Exhibit 99.1


                       Digital Recorders, Inc. Notes U.S.
                           Transit Ridership Increase


    DALLAS--(BUSINESS WIRE)--Jan. 24, 2006--Digital Recorders, Inc.
(DRI) (Nasdaq:TBUS), a technology leader in transit, transportation,
law enforcement, and security digital communications systems,
announced today that, according to the American Public Transportation
Association (APTA), national transit ridership increased 3.3 percent
during third quarter 2005 over the same period in 2004.
    APTA attributes the high price of gas as the primary driver of the
national transit ridership increase. While previous national transit
ridership increases based upon gas prices have proven to be temporary,
preliminary numbers indicate that this increase is holding even as gas
prices have fallen from recent highs.
    "Recent APTA survey results indicate that the sticker shock
experienced at U.S. gas pumps during the third quarter 2005 appears to
have boosted all modes of public transit ridership - and the increase
seems to be sticking. The survey's results also appear to validate
America's strategy of investing in public transit's future through the
$286.4 billion transportation bill, The Safe, Accountable, Flexible,
Efficient Transportation Equity Act - A Legacy for Users (SAFETEA-LU),
which provided about a 46 percent increase in funding to the transit
market over the previous, comparable six-year legislation," David L.
Turney, the Company's Chairman, Chief Executive Officer, and
President, said.
    Mr. Turney, who serves on APTA's Executive Committee, said: "With
increased transit ridership comes an increased demand for all modes of
public transportation and related equipment. And, of course, DRI is a
leading supplier of transit communications equipment such as our
TwinVision(R) and Mobitec(R) electronic destination sign systems,
Talking Bus(R) voice announcement systems, Digital Recorders(R)
Internet-based passenger information systems and automatic vehicle
location and monitoring systems, and VacTell(TM) video actionable
intelligence systems. Continued increases in national transit
ridership should help DRI to achieve further growth."
    In a recent press release, APTA President William W. Millar said:
"The increased ridership results of the third quarter, combined with
the November ridership increases, indicate that more and more
Americans want other options besides the automobile. Transit ridership
was on the move in 2005, and I fully expect that it will continue to
grow as more people discover the convenience and affordability of
public transportation."

    APTA RIDERSHIP SURVEY

    APTA recently conducted a survey of 85 large and small U.S.
transit agencies regarding November 2005 ridership figures to see if
ridership trends had continued, even as gas prices declined. This
survey indicated 88 percent of the agencies reported transit ridership
continued at higher rates than a year earlier, despite the fact that
gas prices went down in November. In some places, transit systems
reported increases in double digits. APTA said the third quarter 2005
report shows that all types of public transportation showed increases,
with light rail showing the largest increase at 8.8 percent.

    ABOUT APTA

    APTA is a non-profit international association of 1,600 member
organizations, including public transportation systems; planning,
design, construction and finance firms; product and service providers;
academic institutions; and state associations and departments of
transportation. APTA members serve the public interest by providing
safe, efficient and economical public transportation services and
products. APTA members serve more than 90 percent of persons using
public transportation in the United States and Canada.

    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 APTA and its survey results, the
potential outcome of SAFETEA-LU on our industry sector, the Company's
products and services, the future state of our industry sector as a
whole, our future assessment of current trends and indicators,
statements made by APTA President William W. Millar, 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 the APTA survey results, the potential outcome of SAFETEA-LU on
the industry sector, the risk that we may incorrectly interpret
current trends and indicators, statements made by APTA President
William W. Millar, 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: Veronica B. Marks
             Manager, Corporate Communications
             Digital Recorders, Inc.
             Phone: 214-378-4776
             Fax: 214-378-8437
             E-Mail: veronicam@digrec.com
             or
             Investor Relations Contact
             Brien Gately
             Senior Vice President
             The Investor Relations Company
             Phone: 800-536-8472
             Fax: 847-296-4460
             E-Mail: bgately@tirc.com