GENERAL

Digital Recorders, Inc. (the "Company" and "DRI") was incorporated in 1983 and became a public company through an initial public offering in November 1994. DRI itself, or through contractors, designs, manufactures, sells, and services information technology and audio surveillance technology products through two major business segments. These two business segments are 1) the transportation products segment; and 2) the law enforcement and surveillance segment.

The transportation products segment consists of the Digital Recorders business unit division and two wholly owned subsidiaries, Transit-Media GmbH of Germany and TwinVision of North America,...