reach, but it may help open additional doors for our products in
the Latin American transit market. In particular, we anticipate that
opportunities may emerge from the significant investments that are
expected to be made to Brazil's transportation infrastructure due to the
upcoming FIFA World Cup™ in 2014 and the Games of the XXXI Olympiad in
2016."
POTENTIAL TRANSIT TIES TO WORLD SPORTS EVENTS
Mr. Turney said: "The Fédération Internationale de Football Association
Executive Committee has announced that the FIFA World Cup™ will take
place in Brazil in 2014 and the International Olympic Committee has
announced the election of Rio de Janeiro as the Host City of the Games
of the XXXI Olympiad in 2016. When these major world sports events take
place in Brazil, there is no doubt that public transportation will play
a vital role in the mobility and transport of sports enthusiasts,
tourists, and area citizens to world-class Brazilian venues. According
to a Business News Americas report
on June 1, 2009, 'State and city authorities must now draw up timelines
and establish responsibilities for projects such as the expansion of
highways, ports and airports, building hotels and stadiums, as well as
safety measures.' We believe that our Mobitec Brazil subsidiary is well
positioned to help regional bus vehicle manufacturers and transit
authorities prepare public transit fleets for these historic events."
ABOUT THE MOBITEC GROUP
Mobitec, a global supplier of electronic information display systems, is
highly respected for its products, technology, service, and quality.
Mobitec is based in Herrljunga, Sweden. It presently operates business
units in Australia, Brazil, Germany and Singapore, as well as a joint
venture in India. For more information, visit www.mobitec.eu.
ABOUT THE COMPANY
DRI Corporation is a digital communications technology leader in the
global surface transportation and transit security markets. Our products
include: TwinVision® and Mobitec® electronic destination sign systems,
Talking Bus® voice announcement systems, Digital Recorders®
Internet-based passenger information and automatic vehicle
location/monitoring systems, and VacTell® 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, statements concerning the growth opportunities for the
Company in the Latin American transit market; the size of the Latin
American transit market for our products; future growth of the Latin
American transit market for our products; the future profit stream of
Mobitec Brazil Ltda; statements made by Business
News Americas, the Fédération Internationale de Football
Association Executive Committee and/or the International Olympic
Committee; as well as any statement, express or implied, concerning
future events or expectations or which use words such as "expect,"
"fully expect," "expected," "appears," "believe," "plan," "anticipate,"
"would," "goal," "potential," "potentially," "range," "pursuit," "run
rate," "stronger," "preliminarily," "forecast," "opinion," etc., is a
forward-looking statement. These forward-looking statements are subject
to risks and uncertainties, including risks and uncertainties associated
with the timing of the deliveries of orders; the risk that future
anticipated growth in the Latin American transit market may prove
inaccurate; the risk that our estimate of the size of the Latin American
transit market for our products may prove inaccurate; the risk that our
estimate for the growth of the Latin American transit market for our
products may prove inaccurate; the risk that Mobitec Brazil Ltda may not
be profitable in future periods; the risk that statements made by Business
News Americas, the Fédération Internationale de Football
Association Executive Committee and/or the International Olympic
Committee may not be true; as well as other risks and uncertainties set
forth in our Annual Report on Form 10-K filed March 31, 2009, and as
updated in our Quarterly Report on Form 10-Q filed Nov. 16, 2009,
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.
DRI Corporation Contact: Veronica B. Marks Manager,
Corporate Communications Phone: (214) 378-4776 Fax: (214)
378-8437 E-Mail: ir@digrec.com |