Exhibit 99.1

Digital Recorders, Inc. Notes Positive Trend in U.S. Federal Transit Funding
Continues

    DALLAS--(BUSINESS WIRE)--March 13, 2006--Digital Recorders, Inc. (DRI)
(Nasdaq:TBUS), a technology leader in transit, transportation, law
enforcement, and security digital communications systems, announced
today that the positive trends in increased federal funding for U.S.
public transportation, as set into motion by The Safe, Accountable,
Flexible, Efficient Transportation Equity Act - A Legacy for Users
(SAFETEA-LU), are gaining additional momentum as a result of the $8.87
billion federal transit program funding level recommended in the Bush
administration's fiscal year 2007 budget.
    "According to the American Public Transportation Association, the
Bush administration's funding proposal represents an increase of
$370.3 million, or 4.4 percent over the fiscal year 2006 final
appropriation level. Under the Bush administration's fiscal year 2007
budget proposal for the Department of Homeland Security, funding for a
Targeted Infrastructure Protection program would be set at $600
million. The impact from these positive trends is beginning to be felt
in the industry as selected manufacturers are increasing production
rates in order to meet an acceleration of orders in the latter half of
the year. These funding proposals bode well for DRI's long-term
strategic plans and the investments we've made in the past few
difficult years," David L. Turney, the Company's Chairman, Chief
Executive Officer, and President, said.

    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, Digital Recorders(R)
Internet-based passenger information and automatic vehicle
location/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 potential outcome of
SAFETEA-LU, the Company's belief the positive trends are being driven
by increased funding levels, the realization of the funding levels
proposed by the Bush administration in its fiscal year 2007 budget,
any stated or implied magnitude or sustainability of the positive
trends, the impact the positive trends may be expected to have on
DRI's mid- and long-term strategic plans, 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 are not correct, that the potential
outcome of SAFETEA-LU is not predictable, that the funding levels
proposed by the Bush administration in its fiscal year 2007 budget
will not be reflected in the final budget, the risk that we may
incorrectly interpret current trends and indicators or drivers
thereof, as well as other risks and uncertainties set forth in our
public filings with the Securities and Exchange Commission, especially
our Annual Report on 10-K filed April 1, 2005, and 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