Exhibit 99.1

Digital Recorders, Inc. CEO Excited about Google's New Online Tool to Plot
Efficient Public Transportation Routes; CEO Says DRI Products Also Assist Public
Transit Authorities and Riders

     DALLAS--(BUSINESS WIRE)--Jan. 4, 2006--Digital Recorders, Inc. (DRI)
(Nasdaq:TBUS), a technology leader in transit, transportation, law enforcement,
and security digital communications systems, announced today that the recent
deployment of Google Inc.'s (Nasdaq:GOOG) Google Transit Trip Planner, which is
being beta tested with the Tri-County Metropolitan Transportation District of
Oregon (TriMet), is a significant, positive step in improving public transit
passenger services.
     "We believe the Google Transit Trip Planner is a step in the right
direction for the public transportation industry. Google, Inc. certainly should
be commended for this bold step. We also commend TriMet for taking part in the
beta test of this new online tool," David L. Turney, the Company's Chairman,
Chief Executive Officer, and President, said.
     Mr. Turney said the Google Transit Trip Planner is a notable development.
"First, it is stark recognition by a powerhouse information-age organization
that transit systems can and do play a vital role in mobility. Second, this type
of service has the potential to increase demand for transit services, which
could be a boost for almost all suppliers in the industry. Third, some of our
products and technical capabilities related to vehicle locating and monitoring,
designed and manufactured by our Digital Recorders (DR) division in Research
Triangle Park, N.C., possibly may indirectly feed into supporting this service."
     Examples of the DR division's products and technical capabilities related
to vehicle locating and monitoring include:

     --   The DR Automatic Vehicle Location (AVL) System keeps track of public
          transit vehicles' location and performance. Independent of
          communications systems, this system can operate through existing
          public telecom infrastructures or it can be interfaced to transit
          operators' private radio systems. The DR AVL System information can be
          easily shared with other applications such as passenger information
          systems.

     --   The On-Time Vehicle Information Access Passenger Information
          (OTvia(TM)) System expands the DR AVL System, and gives passengers
          information about vehicle location and arrival time. This
          Internet-based system enables transit operators to disseminate
          information to electronic signs at bus-stops, transit center kiosks,
          cell phones, personal computers, PDAs, and to any media with Internet
          access. The technology empowers passengers, and it enhances a transit
          system's ability to provide yet another greatly appreciated amenity
          for riders.

     --   The DR600(TM) Modular Vehicle Logic Unit exploits state-of-the-art
          technology to ensure fast, on-vehicle processing, and reliable
          communications, as well as vehicle locating and monitoring. The
          DR600(TM) can be used to implement various functions and to share data
          with other electronic systems such as fareboxes, automatic passenger
          counters, and security systems.

     ABOUT THE GOOGLE TRANSIT TRIP PLANNER

     As recently reported in the American Public Transportation Association's
Passenger Transport magazine, the Google Transit Trip Planner enables you to
enter the specifics of your trip -- where you're starting, where you're ending
up, what time of day you'd like to leave and/or arrive -- then uses all
available public transportation schedules and information to plot out the most
efficient possible step-by-step itinerary. The online tool also compares travel
costs by estimating the cost of driving based on the average mileage for the
shortest route between your starting and ending addresses multiplied by the cost
per mile (48.5 cents) allowed by the Internal Revenue Service as a business
deduction. However, cost estimates do not include things like tolls, parking
fees, or variations in gas mileage for different types of cars.
     A Google Labs product, Google Transit Trip Planner has not yet been
integrated with Google Local because Google, Inc. wants to further develop the
product by learning, through user feedback, how people really use public
transportation data and how the online tool can be improved. Currently offered
only in the Portland, Oregon metro area, Google Inc. has plans to expand Google
Transit Trip Planner to include other cities in the U.S. and around the world.
The online tool can be accessed by visiting http://www.google.com/transit.

     ABOUT THE DIGITAL RECORDERS DIVISION

     The Company's DR division develops and manufactures digital audio
communications products for the transit industry. Products include: computer
aided dispatch/automatic vehicle location systems; automatic vehicle monitoring
systems; Talking Bus(R) automatic voice announcement systems; and more. For more
information about the Company's DR division, go to www.talkingbus.com.

     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
location and monitoring systems, and VacTell(TM) video actionable intelligence
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 Google Transit Trip Planner, the Company's products
and services, the future state of our industry sector as a whole, our future
assessment of current trends and indicators, 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
expected results, the success of recent product and service introductions, the
risk that we may incorrectly analyze current trends and indicators, 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: Company Contact:
              Digital Recorders, Inc.
              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