The Company Has Received Multiple Indications of Interest for the Sale of its AI Logistics Business

Fort Lauderdale, FL, Aug. 25, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME ) – a leading provider of AI-powered logistics solutions, today announced that the Company is evaluating strategic alternatives for its SemiCab business.

The Company previously announced that it is actively evaluating a potential business combination with a leading company operating in the rapidly growing energy infrastructure market supporting data centers. The potential business combination, if completed, would result in the energy business becoming the Company’s principal operating business on a going forward basis.

In connection with its evaluation of the energy company, the Company is also evaluating strategic alternatives for its SemiCab business. These alternatives include the continued operation and development of SemiCab, the spin-off of SemiCab as a separate company, and a sale of SemiCab. No determination has been made regarding the ultimate disposition of SemiCab.

We are very pleased with all that we have accomplished growing SemiCab into a leading AI-powered technology platform utilized by a number of Fortune 500, multi-national enterprise customers in India,” stated Gary Atkinson, Chief Executive Officer of Algorhythm Holdings, Inc. “We have grown SemiCab significantly in less than two years and see tremendous growth opportunities for it.”

“With that said, in light of the new direction we are heading with our business, we are considering a variety of strategic alternatives for our SemiCab business,” continued Atkinson. “We have received indications of interest from multiple parties concerning a potential purchase of SemiCab and are actively evaluating these opportunities. We believe that our SemiCab business and its AI technology platform have significant value and would be a highly desired addition to the right distribution and logistics company that wants to integrate the technology into its existing transportation network.”

The Company emphasized that it has not entered into a binding definitive agreement with respect to the proposed acquisition of the energy company and has not made a final determination regarding any particular strategic alternative for SemiCab. There can be no assurance that the Company's strategic review or discussions regarding the energy company or SemiCab will result in the execution of a definitive agreement or the completion of any transaction.

Any potential transaction involving either business would be subject to the negotiation and execution of definitive agreements, completion of due diligence, receipt of applicable Board and shareholder approvals, compliance with applicable regulatory and Nasdaq requirements, satisfaction of any financing conditions, and compliance with customary closing conditions.

The Company does not intend to provide additional updates regarding the matters discussed herein unless and until it determines that further disclosure is appropriate or required by applicable securities laws.

About Algorhythm Holdings

Algorhythm Holdings, Inc. is a leading AI technology company that owns and operates SemiCab. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com .

Investor Relations Contact
Brendan Hopkins
407-645-5295
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www.algoholdings.com

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. Such statements include statements about the Company’s strategic review and evaluation of potential acquisition candidates. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the Securities Exchange Commission (the “SEC”), including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s other filings with the SEC. Additional risks and uncertainties include, but are not limited to: the risk that the Company may not enter into a binding definitive agreement with respect to the potential business combination; the risk that the Company’s strategic review may not result in the completion of any transaction; risks related to the negotiation and execution of definitive agreements, completion of due diligence, obtaining applicable Board and shareholder approvals, satisfying regulatory and Nasdaq requirements, securing financing, if required, and satisfying other customary closing conditions; the risk that the acquisition, if completed, would result in the energy business becoming the Company’s principal operating business, which would represent a significant change in the Company’s business and operations; risks related to the Company’s ability to successfully integrate and operate a business in the energy infrastructure sector; risks associated with the energy infrastructure market supporting data centers, including changes in power demand from artificial intelligence, cloud computing and data center development; risks related to the scalability, performance and market acceptance of the target company’s power generation technology. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.