Richt, who did not say why Matthews has been dismissed, didn't mention the player's status while speaking with reporters earlier Tuesday but made the announcement in a statement several hours later.
The coach says, ''We are trying to make room for guys who want to do things right.''
Matthews and three former Georgia teammates are scheduled to be arraigned in Athens-Clarke County court Thursday after being charged three months ago with illegally cashing scholarship checks.
Matthews, who started six of the eight games he played as a freshman, had 23 solo tackles. He missed five games with a hamstring injury.