Exhibit 99.1

    Digital Recorders, Inc. Announces New Single Lens RGB Color LED Product;
  Initial Orders Received for 107 Bus Vehicles in California and Massachusetts


    DALLAS--(BUSINESS WIRE)--May 17, 2006--Digital Recorders, Inc.
(DRI) (Nasdaq:TBUS), a technology leader in transportation, law
enforcement, and security digital communications systems, announced
today that its TwinVision na, Inc. (TVna) business unit in Research
Triangle Park, N.C., has received orders from existing customers in
California and new customers in Massachusetts for its technologically
advanced, single lens, light-emitting diode (LED) color display
destination sign system that utilizes a new red, green, and blue (RGB)
construction arrangement.
    The TVna business unit has a transit-industry exclusive on the new
single lens RGB color LED device for use in its TwinVision(R)
electronic destination sign systems (EDSS). Management anticipates the
Company will complete order shipments for a total of 107 bus vehicles
in two states during second quarter 2006.
    "We believe this new generation of color EDSS products featuring
our state-of-the-art single lens RGB color LED may help us capture
additional market share due to the features and economy that it
offers. While this product has been under development and in early
stage demonstration for quite some time, for competitive reasons we
have been cautious about calling wide-spread attention to it until we
were well along in the market introductory phase. We have on-going
product and technology developments, some of which we discuss in
advance and some of which we elect to keep low key like this until we
are properly positioned in a competitive context," David L. Turney,
the Company's Chairman, Chief Executive Officer, and President, said.
    DRI Chief Technology Officer Lawrence A. Hagemann said, "The
single lens RGB color LED was developed for our exclusive use in the
transit market. Its RGB construction arrangement generates a wide
array of the color spectrum with very wide-angle viewing, high
brightness, energy efficiency, and constant viewing intensity as
mandated by transit requirements. While RGB in many forms of
illumination and display devices is quite common, this particular very
rugged single lens RGB color LED was optimized for demanding transit
applications and it is not just an off-the-shelf item that would
commonly be found in the LED trade."

    ABOUT THE TWINVISION NA, INC. BUSINESS UNIT

    Established in 1996, TwinVision na, Inc. designs, manufactures,
sells, and services TwinVision(R) electronic destination sign systems
used on public transit vehicles. For more information about the
Company's TVna business unit, go to www.twinvisionsigns.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 contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
In particular, statements concerning the development and demonstration
of the new TwinVision(R) single lens RGB color LED product, the timing
and amount of the new order, the expected delivery date, the Company's
products and services, 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 acceptance and impact on market share of the new
TwinVision(R) single lens RGB color LED product, the new product
order's expected results, 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