Exhibit 99.1


Digital Recorders Inc. Announces New Frame Agreement With Volvo of Sweden

    DALLAS--(BUSINESS WIRE)--April 28, 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 its Mobitec AB (Mobitec) subsidiary in Sweden has
signed a new frame agreement with Volvo Bus Corporation (Volvo).
    As part of the new frame agreement, Mobitec will provide
electronic destination sign systems to Volvo worldwide. Valid for two
years, the agreement is renewable and is a continuation of the
relationship that Mobitec has held with Volvo for many years.
    "We are honored to have Volvo's continued and reaffirmed
confidence in Mobitec as its primary supplier of information systems
worldwide. We believe that this agreement and cooperation with Volvo
will lead to development of new markets for Mobitec and potentially
yield higher business volume. Mobitec management is to be commended
for demonstrating once again its ability to deliver high quality and
technologically competitive products at attractive prices with strong
customer service support. These attributes, which are expected by our
customers such as Volvo, are what we strive to consistently deliver,"
David L. Turney, the Company's Chairman, Chief Executive Officer and
President, said.
    Volvo, one of the largest bus vehicle and bus vehicle chassis
manufacturers in the European market, has operations worldwide.

    ABOUT MOBITEC

    Based in Goteborg, Sweden, Mobitec is highly respected for its
products, technology, service and quality. The premier supplier of
electronic destination sign systems in the Nordic markets, Mobitec
also has business units in Australia and Germany, as well as a joint
venture in Brazil.
    As part of senior management's plans to grow at an accelerated
pace through internal and external means, the Company completed its
acquisition of Mobitec in June 2001. The acquisition significantly
expanded the Company's geographical reach and cross-selling
opportunities.

    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
             veronicam@digrec.com