|         |                                                   |
|---------|---------------------------------------------------|
| • | Mobile software revenue up 19% year-over-year |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | Net income of $0.1 million, non-GAAP earnings of $1.8 million |

|         |                                          |
|---------|------------------------------------------|
| • | Generated free cash flow of $0.8 million |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue: For the three months ended June 30, 2014 mobile software revenue increased 19 percent compared with the comparable fiscal period in 2013 as customers continue to implement our mobile XRS solution. Total revenue was $12.8 million for the three months ended June 30, 2014, compared to $13.4 million for the comparable period in fiscal 2013 as the Company continues to transition from its legacy hardware-based solutions to its mobile solutions. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Gross Margin: Overall gross margin percentage remained consistent at 61 percent for the three months ended June 30, 2014 and 2013. Software gross margins declined 3 percentage points to 70 percent for the three months ended June 30, 2014, compared to the same period in fiscal 2013. The decline in software gross margins is reflective of the Company's commitment to continue to support its legacy solutions while it transitions customers to its XRS mobile solution. |

----

|         |                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Selling, General & Administrative Expenses: Selling, general and administrative expenses decreased to $4.4 million, compared to $5.1 million for the comparable period in fiscal 2013, driven by a decrease in personnel costs. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Research & Development Expenses: Reserve and development expenses were $3.3 million and $2.9 million for the third quarter of fiscal 2014 and 2013, respectively. Research and development expenses increased as the Company successfully released new solution functionality, including: trip management for managing routes and enhancements to fuel tax including print, sign and send automated reporting. This new functionality allows the XRS mobile solution to meet the requirements of larger, more complex fleets, while further differentiating our solution from competitors. |

|         |                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------|
| • | Net Income: GAAP net income for the third quarter was $0.1 million, compared to $0.2 million for the same period in the prior year. |

|         |                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Non-GAAP Earnings: The Company reported non-GAAP earnings of $1.8 million, or $0.06 per diluted share for the third quarter of fiscal 2014, compared to non-GAAP earnings of $2.1 million, or $0.07 per diluted share for the same period in fiscal 2013. |

|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Balance Sheet: As of  June 30, 2014, XRS Corporation had cash of $13.0 million, an increase of $2.6 million since September 30, 2013. As of quarter end, the Company also maintained a debt free balance sheet. |

|         |                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Statement of Cash Flows: During the third quarter of fiscal 2014 the Company generated $1.4 million of cash flow from operations and invested $0.6 million in capital expenditures, Relay assets and software development, resulting in free cash flow of $0.8 million. |

|         |                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Working Capital:  Working capital increased $3.1 million to $16.1 million as of June 30, 2014, compared to $13.0 million in working capital as of September 30, 2013. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue: For the nine months ended June 30, 2014, mobile software revenue increased 14 percent compared to the same period in fiscal 2013. Total revenue was $38.9 million for the nine months ended June 30, 2014, compared to $42.1 million for the comparable period in fiscal 2013. Attrition of legacy customers and a lower average annual contract values on the XRS mobile solution contributed to the decreased software revenue. The Company's focus on the sale of the no upfront hardware cost XRS mobile solution resulted in decreased hardware systems revenue. |

----

|         |                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Non-GAAP Earnings: For the for the nine months ended June 30, 2014, the Company reported non-GAAP earnings of $5.0 million, or $0.17 per diluted share, compared to $6.5 million, or $0.23 per diluted share, for the comparable period in fiscal 2013. |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | For the Three Months Ended |   | For the Nine Months Ended |
|                      | June 30, |   | June 30, |
|                      | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                      |   |   |   |   |   |   |   |
| Revenue:                  |   |   |   |   |   |   |   |
| Software                  | $ | 10,867 |  |   | $ | 11,266 |  |   | $ | 32,465 |  |   | $ | 34,613 |  |
| Hardware systems          | 1,689 |  |   | 1,798 |  |   | 5,610 |  |   | 6,569 |  |
| Services                  | 257 |  |   | 340 |  |   | 825 |  |   | 913 |  |
| Total revenue             | $ | 12,813 |  |   | $ | 13,404 |  |   | $ | 38,900 |  |   | $ | 42,095 |  |
|                      |   |   |   |   |   |   |   |
| Gross margins (deficits): |   |   |   |   |   |   |   |
| Software                  | 70 | % |   | 73 | % |   | 70 | % |   | 73 | % |
| Hardware systems          | 26 | % |   | 18 | % |   | 23 | % |   | 14 | % |
| Services                  | (113 | %) |   | (94 | %) |   | (107 | %) |   | (88 | %) |
| Total gross margin        | 61 | % |   | 61 | % |   | 59 | % |   | 61 | % |

