Exhibit 99.1

Digital Recorders, Inc. Retains Citigate Financial Intelligence to Help Expand
Investor Relations Efforts

     DALLAS--(BUSINESS WIRE)--Oct. 8, 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 it
has retained Citigate Financial Intelligence of Hoboken, N.J., as its investor
relations firm.
     "We are confident Citigate Financial Intelligence will help us in our
ongoing efforts to enhance global awareness about DRI and our products, as well
as to fully inform investors about important developments in our business,"
David L. Turney, the Company's Chairman, Chief Executive Officer, and President,
said.

     About Citigate Financial Intelligence

     Citigate Financial Intelligence, an Incepta Group company, is a global
investor relations consulting, market intelligence, and technology firm. It
provides a comprehensive offering of: strategic IR counsel and tactical support;
market intelligence, including stockwatch, shareholder and bondholder
identification; analytical services, including shareholder base analysis and
targeting; and online contact management technology to corporate investor
relations professionals, investment banks, and other third-party intermediaries.
For more information, visit www.citigatefi.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