----

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | Mobile software revenue grew 20 percent in fiscal 2013 compared to the same period in the prior year . |

|         |                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Overall gross margin improved to 60 percent of revenue for fiscal 2013 compared to 51 percent for fiscal 2012 as the result of the continuing shift to software revenue. |

|         |                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net income of $0.9 million contributed to positive free cash flow of $5.6 million for fiscal 2013, compared to a negative free cash flow of $3.8 million for fiscal 2012. |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | The Company signed 322 new mobile customers during fiscal 2013. |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | For the Three Months Ended | For the Year Ended |
|                      | September 30, | September 30, |
|                      | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                      |   |   |   |   |   |   |   |
| Revenue:                  |   |   |   |   |   |   |   |
| Software                  | $ | 11,062 |  |   | $ | 12,233 |  |   | $ | 45,675 |  |   | $ | 47,455 |  |
| Hardware systems          | 2,771 |  |   | 2,325 |  |   | 9,340 |  |   | 13,893 |  |
| Services                  | 268 |  |   | 429 |  |   | 1,181 |  |   | 1,741 |  |
| Total revenue             | $ | 14,101 |  |   | $ | 14,987 |  |   | $ | 56,196 |  |   | $ | 63,089 |  |
|                      |   |   |   |   |   |   |   |
| Gross margins (deficits): |   |   |   |   |   |   |   |
| Software                  | 72 | % |   | 76 | % |   | 73 | % |   | 73 | % |
| Hardware systems          | 28 | % |   | (20 | %) |   | 18 | % |   | (10 | %) |
| Services                  | (103 | %) |   | 1 | % |   | (92 | %) |   | (34 | %) |
| Total gross margin        | 60 | % |   | 59 | % |   | 60 | % |   | 51 | % |

|    |                                                                                                                                                                                                   |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1. | Invest resources to ensure continued success in the deployment of the XRS mobile solution, which offers a cost-efficient, easy to install electronic logging device to small and mid-size fleets. |

|    |                                                                                                                                                      |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | Align with strategic third-party providers to broaden the capabilities of the XRS mobile solution to meet the more complex demands of larger fleets. |

|    |                                                                                                                                                                                                     |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3. | Continue to drive near-term mobile-based sales to small to mid-sized fleets with the XRS solution and offer on-going support and service to our existing Turnpike, XataNet and MobileMax customers. |

|    |                                                                                                                                                                                                                      |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4. | Remain diligent in positioning XRS Corporation for long-term financial success that strives to capitalize on a growing market as the result of the mobile revolution converging with the recent government mandates. |

