Exhibit 99.1

     Digital Recorders, Inc. Announces Preliminary Orders for New CARDINAL
                Next-Generation Forensic Audio Processor System

     DALLAS--(BUSINESS WIRE)--September 15, 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
Digital Audio Corporation (DAC) business unit in Research Triangle Park, N.C.,
has received three purchase orders for the CARDINAL next-generation forensic
audio processor system -- two from a U.S. federal agency and one from an
overseas law enforcement agency.
     "While the total dollar amount for these orders is small, the orders are
significant given this product is not scheduled for release until early 2005.
These preliminary purchases demonstrate the customers' confidence in DAC's
proven ability to provide technological innovations that meet both current and
future audio clarification needs of the law enforcement market," David L.
Turney, the Company's Chairman, Chief Executive Officer, and President, said.

     About CARDINAL

     CARDINAL takes forensic audio processing and analysis to the next
technological level. Fully integrating the capabilities of both hardware and
software, CARDINAL seamlessly handles the forensic analysis and processing of
all analog and digital media, including file-based recordings. CARDINAL
represents productivity enhancement through an integrated audio workstation
environment with fast performance, advanced visualization and filtering tools,
and interoperability with third-party software programs and plug-ins.

     About the DAC Business Unit

     Founded in 1979 and acquired by DRI in 1995, the DAC business unit is a
leading provider of forensic audio solutions for law enforcement, intelligence,
military, and security organizations in a number of countries across the globe.
DAC, which is based in Research Triangle Park, N.C., designs, develops,
manufactures and sells audio technologies to support audio collection,
enhancement, and countermeasures applications. For more information about DAC
products, go to www.dacaudio.com.

     About the Company

     Digital Recorders, Inc. is a market leader in transit, transportation and
law enforcement or 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, Internet-based
passenger information systems, and computer aided dispatch/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., Dallas
              Veronica B. Marks, 214-378-4776
              Fax: 214-378-8437
              veronicam@digrec.com