----

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | For the Three Months Ended June 30, |   | For the Nine Months Ended June 30, |
| (In thousands, except per share data)                                 | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                  |   |   |   |   |   |   |   |
| Revenue                                                               |   |   |   |   |   |   |   |
| Software                                                              | $ | 10,867 |  |   | $ | 11,266 |  |   | $ | 32,465 |  |   | $ | 34,613 |  |
| Hardware systems                                                      | 1,689 |  |   | 1,798 |  |   | 5,610 |  |   | 6,569 |  |
| Services                                                              | 257 |  |   | 340 |  |   | 825 |  |   | 913 |  |
| Total revenue                                                         | 12,813 |  |   | 13,404 |  |   | 38,900 |  |   | 42,095 |  |
|                                                                  |   |   |   |   |   |   |   |
| Costs and expenses                                                    |   |   |   |   |   |   |   |
| Cost of goods sold                                                    | 5,049 |  |   | 5,225 |  |   | 15,795 |  |   | 16,577 |  |
| Selling, general and administrative                                   | 4,389 |  |   | 5,094 |  |   | 14,322 |  |   | 15,940 |  |
| Research and development                                              | 3,289 |  |   | 2,873 |  |   | 9,297 |  |   | 8,721 |  |
| Total costs and expenses                                              | 12,727 |  |   | 13,192 |  |   | 39,414 |  |   | 41,238 |  |
|                                                                  |   |   |   |   |   |   |   |
| Operating income (loss)                                               | 86 |  |   | 212 |  |   | (514 | ) |   | 857 |  |
| Net interest and other expense                                        | (6 | ) |   | (35 | ) |   | (52 | ) |   | (82 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                     | 80 |  |   | 177 |  |   | (566 | ) |   | 775 |  |
| Income tax (benefit) expense                                          | — |  |   | (52 | ) |   | (6 | ) |   | 51 |  |
|                                                                  |   |   |   |   |   |   |   |
| Net income (loss)                                                     | 80 |  |   | 229 |  |   | (560 | ) |   | 724 |  |
|                                                                  |   |   |   |   |   |   |   |
| Preferred stock dividends and deemed    dividends | (68 | ) |   | (59 | ) |   | (188 | ) |   | (175 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Net income (loss) to common shareholders                              | $ | 12 |  |   | $ | 170 |  |   | $ | (748 | ) |   | $ | 549 |  |
|                                                                  |   |   |   |   |   |   |   |
| Net income (loss) per common share:                                   |   |   |   |   |   |   |   |
| Basic                                                                 | $ | — |  |   | $ | 0.02 |  |   | $ | (0.07 | ) |   | $ | 0.05 |  |
| Diluted                                                               | $ | — |  |   | $ | 0.01 |  |   | $ | (0.07 | ) |   | $ | 0.03 |  |
|                                                                  |   |   |   |   |   |   |   |
| Weighted average common and common share equivalents:                 |   |   |   |   |   |   |   |
| Basic                                                                 | 11,159 |  |   | 10,858 |  |   | 11,043 |  |   | 10,831 |  |
| Diluted                                                               | 12,184 |  |   | 28,345 |  |   | 11,043 |  |   | 27,766 |  |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |
|                                           | June 30, |   | September 30, |
| (In thousands)                                 | 2014 |   | 2013 |
|                                           | (Unaudited) |   |   |
| Current assets                                 |   |   |   |
| Cash and cash equivalents                      | $ | 13,017 |  |   | $ | 10,445 |  |
| Accounts receivable, net                       | 6,629 |  |   | 6,864 |  |
| Inventories                                    | 1,156 |  |   | 1,710 |  |
| Deferred product costs                         | 426 |  |   | 625 |  |
| Prepaid expenses and other current assets      | 1,639 |  |   | 1,417 |  |
| Total current assets                           | 22,867 |  |   | 21,061 |  |
|                                           |   |   |   |
| Equipment and leasehold improvements, net      | 4,234 |  |   | 5,980 |  |
| Intangible assets, net                         | 3,221 |  |   | 4,578 |  |
| Goodwill                                       | 16,199 |  |   | 16,640 |  |
| Deferred product costs, net of current portion | 112 |  |   | 213 |  |
| Other assets                                   | 532 |  |   | 667 |  |
| Total assets                                   | $ | 47,165 |  |   | $ | 49,139 |  |
|                                           |   |   |   |
| Current liabilities                            |   |   |   |
| Accounts payable                               | $ | 3,118 |  |   | $ | 2,885 |  |
| Accrued expenses                               | 3,236 |  |   | 4,560 |  |
| Deferred revenue                               | 1,648 |  |   | 1,886 |  |
| Total current liabilities                      | 8,002 |  |   | 9,331 |  |
|                                           |   |   |   |
| Deferred revenue, net of current portion       | 225 |  |   | 496 |  |
| Other long-term liabilities                    | 13 |  |   | 62 |  |
| Total liabilities                              | 8,240 |  |   | 9,889 |  |
|                                           |   |   |   |
| Shareholders' equity                           |   |   |   |
| Preferred stock                                | 44,728 |  |   | 44,524 |  |
| Common stock                                   | 112 |  |   | 109 |  |
| Additional paid-in capital                     | 51,445 |  |   | 50,674 |  |
| Accumulated deficit                            | (57,436 | ) |   | (56,688 | ) |
| Accumulated other comprehensive income         | 76 |  |   | 631 |  |
| Total shareholders' equity                     | 38,925 |  |   | 39,250 |  |
| Total liabilities and shareholders' equity     | $ | 47,165 |  |   | $ | 49,139 |  |

