UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

         Date of Report (Date of Earliest Event Reported): May 26, 2004

                                -----------------

                             Digital Recorders, Inc.

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             (Exact Name of Registrant as Specified in Its Charter)


            North Carolina                 1-13408               56-1362926
   (State or Other Jurisdiction of   (Commission File Number)  (IRS Employer
            Incorporation)                                  Identification No.)

                5949 Sherry Lane, Suite 1050, Dallas, Texas 75225
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's Telephone Number, Including Area Code (214) 378-8992









Item 9.  Regulation FD Disclosure

On May 26, 2004,  Digital  Recorders,  Inc. (the "Company")  announced in a
press release that Accounting  Supervisor B. Ranell  Bridges,  CPA, was named by
the Board of Directors' Human Resources and Compensation Committee and the Board
of Directors as the DRI  Teamsmanship  Award  recipient  for fiscal year 2003. A
copy of the Company's  press  release is attached  hereto as Exhibit 99.1 and is
incorporated  herein by  reference.  This Form 8-K and the attached  exhibit are
furnished to, but not filed with, the Securities and Exchange Commission.






Signature(s)

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                            DIGITAL RECORDERS, INC.

Date: May 26, 2004          By:  /s/ DAVID L. TURNEY
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                                 David L. Turney
                                 Chairman, Chief Executive Officer and President