Thank you for contacting us.
I confirm this is an issue with data binding process of RadDropDownList. I have added this issue to our Public Issue Tracker under ID 9736. To subscribe for its status updates please follow this link
This issue is with high priority in our TODO list and we will do our best to resolve it for the next Service Pack. Thank you for reporting it and please excuse us for the caused inconvenience. Your Telerik points have been updated.
the Telerik team
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