----

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |  |  |  |
|                                                                                     | For the Nine Months Ended |
|                                                                                     | June 30, |
| (In thousands)                                                                           | 2014 |   | 2013 |
|                                                                                     |   |   |   |
| Operating activities                                                                     |   |   |   |
| Net (loss) income                                                                        | $ | (560 | ) |   | $ | 724 |  |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |   |   |   |
| Depreciation and amortization                                                            | 4,957 |  |   | 5,080 |  |
| Amortization of deferred financing costs                                                 | 38 |  |   | 57 |  |
| Deferred income taxes                                                                    | — |  |   | (9 | ) |
| Loss on sale or disposal of equipment and leased equipment                               | 47 |  |   | 48 |  |
| Stock-based compensation                                                                 | 550 |  |   | 498 |  |
| Changes in assets and liabilities:                                                       |   |   |   |
| Accounts receivable, net                                                                 | 431 |  |   | 1,056 |  |
| Inventories, net                                                                         | 555 |  |   | 1,165 |  |
| Deferred product costs                                                                   | 299 |  |   | 242 |  |
| Prepaid expenses and other assets                                                        | (269 | ) |   | (672 | ) |
| Accounts payable                                                                         | 460 |  |   | (162 | ) |
| Accrued expenses and other liabilities                                                   | (1,432 | ) |   | (10 | ) |
| Deferred revenue                                                                         | (504 | ) |   | (837 | ) |
| Net cash provided by operating activities                                                | 4,572 |  |   | 7,180 |  |
|                                                                                     |   |   |   |
| Investing activities                                                                     |   |   |   |
| Purchase of equipment and leasehold improvements                                         | (2,023 | ) |   | (2,324 | ) |
| Capitalized software development                                                         | (138 | ) |   | (355 | ) |
| Proceeds from the sale of equipment                                                      | — |  |   | 16 |  |
| Net cash used in investing activities                                                    | (2,161 | ) |   | (2,663 | ) |
|                                                                                     |   |   |   |
| Financing activities                                                                     |   |   |   |
| Revolving line of credit                                                                 | — |  |   | (2,300 | ) |
| Deferred financing costs                                                                 | (30 | ) |   | (50 | ) |
| Proceeds from exercise of options                                                        | 183 |  |   | 13 |  |
| Net cash provided by (used in) financing activities                                      | 153 |  |   | (2,337 | ) |
|                                                                                     |   |   |   |
| Effects of exchange rate on cash                                                         | 8 |  |   | 9 |  |
|                                                                                     |   |   |   |
| Increase in cash and cash equivalents                                                    | 2,572 |  |   | 2,189 |  |
|                                                                                     |   |   |   |
| Cash and cash equivalents                                                                |   |   |   |
| Beginning                                                                                | 10,445 |  |   | 7,120 |  |
| Ending                                                                                   | $ | 13,017 |  |   | $ | 9,309 |  |

