Exhibit 99.1

    Digital Recorders, Inc. Announces Order for Swedish Subsidiary
                              Mobitec AB;
               Order From Volvo Valued at $665,000 USD;
                    CEO Comments on FY2005 Outlook

    DALLAS--(BUSINESS WIRE)--Dec. 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 Mobitec AB (Mobitec) subsidiary in
Herrljunga, Sweden, has received an order from Volvo Bus Corporation
(Volvo) for more than 190 Mobitec(R) electronic destination sign
systems.
    "We believe this order demonstrates Volvo's continued confidence
in Mobitec as a primary supplier of electronic destination sign
systems worldwide. This order, which is valued at approximately
$665,000 USD, will be delivered to Volvo on behalf of Stockholm
Transport and its Stockholm-region traffic operators -- Buslink,
Connex and Swebus -- between December 2004 and June 2005. Mobitec
management and staff are to be commended for further demonstrating
their ability to deliver high quality, technologically competitive
products at attractive prices and with strong customer service
support. Our customers expect this level of service and we strive to
consistently deliver," David L. Turney, the Company's Chairman, Chief
Executive Officer, and President, said.
    Volvo is one of the largest bus manufacturers in the European
market and has automotive operations worldwide. The buses involved in
this order will be built in Saffle, Sweden.
    In April 2004, DRI announced it had entered into a new frame
agreement with Volvo through which its Mobitec subsidiary will provide
electronic destination sign systems to Volvo worldwide. Valid for two
years, the agreement is renewable and is a continuation of the
relationship Mobitec has held with Volvo for many years.
    Based in Herrljunga, Sweden, Mobitec was acquired by DRI in June
2001. Its acquisition significantly expanded DRI's geographical reach.
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, and a joint venture in Brazil.

    FY2005 Outlook

    "We see the transit industry and the markets we serve stabilizing
and improving in fiscal year 2005. In the U.S., federal legislative
actions have improved the domestic transit industry's outlook,
although the timing of the reauthorization of the Transportation
Equity Act for the 21st Century (TEA-21) remains uncertain," Mr.
Turney said. "Within the Company, we are continuing to develop and
introduce new products in virtually all business units. This includes
placing additional emphasis on security-related products and services,
areas in which we also are pursuing product development and strategic
alliances. I am excited about the market's prospects in fiscal year
2005."

    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(R) 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.
             Veronica B. Marks, 214-378-4776
             Fax: 214-378-8437
             veronicam@digrec.com
             or
             IR Counsel Contact:
             Citigate Financial Intelligence
             Robin Weinberg, 201-499-3500
             Fax: 201-499-3600
             Robin.Weinberg@citigatefi.com