Exhibit 99.1

Digital Recorders, Inc. to Present at the Wall Street Analyst Forum's
              16th Annual Analyst Conference in New York

    DALLAS--(BUSINESS WIRE)--Feb. 25, 2005--Digital Recorders, Inc.
(Nasdaq:TBUS):

    --  Conference Slated Feb. 28, 2005, to March 2, 2005

    --  CEO's Presentation Scheduled Monday, Feb. 28, at 2 p.m.
        (Eastern)

    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 analysts and portfolio managers on
Monday, Feb. 28, 2005, at 2 p.m. (Eastern) at the Wall Street Analyst
Forum's 16th Annual Analyst Conference at The Roosevelt Hotel in New
York City.
    Mr. Turney's presentation will include commentary regarding the
Company's served markets, its opportunities, its products and
services, and its financial history. His presentation will be webcast
live via http://www.vcall.com/CEPage.asp?ID=90667 and archived for 12
months.

    About the Conference

    The Wall Street Analyst Forum has been sponsoring analyst
conferences in New York, Boston, and London since 1989, involving
2,500 different presenting NYSE/NASDAQ/AMEX corporations and
attendance of more than 15,000 different analyst/portfolio managers.
For more information, visit www.analyst-conference.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(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 may contain "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
             or
             Investor Relations Contact:
             Citigate Sard Verbinnen
             Robin Weinberg, 212-687-8080
             Fax: 212-687-8344
             rweinberg@sardverb.com