Exhibit 99.1

   Digital Recorders, Inc. Announces Annual Meeting of Shareholders

    DALLAS--(BUSINESS WIRE)--April 24, 2006--Digital Recorders, Inc.
(DRI) (NASDAQ:TBUS), a technology leader in transportation, law
enforcement, and security digital communications systems, announced
today that its Annual Meeting of Shareholders will take place
Wednesday, May 24, 2006, at the Hilton Raleigh-Durham Airport at
Research Triangle Park, located at 4810 Old Page Road in Research
Triangle Park, N.C.
    Registration for the Annual Meeting, as well as a complimentary
continental breakfast for attendees, will begin at 9:30 a.m.
(Eastern). The business meeting will begin at 10 a.m. (Eastern).
    Shareholders of record at the close of business on Tuesday, April
4, 2006, are entitled to receive notice of, and to vote at, the Annual
Meeting and any adjournment thereof. Earlier today, Annual Meeting
materials were mailed to shareholders of record.
    As earlier indicated in the Company's Form 10-K filed Monday,
April 17, 2006, the opinion of the Company's independent, registered
public accounting firm included a going-concern qualification. The
Form 10-K is available via the Company's Web site, www.digrec.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, 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 may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
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," "will," "goal," "potential," "potentially,"
"range," "pursuit," "run rate," "stronger," "preliminarily," etc., is
intended to identify forward-looking statements that are subject to
risks and uncertainties may not prove accurate over time as well as
other risks and uncertainties set forth in our Annual Report on 10-K
filed April 17, 2006, 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