EXHIBIT 99.1

    Digital Recorders, Inc. Announces Filing of Partial Form 10-K;
 Portions of Form 10-K to be Filed by Amendment Following Short Delay

    DALLAS--(BUSINESS WIRE)--March 30, 2004--Digital Recorders, Inc.
(DRI) (Nasdaq:TBUS), a market leader in transit, transportation and
law enforcement digital communications and audio enhancement systems,
announced today that it has filed its Form 10-K for the fiscal year
ended Dec. 31, 2003, excluding its audited financial statements and
other related information. The Company also has filed a Form 12b-25
with the Securities and Exchange Commission, requesting a 15-day
extension of the March 30, 2004 deadline for filing the remaining
portions of its Form 10-K.
    "The Company is in the process of finalizing a reformation of the
terms and conditions of a recently completed equity financing
transaction. The revisions that will be made to the terms of the
equity security and related documents create certain complex
accounting questions that have not yet been resolved, and the
resolution of those questions will have a material effect on the
Company's financial statements for the fiscal year ended Dec. 31,
2003, and related disclosures in the Form 10-K. The Company currently
is evaluating those questions and consulting with its independent
auditors, concurrently with its negotiation of the final terms of the
reformation documents. Management's concentration on this complex
matter has further affected the timely completion of certain other
aspects of the Form 10-K. As a result, financial statements and
disclosures have not been finalized. Primarily due to these reasons
taken together, the Company's independent auditors have been unable to
complete their audit and issue their auditor's report related to those
financial statements. Management anticipates that the Company will
file an amendment to its Form 10-K on or before April 14, 2004, to
include the portions of the Form 10-K that are not filed by the
prescribed due date," David L. Turney, Chairman, CEO and President
said.
    The Company anticipates that it will execute final documentation
relating to the reformation of the terms and conditions of the equity
financing in the next several business days. It will issue another
news release at that time.

    About the Company

    Digital Recorders, Inc. is a market leader in transit,
transportation and law enforcement digital communications and audio
enhancement systems using proprietary software applications. Our
products improve the flow and mobility of people through
transportation infrastructure, as well as enhance law enforcement
agencies' surveillance capabilities. Our transit communications
products -- TwinVision(R) and Mobitec route destination signage
systems, Talking Bus(R) voice announcement systems, and
Internet-based, automatic vehicle monitoring systems -- enhance public
transportation around the globe. Our electronic surveillance tools,
including microphone amplifiers and processors, countermeasures
devices, speech activity detectors, and radio/television noise
cancellers, help law-enforcement agencies worldwide capture, arrest
and prosecute criminals. For more information about DRI and its
operations worldwide, go to www.digrec.com.

    Forward-Looking Statements

    This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
In particular, any statement, express or implied, concerning future
events or expectations is a forward looking statement. Use of words
such as "expect," "fully expect," "expected," "appears," "believe,"
"plan," "anticipate," "would," "goal," "potential," "potentially,"
"range," "pursuit," "run rate," "stronger," "preliminarily," etc., is
intended to identify forward-looking statements that are subject to
risks and uncertainties, including those described below. There can be
no assurance that any expectation, express or implied, in a
forward-looking statement will prove correct or that the contemplated
event or result will occur as anticipated. The risks associated with
forward-looking statements include, but are not limited to, product
demand and market acceptance risks, the impact of competitive products
and pricing, the effects of economic conditions and trade, legal,
social and economic risks, such as import, licensing and trade
restrictions, the results of implementing the Company's business plan,
and the impact on the Company of its relationships with its lenders
and creditors. Refer to the Company's various Securities and Exchange
Commission filings, such as its Forms 10-Q and 10-K, for further
information about forward-looking statements and the risks associated
with our business.

    CONTACT: Digital Recorders, Inc., Dallas
             Veronica B. Marks, 214-378-4776
             Fax: 214-378-8437
             veronicam@digrec.com