8-K

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

        Date of Report (Date of Earliest Event Reported): August 3, 2007

                                -----------------

                                 DRI Corporation
             (Exact Name of Registrant as Specified in Its Charter)



        North Carolina                    1-13408                56-1362926
(State or Other Jurisdiction     (Commission File Number)      (IRS Employer
       of Incorporation)                                     Identification No.)

                5949 Sherry Lane, Suite 1050, Dallas, Texas 75225
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's Telephone Number, Including Area Code (214) 378-8992

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))






ITEM 7.01.  Regulation FD Disclosure

On August 3, 2007, DRI Corporation noted that President Bush has signed into law
H.R. 1, Improving America's Security Act of 2007, which significantly increases
transit security funding -- approximately $3.4 billion over federal fiscal years
2008-2011.

A copy of the Company's press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference. This Form 8-K and the attached exhibit are
furnished to, but not filed with, the Securities and Exchange Commission.

ITEM 9.01.  Financial Statements and Exhibits

(a) Exhibits.
    99.1    Press release dated August 3, 2007.






Signature(s)

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                           DRI CORPORATION

Date: August 3, 2007       By: /s/ STEPHEN P. SLAY
                              --------------------------------------------------
                              Stephen P. Slay
                              Vice President, Chief Financial Officer,
                              Secretary and Treasurer







INDEX TO EXHIBITS

EXHIBIT
NUMBER    DESCRIPTION
- -------   -----------
   99.1   Press release dated August 3, 2007.

EX-99.1

                                                                    Exhibit 99.1

      DRI Corporation Notes Federal Transit Security Funding Legislation
                                Signed into Law

                       Record Funding for Transit Security

    DALLAS--(BUSINESS WIRE)--Aug. 3, 2007--DRI Corporation (DRI)
(NASDAQ: TBUS), a digital communications technology leader in the
domestic and international surface transportation and transit security
markets, noted today that President Bush has signed into law H.R. 1,
Improving America's Security Act of 2007, which significantly
increases transit security funding -- approximately $3.4 billion over
federal fiscal years 2008-2011.

    "This law sets a new transit security funding record. In our
opinion, this establishes a trend for increased security-related
funding -- a trend that is important to our business. As the
appropriation process that follows takes the funds to our customers,
we will be there with our products. It is very significant that these
funds do not require local matching funds for projects to be
implemented under the legislation. We expect to comment further on
this important development during the shareholder conference call that
will accompany our earnings press release on or about Aug. 14," David
L. Turney, the Company's Chairman, President and Chief Executive
Officer, said.

    Authorized approximate federal funding levels are $650 million for
fiscal year 2008, $750 million for fiscal year 2009, $900 million for
fiscal year 2010, and $1.1 billion for fiscal year 2011.

    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,
including, without limitations, statements concerning the Company's
belief that newly enacted legislation will establish a trend for
increased security-related funding, statements that such an increase
would be significantly important to our business, statements implying
that we could meet an expected increase in demands for our products
and services, as well as statements that contain 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 risks that the newly enacted funding legislation may not
establish a trend toward for public transit security funding, risks
that such increased funding may not in turn benefit the Company's
business and operations, risks that there may not be an increased
demand for our products, risks that we may not be able to meet an
increase in the demand for our products and services, which may arise
as a result of this increased security related funding, as well as
other risks and uncertainties as set forth in our Annual Report on
Form 10-K filed March 28, 2007, particularly those identified in Risk
Factors Affecting Our Business, as those risk factors are updated and
supplemented by our quarterly reports 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