June 2, 2005


VIA EDGAR

Mr. Larry Spirgel
Assistant Director
Securities and Exchange Commission
Division of Corporate Finance
Mail Stop 0407
450 Fifth Street, N.W.
Washington, D.C. 20549

     Re:  Digital Recorders, Inc.
          Annual Report on Form 10-K for the year ended December 31, 2004
          Filed April 1, 2005
          File No. 033-82870-A

Dear Mr. Spirgel:

     Digital Recorders, Inc. (the "Company") has received your
letter dated May 24, 2005, concerning the Company's Annual Report
on Form 10-K for the year ended December 31, 2004 and filed April
1, 2005.  We note you requested the Company respond to your
comments within ten (10) business days or tell you when the
Company would respond.

     The Audit Committee of the Company's Board of Directors is
currently considering your comments and evaluating various
alternatives in formulating an appropriate response.  As a
result, the Company is requesting additional time for its Audit
Committee to fully consider the matter and formulate its
response.  The Company believes that it will be in a position to
deliver a letter responding to your comments, together with any
supplemental material the Company wishes you to consider, on or
before Monday, June 20, 2005.

     If you have any questions or require additional information
regarding this request for additional time to respond, please
contact me at (214) 265-1202 or by facsimile at (214) 378-8437.

Sincerely,

/s/  DAVID N. PILOTTE

David N. Pilotte
Chief Financial Officer
Digital Recorders, Inc.