----

----

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | For the Three Months Ended September 30, |   | For the Year Ended September 30, |
| (In thousands, except per share data)                                 | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                  |   |   |   |   |   |   |   |
| Revenue                                                               |   |   |   |   |   |   |   |
| Software                                                              | $ | 11,062 |  |   | $ | 12,233 |  |   | $ | 45,675 |  |   | $ | 47,455 |  |
| Hardware systems                                                      | 2,771 |  |   | 2,325 |  |   | 9,340 |  |   | 13,893 |  |
| Services                                                              | 268 |  |   | 429 |  |   | 1,181 |  |   | 1,741 |  |
| Total revenue                                                         | 14,101 |  |   | 14,987 |  |   | 56,196 |  |   | 63,089 |  |
|                                                                  |   |   |   |   |   |   |   |
| Cost of goods sold                                                    | 5,691 |  |   | 6,157 |  |   | 22,268 |  |   | 30,657 |  |
| Selling, general and administrative                                   | 5,117 |  |   | 5,287 |  |   | 21,057 |  |   | 24,459 |  |
| Research and development                                              | 3,013 |  |   | 3,819 |  |   | 11,734 |  |   | 14,798 |  |
| Impairment of intangible asset                                        | — |  |   | — |  |   | — |  |   | 3,500 |  |
| Total costs and expenses                                              | 13,821 |  |   | 15,263 |  |   | 55,059 |  |   | 73,414 |  |
|                                                                  |   |   |   |   |   |   |   |
| Operating income (loss)                                               | 280 |  |   | (276 | ) |   | 1,137 |  |   | (10,325 | ) |
| Net interest and other (expense) income                               | (34 | ) |   | 33 |  |   | (116 | ) |   | (264 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                     | 246 |  |   | (243 | ) |   | 1,021 |  |   | (10,589 | ) |
| Income tax expense (benefit)                                          | 104 |  |   | (80 | ) |   | 155 |  |   | (550 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Net income (loss)                                                     | 142 |  |   | (163 | ) |   | 866 |  |   | (10,039 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Preferred stock dividends and deemed    dividends | (60 | ) |   | (58 | ) |   | (235 | ) |   | (177 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Net income (loss) to common shareholders                              | $ | 82 |  |   | $ | (221 | ) |   | $ | 631 |  |   | $ | (10,216 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Net income (loss) per common share:                                   |   |   |   |   |   |   |   |
| Basic                                                                 | $ | 0.01 |  |   | $ | (0.02 | ) |   | $ | 0.06 |  |   | $ | (0.95 | ) |
| Diluted                                                               | $ | — |  |   | $ | (0.02 | ) |   | $ | 0.03 |  |   | $ | (0.95 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Weighted average common and common share equivalents:                 |   |   |   |   |   |   |   |
| Basic                                                                 | 10,883 |  |   | 10,795 |  |   | 10,844 |  |   | 10,734 |  |
| Diluted                                                               | 28,814 |  |   | 10,795 |  |   | 28,028 |  |   | 10,734 |  |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |
|                                           | September 30, |   | September 30, |
| (In thousands)                                 | 2013 |   | 2012 |
|                                           | (Unaudited) |   |   |
| Current assets                                 |   |   |   |
| Cash and cash equivalents                      | $ | 10,445 |  |   | $ | 7,120 |  |
| Accounts receivable, net                       | 6,864 |  |   | 7,835 |  |
| Inventories                                    | 1,710 |  |   | 3,811 |  |
| Deferred product costs                         | 625 |  |   | 770 |  |
| Prepaid expenses and other current assets      | 1,417 |  |   | 1,406 |  |
| Total current assets                           | 21,061 |  |   | 20,942 |  |
|                                           |   |   |   |
| Equipment and leasehold improvements, net      | 5,980 |  |   | 7,313 |  |
| Intangible assets, net                         | 4,578 |  |   | 6,487 |  |
| Goodwill                                       | 16,640 |  |   | 17,288 |  |
| Deferred product costs, net of current portion | 213 |  |   | 425 |  |
| Other assets                                   | 667 |  |   | 351 |  |
| Total assets                                   | $ | 49,139 |  |   | $ | 52,806 |  |
|                                           |   |   |   |
| Current liabilities                            |   |   |   |
| Revolving line of credit                       | $ | — |  |   | $ | 2,300 |  |
| Accounts payable                               | 2,885 |  |   | 3,436 |  |
| Accrued expenses                               | 4,560 |  |   | 4,832 |  |
| Deferred revenue                               | 1,886 |  |   | 2,314 |  |
| Total current liabilities                      | 9,331 |  |   | 12,882 |  |
|                                           |   |   |   |
| Deferred revenue, net of current portion       | 496 |  |   | 1,077 |  |
| Deferred tax liabilities                       | — |  |   | 9 |  |
| Other long-term liabilities                    | 62 |  |   | 314 |  |
| Total liabilities                              | 9,889 |  |   | 14,282 |  |
|                                           |   |   |   |
| Shareholders' equity                           |   |   |   |
| Preferred stock                                | 44,524 |  |   | 44,292 |  |
| Common stock                                   | 109 |  |   | 108 |  |
| Additional paid-in capital                     | 50,674 |  |   | 49,979 |  |
| Accumulated deficit                            | (56,688 | ) |   | (57,319 | ) |
| Accumulated other comprehensive income         | 631 |  |   | 1,464 |  |
| Total shareholders' equity                     | 39,250 |  |   | 38,524 |  |
| Total liabilities and shareholders' equity     | $ | 49,139 |  |   | $ | 52,806 |  |

----

|                                                                                                    |
|----------------------------------------------------------------------------------------------------|
|                                                                                                    |  |  |  |  |  |  |  |
|                                                                                               | For the Year Ended |
|                                                                                               | September 30, |
| (In thousands)                                                                                     | 2013 |   | 2012 |
|                                                                                               |   |   |   |
| Operating activities                                                                               |   |   |   |
| Net income (loss)                                                                                  | $ | 866 |  |   | $ | (10,039 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |   |   |
| Depreciation and amortization                                                                      | 6,783 |  |   | 8,013 |  |
| Impairment of intangible asset                                                                     | — |  |   | 3,500 |  |
| Amortization of deferred financing costs                                                           | 81 |  |   | 32 |  |
| Deferred income taxes                                                                              | (9 | ) |   | (617 | ) |
| Loss on sale or disposal of equipment and leased equipment                                         | 80 |  |   | 76 |  |
| Stock-based compensation                                                                           | 644 |  |   | 789 |  |
| Reversal of unearned cash portion of contingent earn-out                                           | — |  |   | (51 | ) |
| Changes in assets and liabilities:                                                                 |   |   |   |
| Accounts receivable, net                                                                           | 956 |  |   | 1,298 |  |
| Inventories, net                                                                                   | 2,062 |  |   | (437 | ) |
| Deferred product costs                                                                             | 356 |  |   | 810 |  |
| Prepaid expenses and other assets                                                                  | (171 | ) |   | (48 | ) |
| Accounts payable                                                                                   | (657 | ) |   | (1,787 | ) |
| Accrued expenses and other liabilities                                                             | (513 | ) |   | (519 | ) |
| Deferred revenue                                                                                   | (1,004 | ) |   | (1,926 | ) |
| Net cash provided by (used in) operating activities                                                | 9,474 |  |   | (906 | ) |
|                                                                                               |   |   |   |
| Investing activities                                                                               |   |   |   |
| Purchase of equipment and leasehold improvements                                                   | (3,526 | ) |   | (2,943 | ) |
| Capitalized software development                                                                   | (355 | ) |   | — |  |
| Proceeds from the sale of equipment                                                                | 16 |  |   | 2 |  |
| Net cash used in investing activities                                                              | (3,865 | ) |   | (2,941 | ) |
|                                                                                               |   |   |   |
| Financing activities                                                                               |   |   |   |
| Revolving line of credit                                                                           | (2,300 | ) |   | 2,300 |  |
| Payments on debt obligations                                                                       | — |  |   | (3,627 | ) |
| Deferred financing costs                                                                           | (50 | ) |   | (97 | ) |
| Proceeds from exercise of options                                                                  | 51 |  |   | — |  |
| Net cash used in financing activities                                                              | (2,299 | ) |   | (1,424 | ) |
|                                                                                               |   |   |   |
| Effects of exchange rate on cash                                                                   | 15 |  |   | (16 | ) |
|                                                                                               |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                   | 3,325 |  |   | (5,287 | ) |
|                                                                                               |   |   |   |
| Cash and cash equivalents                                                                          |   |   |   |
| Beginning                                                                                          | 7,120 |  |   | 12,407 |  |
| Ending                                                                                             | $ | 10,445 |  |   | $ | 7,120 |  |

