Exhibit 99.1

Digital Recorders, Inc. Announces Preliminary First Quarter 2004
Revenue Estimates

    DALLAS--(BUSINESS WIRE)--April 19, 2004--Digital Recorders, Inc.
(Nasdaq:TBUS):

    --  Revenue Up Approximately 11 Percent

    --  Management Preliminarily Expects to Report a Profit

    Digital Recorders, Inc. (DRI) (Nasdaq:TBUS), a market leader in
transit, transportation, and law enforcement digital communications
and audio enhancement systems, announced today that first quarter 2004
sales were approximately $12.1 million, or an increase of about 11
percent over same-period results a year ago.
    "Overall, both consolidated domestic and consolidated
international operations preliminarily are showing an increase in
revenue for first quarter 2004. Additionally, we preliminarily expect
to report a profit on this revenue level. For the same quarter last
year, we reported revenue of $10.9 million and a loss of $211,466,"
David L. Turney, the Company's Chairman, Chief Executive Officer, and
President, said.

    Long-Term Outlook

    "Our outlook for the next 12 months to 18 months indicates
top-line growth into the $55 million to $60 million annualized revenue
range without including any possible significant corporate
acquisitions. On that revenue range, we would expect to report a
profit for fiscal year 2004 before considering any non-cash financing
charges should any materialize related to further financing activities
of the Company. Supporting that outlook is an array of new products
and new served markets, most of which we launched in fiscal year 2003,
and that are now part of our on-going business. Through several
specific actions, the Company now has achieved period-over-period
product and operating expense reductions that could potentially result
in approximately $1.4 million of annualized cost savings in fiscal
year 2004," Mr. Turney said.

    Annual Meeting of Shareholders Reminder

    The Annual Meeting of Shareholders will be held Wednesday, May 26,
2004, at 10 a.m. (Eastern) at the Radisson Governor's Inn located at
Interstate 40 at Davis Drive (Exit 280) in Research Triangle Park,
N.C. Shareholders of record at the close of business on Thursday,
April 8, 2004, are entitled to receive notice of, and to vote at, the
Annual Meeting and any adjournment thereof.

    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