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                                                                     EXHIBIT 2.3

FOR IMMEDIATE RELEASE
CONTACT:
DIGITAL RECORDERS, INC.
DAVID L. TURNEY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER
(919) 361-2155, EXT. 120
EMAIL: DAVET@DIGREC.COM


                          Robinson-Turney International
                       Merged Into Digital Recorders, Inc.

           CEO DAVID L. TURNEY AGREES TO FOUR-YEAR EMPLOYMENT CONTRACT

RESEARCH TRIANGLE PARK, N.C. - (July 2, 1998) Digital Recorders, Inc.
(NASDAQ-Small Cap: TBUS), a high-technology microelectronics company and
developer of digital communications systems, today announced that a letter of
intent has been signed to acquire Robinson Turney International (RTI), a
business marketing and technology firm. In a separate announcement, David L.
Turney, a co-founder of RTI, accepted a four-year employment contract as CEO of
Digital Recorders, Inc.

RTI, a Dallas-based firm, is an international business and market development
firm engaged in technology development, mergers, acquisitions, business
development, marketing and other services for transit and transportation
equipment manufacturers, operators and suppliers. RTI has business interests in
both the United States and Europe; Digital Recorders is an RTI client. RTI is
owned by David L. Turney and Claude G. Robinson, a Grand Rapids-area transit
industry professional.



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The acquisition, expected to be completed by the end of July, will be
accomplished as a pooling of interests under which RTI shareholders will receive
200,000 shares of Digital Recorders common stock. DRI management expects the
transaction to be accretive.

Separately, DRI announced that Chairman and Chief Executive Officer David L.
Turney has entered into a four-year employment agreement. With more than 14
years experience in the core transit and transportation markets served by
Digital Recorders, Turney served as group executive of the Transportation
Products Group for Mark IV Industries Inc., a Fortune 500 company listed on the
New York Stock Exchange. At Mark IV Industries (NYSE: IV), Mr. Turney founded
the Transportation Products Group and guided it to more than $150 million in
sales.

Turney has been a DRI director since May 1996 and, through RTI, is responsible
for Digital Recorders' acquisition of Transit-Media GmbH and the start-up of
TwinVision, Inc., the first LED illuminated electronic flip-dot destination sign
in European and American markets.

Concerning the RTI merger, Turney said: "This merger will allow RTI to work more
closely with the Digital Recorders organization both on internal growth of the
existing business as well as through acquisitions."




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Headquartered in Research Triangle Park, NC, Digital Recorders is ranked in the
"Technology Fast 500" by Deloitte and Touche LLP from a base of all United
States technology companies including private and life science companies. The
company is a market leader in transit, transportation and law enforcement
digital communications systems using proprietary software applications.

Digital Recorders develops technologically advanced digital communications
systems for transit, transportation and law enforcement applications. The
company's transit and transportation systems include the TALKING BUS(R), an
on-vehicle voice messaging and passenger information system and the
TwinVision(R) LeDot Destination Sign System - a proprietary, electronic external
destination sign. In addition, the company's Digital Audio Company subsidiary is
a leading supplier of proprietary Digital Signal Processing systems for voice
enhancements to law enforcement agencies worldwide. Customers include transit
agencies and bus manufacturers; municipalities; federal, state and local
departments of transportation and law enforcement agencies.

                                      -end-