----

|                                                                                              |
|----------------------------------------------------------------------------------------------|
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                         | For the Three Months Ended September 30, |   | For the Year Ended September 30, |
| (In thousands, except per share data)                                                        | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                                         |   |   |   |   |   |   |   |
| Net income (loss) to common shareholders                                                     | $ | 82 |  |   | $ | (221 | ) |   | $ | 631 |  |   | $ | (10,216 | ) |
|                                                                                         |   |   |   |   |   |   |   |
| Adjustments:                                                                                 |   |   |   |   |   |   |   |
| Depreciation & amortization expense                                                      | 1,703 |  |   | 1,695 |  |   | 6,783 |  |   | 8,013 |  |
| Impairment of intangible asset                                                               | — |  |   | — |  |   | — |  |   | 3,500 |  |
| Stock-based compensation                                                                     | 146 |  |   | 161 |  |   | 644 |  |   | 789 |  |
| Net interest expense                                                                         | 27 |  |   | 16 |  |   | 95 |  |   | 320 |  |
| Preferred stock dividends and deemed dividends                                               | 60 |  |   | 58 |  |   | 235 |  |   | 177 |  |
| Income taxes                                                                                 | 104 |  |   | (80 | ) |   | 155 |  |   | (550 | ) |
| Other                                                                                        | — |  |   | 400 |  |   | 50 |  |   | 400 |  |
| Total adjustments                                                                            | 2,040 |  |   | 2,250 |  |   | 7,962 |  |   | 12,649 |  |
|                                                                                         |   |   |   |   |   |   |   |
| Non-GAAP earnings                                                                            | $ | 2,122 |  |   | $ | 2,029 |  |   | $ | 8,593 |  |   | $ | 2,433 |  |
|                                                                                         |   |   |   |   |   |   |   |
| Non-GAAP earnings per diluted share                                                          | $ | 0.07 |  |   | $ | 0.07 |  |   | $ | 0.31 |  |   | $ | 0.09 |  |
|                                                                                         |   |   |   |   |   |   |   |
| Shares used in calculating non-GAAP earnings      per diluted share | 28,814 |  |   | 27,344 |  |   | 28,028 |  |   | 27,260 |  |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |
|                                                   | September 30, |   | September 30, |
| (In thousands)                                         | 2013 |   | 2012 |
|                                                   |   |   |   |
| Current assets                                         | $ | 21,061 |  |   | $ | 20,942 |  |
| Current liabilities                                    | (9,331 | ) |   | (12,882 | ) |
| Net current assets                                     | 11,730 |  |   | 8,060 |  |
| Current portion of deferred revenue net deferred costs | 1,261 |  |   | 1,544 |  |
| Working capital                                        | $ | 12,991 |  |   | $ | 9,604 |  |

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                     | For the Three Months Ended September 30, |   | For the Year Ended September 30, |
|                                                                     | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                     |   |   |   |   |   |   |   |
| Net cash provided by (used in) operating activities                      | $ | 2,294 |  |   | $ | (583 | ) |   | $ | 9,474 |  |   | $ | (906 | ) |
| Net cash used in investing activities:                                   |   |   |   |   |   |   |   |
| Purchase of equipment and leasehold     improvements | (194 | ) |   | (35 | ) |   | (513 | ) |   | (2,012 | ) |
| Purchase of Relay assets                                                 | (1,008 | ) |   | (372 | ) |   | (3,013 | ) |   | (931 | ) |
| Capitalized software development                                         | — |  |   | — |  |   | (355 | ) |   | — |  |
| Proceeds from the sale of equipment                                      | — |  |   | — |  |   | 16 |  |   | 2 |  |
| Net cash used in investing activities                                    | (1,202 | ) |   | (407 | ) |   | (3,865 | ) |   | (2,941 | ) |
|                                                                     |   |   |   |   |   |   |   |
| Free cash flow                                                           | $ | 1,092 |  |   | $ | (990 | ) |   | $ | 5,609 |  |   | $ | (3,847 | ) |