----

|                                                                                        |
|----------------------------------------------------------------------------------------|
|                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                   | For the Three Months Ended June 30, |   | For the Nine Months Ended June 30, |
| (In thousands, except per share data)                                                  | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                                   |   |   |   |   |   |   |   |
| Net income (loss) to common shareholders                                               | $ | 12 |  |   | $ | 170 |  |   | $ | (748 | ) |   | $ | 549 |  |
|                                                                                   |   |   |   |   |   |   |   |
| Adjustments:                                                                           |   |   |   |   |   |   |   |
| Depreciation and amortization expense                                                  | 1,603 |  |   | 1,718 |  |   | 4,957 |  |   | 5,080 |  |
| Stock-based compensation                                                               | 150 |  |   | 150 |  |   | 550 |  |   | 498 |  |
| Net interest expense                                                                   | 8 |  |   | 27 |  |   | 25 |  |   | 68 |  |
| Preferred stock dividends and deemed dividends                                         | 68 |  |   | 59 |  |   | 188 |  |   | 175 |  |
| Income taxes                                                                           | — |  |   | (52 | ) |   | (6 | ) |   | 51 |  |
| Other                                                                                  | — |  |   | — |  |   | — |  |   | 50 |  |
| Total adjustments                                                                      | 1,829 |  |   | 1,902 |  |   | 5,714 |  |   | 5,922 |  |
|                                                                                   |   |   |   |   |   |   |   |
| Non-GAAP earnings                                                                      | $ | 1,841 |  |   | $ | 2,072 |  |   | $ | 4,966 |  |   | $ | 6,471 |  |
|                                                                                   |   |   |   |   |   |   |   |
| Non-GAAP earnings per diluted share                                                    | $ | 0.06 |  |   | $ | 0.07 |  |   | $ | 0.17 |  |   | $ | 0.23 |  |
|                                                                                   |   |   |   |   |   |   |   |
| Shares used in calculating non-GAAP earnings     per diluted share | 28,819 |  |   | 28,345 |  |   | 28,773 |  |   | 27,766 |  |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |
|                                                   | June 30, |   | September 30, |
| (In thousands)                                         | 2014 |   | 2013 |
|                                                   |   |   |   |
| Current assets                                         | $ | 22,867 |  |   | $ | 21,061 |  |
| Current liabilities                                    | (8,002 | ) |   | (9,331 | ) |
| Net current assets                                     | 14,865 |  |   | 11,730 |  |
| Current portion of deferred revenue net deferred costs | 1,222 |  |   | 1,261 |  |
| Working capital                                        | $ | 16,087 |  |   | $ | 12,991 |  |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | For the Three Months Ended June 30, |   | For the Nine Months Ended June 30, |
| (In thousands)                                   | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                             |   |   |   |   |   |   |   |
| Net cash provided by operating activities        | $ | 1,395 |  |   | $ | 2,933 |  |   | $ | 4,572 |  |   | $ | 7,180 |  |
| Net cash used in investing activities:           |   |   |   |   |   |   |   |
| Purchase of equipment and leasehold improvements | (84 | ) |   | (95 | ) |   | (604 | ) |   | (319 | ) |
| Purchase of Relay assets                         | (408 | ) |   | (843 | ) |   | (1,419 | ) |   | (2,005 | ) |
| Capitalized software development                 | (110 | ) |   | (270 | ) |   | (138 | ) |   | (355 | ) |
| Proceeds from the sale of equipment              | — |  |   | — |  |   | — |  |   | 16 |  |
| Net cash used in investing activities            | (602 | ) |   | (1,208 | ) |   | (2,161 | ) |   | (2,663 | ) |
|                                             |   |   |   |   |   |   |   |
| Free cash flow                                   | $ | 793 |  |   | $ | 1,725 |  |   | $ | 2,411 |  |   | $ | 4,517 |  |