Exhibit 99.1

   Digital Recorders, Inc. Slates New Transit Security Product Demonstrations


    DALLAS--(BUSINESS WIRE)--Sept. 21, 2005--Digital Recorders, Inc.
(DRI) (Nasdaq:TBUS)

    --  Demonstrations to Take Place During APTA Expo 2005, Sept.
        26-28, in Dallas

    --  CEO Says Digital Recorders(R) VacTell(TM) Video Actionable
        Intelligence May be a New Way of Dealing With Transit Vehicle
        Security Threats

    Digital Recorders, Inc. (DRI) (Nasdaq:TBUS), a technology leader
in transportation, law enforcement, and security digital
communications systems, announced today that it plans to conduct
multiple demonstrations of its new transit security-related technology
and concept, Digital Recorders(R) VacTell(TM) Video Actionable
Intelligence, during the American Public Transportation Association
International Public Transportation Expo (APTA Expo 2005), Sept.
26-28, 2005, at the Dallas Convention Center.
    "VacTell(TM) raises the focus on transit security to a new level
by making security event information more immediately actionable. The
days of only passively recording video information are gone. We must
think differently and position ourselves to respond in real time. This
is what VacTell(TM) is all about. It is a product, a technology
application, and a concept that we believe may make a real difference.
VacTell(TM) combines our well established Digital Recorders(R) on -
and off-vehicle location and monitoring products with advanced digital
video recording and telecommunications technologies to deliver the
ability to manage security events on a real-time basis. It acts
intelligently to recognize, alert, and effectively manage security
events. We are thinking outside the box, and we believe doing so is
necessary if we are to make any meaningful progress toward the
mitigation of security threats. While we may never be able to
eliminate such threats, we can make a difference in discouraging them
and, thus, mitigate the potential for damage and loss of life. During
APTA Expo 2005, we will conduct several live VacTell(TM)
demonstrations," David L. Turney, the Company's Chairman, Chief
Executive Officer, and President, said.

    VACTELL(TM) DEMONSTRATION SCHEDULE

    --  Monday, Sept. 26, 2005: On the hour from 11 a.m. to 5 p.m.

    --  Tuesday, Sept. 27, 2005: On the hour from 9 a.m. to 5 p.m.

    --  Wednesday, Sept. 28, 2005: On the hour from 9 a.m. to 2 p.m.

    OTHER INFORMATION

    DRI's APTA Expo 2005 exhibit booth number is 3515. For more
information about this transit industry event, refer to
www.apta.com/expo2005.

    ABOUT THE COMPANY

    Digital Recorders, Inc. is a technology leader in transportation,
law enforcement, and security digital communications systems using
proprietary hardware and 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 transportation communications products
- -- TwinVision(R) and Mobitec(R) electronic destination sign 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 noise cancellation equipment,
help law-enforcement agencies around the globe 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, statements concerning the timing of future product
demonstrations; future product and service offerings; the ability to
include additional security features to existing products and
services; the potential benefits such security features may have for
our customers; the potential positive effect such product and service
offering may have on future revenues; the expected contribution of
sales of new and modified security related products to our
profitability as well as 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
risks and uncertainties that the assumptions behind future product and
service offerings may not prove accurate; risks that future product
and service offerings may not be accepted by our customers; risks that
we may be unable to create meaningful security product features in
either new or existing products; as well as other risks and
uncertainties set forth in our Annual Report on 10-K filed April 1,
2005, particularly those identified in Risk Factors Affecting Our
Business. 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.


    CONTACT: Digital Recorders, Inc., Dallas
             Veronica B. Marks, 214-378-4776
             Fax: 214-378-8437
             E-Mail: veronicam@digrec.com
             or
             Investor Relations Contact:
             The Investor Relations Company
             Brien Gately, 800-536-8472
             Fax: 847-296-4460
             E-Mail: bgately@tirc.com