ATLANTA---Nov. 8, 2001--T/R SYSTEMS, INC., a leader in developing innovative software solutions for the management and production of digital communications, reported today that it anticipates lower than expected revenue in its third fiscal quarter ended October 31, 2001. T/R Systems announced that revenue for the third quarter that ended October 31, 2001 is expected to be between $3.0 million and $3.4 million. Loss per share for the quarter is expected to be in the range of about $0.26 to $0.29. "We expected this to be a difficult quarter due to continued weakness in the economy,'' said Mike Kohlsdorf, President and CEO of T/R Systems. "Our current focus is on the successful launch of our products into the Xerox, Canon and Lanier channels as well as the implementation of our new product strategies into our existing partner channels. Additionally, we are focused on reducing our expenses. To that end, we initiated a staffing reduction of 21 employees and contractors over the past week. When added to the staffing reduction we took in the third quarter of this fiscal year, we have reduced our headcount by a net of 38 employees and contractors, or 25%, since August 1, 2001.'' T/R Systems will hold a conference call at 8:00 a.m. (EST) today to further discuss these results. The conference call will be broadcast via the Internet as well as telephone. To listen over the Internet, participants should visit www.trsystems.com/msinvestorrelations.htm and follow the directions. Participants wishing to listen via telephone should call 1-877-325-1662 in the United States and Canada or 1-706-679-6056 outside the United States and Canada by 7:50 a.m. (EST) today and reference the "T/R Systems Business Update''. The Company expects to release complete results for the most recent quarter on Tuesday, November 27, 2001.