Exhibit 99.1

   Digital Recorders, Inc. to Present at the Roth Capital Partners
         16th Annual Growth Stock Conference in New York City

    DALLAS--(BUSINESS WIRE)--Sept. 9, 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 David L. Turney, the Company's Chairman, Chief
Executive Officer, and President, will present the DRI story to
interested investors at the Roth Capital Partners' 16th Annual Growth
Stock Conference in New York City on Monday, Sept. 13, 2004, at 11:30
a.m. (Eastern).
    Mr. Turney's presentation includes commentary regarding the
Company's served markets, its opportunities, its products and
services, and its outlook for the next 12 months to 15 months.

    About the Roth Capital Partners 16th Annual Growth Stock
Conference

    This annual event is the largest in the nation for emerging growth
companies. It provides a concentrated forum where Institutional
Investors can meet the executives of growth companies hand picked by
Roth Capital's research team. The conference will highlight
approximately 225 companies from industry groups including: Health
Care/Life Sciences; Consumer Products; Defense & Industrial
Technologies; Digital Media, IT & Entertainment; Broadband & Fiber
Optics; Gaming; and Business and Banking/Financial Services.
    This year, as a result of numerous client requests, Roth Capital
Partners has extended the conference to three working days, including
a Discovery Day, which will be hosted by RedChip Resources, LLC. For
more information about the conference, visit:
http://www.rothcp.com/Conf%20NY%20Web%20Site/Roth.htm?content=home.

    About the Company

    Digital Recorders, Inc. is a market leader in transit,
transportation and law enforcement/security digital communications and
audio enhancement systems using proprietary software applications. Our
products improve the flow and mobility of people through
transportation infrastructure, mitigate security threats, and 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 locating and monitoring systems --
enhance public transportation and mitigate security threats worldwide.
Our electronic surveillance tools, including microphone amplifiers and
processors, countermeasures devices, speech activity detectors, and
radio/television noise cancellers, help law-enforcement agencies
around the globe detect, 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. It is important to note the
Company's actual results could differ materially from those
contemplated in the Company's forward-looking statements as a result
of various factors. Among other factors, the Company's results will be
affected, perhaps materially, by general economic conditions, the
availability of national government assistance and funding to local
transportation authorities, the adoption and implementation of
regulations concerning public transportation services, product demand
and market acceptance risks, the effect of import, licensing and trade
restrictions, the results of implementing the Company's business plan,
the impact on the Company of its relationship with its lenders, the
plans and prospects of competitors, the impact of competitive products
and pricing, currency fluctuations, infringement by third parties of
the Company's trade secrets and other intellectual property, the
burdens and costs of defending against potential infringement claims
against the Company, and our ability to attract and retain personnel.
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 risks associated with the
Company's business.

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