Exhibit 99.1

   Digital Recorders, Inc. Encouraged by Recent Federal Legislative
                 Efforts On Reauthorization of TEA-21

    DALLAS--(BUSINESS WIRE)--March 15, 2005--

  CEO Announces Plans to Launch Additional Security-Related Products
              and Services in Next 12 Months to 18 Months

    Digital Recorders, Inc. (DRI) (Nasdaq:TBUS), a market leader in
transit, transportation, and law enforcement digital communications
and audio enhancement systems, announced today that the Company is
encouraged by the U.S. House of Representatives' measure to renew the
Transportation Equity Act for the 21st Century (TEA-21) with the
Transportation Equity Act: A Legacy for Users (TEA LU, H.R. 3).
    The House Transportation and Infrastructure Committee has marked
up a bill to authorize $283.9 billion in funding for transit and
highway programs over six years through the U.S. government's fiscal
year 2009. This includes a significant increase to $52.3 billion in
guaranteed funding for public transportation.
    "We believe this new legislation, if enacted, may substantially
stabilize the transit industry by helping to remove doubts about
long-term funding. Those doubts, in our judgment, have caused slowness
in our markets and the greater U.S. transit industry in 2004 and
2005," David L. Turney, the Company's Chairman, Chief Executive
Officer, and President, said.
    The proposals for the U.S. government's fiscal year 2006 budget
would provide funding for targeted infrastructure protection and
security-oriented initiatives within the U.S. Department of Homeland
Security. Mr. Turney said these actions could potentially add up to
$600 million in funding available for infrastructure protection
initiatives, including transit and rail security. "However, we must
caution that this legislation is not complete and it could possibly
fail or stall. Further, even if it is passed this spring, it would not
have a significant impact on DRI's fiscal year 2005 revenue. We also
could experience some additional market weakness in the last half of
2005 before this new legislation becomes effective. Suffice it to say,
the removal of some market uncertainties and the increased funding may
be positive developments for DRI's revenue outlook in fiscal year 2006
and beyond."

    Outlook

    "In the next 12 months to 18 months, we expect to launch several
additional security-related products and services for the transit
industry. We also plan to launch new products and new served markets
in both the U.S. and abroad. We believe these efforts may position the
Company to attain a $55 million to $60 million-plus annualized run
rate revenues over the next 18 months to 24 months. We also continue
to explore acquisition and strategic alliance opportunities to further
accelerate our long-term growth," Mr. Turney said.

    About the Company

    Digital Recorders, Inc. is a market leader in transit,
transportation, and law enforcement and 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

    Statements regarding the passage of federal legislation providing
funding to our market or the U.S. transit industry, the possible
effect such federal funding may have on our business and our long-term
outlook, the possible outcome of new security-related products and
services and their effect on our long-term outlook, as well as other
statements that are not historical facts, are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements rely on a number
of assumptions concerning future events and are subject to a number of
risks and uncertainties that could cause actual results and timing to
differ from those contained in the forward-looking statements. These
include, but are not limited to, uncertainties as to the occurrence
and timing of federal funding, the implementation of new
security-related initiatives, products, and services, and market
acceptance of such, and the attainment of annualized revenues. 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