Exhibit 99.1
Press Release Dated June 8, 2006
Digital Recorders, Inc. Announces E Ink(R) Display Systems and Notes Further
Progress on Transit and Security Funding
DALLAS--(BUSINESS WIRE)--June 8, 2006--Digital Recorders, Inc.
(Nasdaq:TBUS):
-- New E Ink(R) Display Systems to be Demonstrated on Passenger Rail
Vehicles in 2006
-- U.S. House of Representatives Fully Funds FY2007 Transit Program at
Record Level and Adds $50 Million to Transit Security Funding in
Homeland Security Bill
-- Company Backlog of Orders and Revenue Trend Increasing
Digital Recorders, Inc. (DRI) (Nasdaq:TBUS), a technology leader in
transportation, law enforcement, and security digital communications systems,
announced today it has been working with Vossloh Information Technologies
Karlsfeld GmbH (Vossloh IT) of Germany to introduce new electronic ink (E
Ink(R)) display systems to the U.S. transit market, which will be marketed
through the Company's TwinVision na, Inc. (TVna) business unit in Research
Triangle Park, N.C.
"You may recall that we announced a strategic alliance relationship with
Vossloh IT back in May 2003. We have been working with Vossloh IT to bring E
Ink(R) display systems to the U.S. transit market. Our efforts have led to a
technologically advanced display product that will be demonstrated by DRI on
U.S. passenger rail vehicles for the first time later this year. At this stage,
we envision the applications to be more suited for our rail vehicle and interior
applications. However, as development continues, we do expect potential
applications to increase. We do not expect this new display technology to be
material to our 2006 revenue, but it could potentially open new opportunities in
2007 and beyond," David L. Turney, the Company's Chairman, Chief Executive
Officer, and President, said.
DRI Chief Technology Officer Lawrence A. Hagemann said, "The evolving
technology and features of the E Ink(R) display system in the fixed and mobile
passenger information systems confirms our enthusiasm for this new display
technology. It is ideally suited for transit demands of low power requirements,
high contrast readability in direct sunlight, and minimum overall life cycle
costs for both on-board vehicle use and wayside signage applications. Both
full-character and segmented displays are possible using these extremely thin,
light-weight, E Ink(R) display cells that consume minimal power. Vossloh IT
field trials on both wayside and rail vehicles in Europe are now taking place."
For more information about Vossloh IT and E Ink(R) display technology,
refer to http://www.vit.vossloh.de/fs_cms/en/index.html. For more information
about the Company's TVna business unit, go to www.twinvisionsigns.com.
E Ink(R) is a registered trademark of the E Ink Corporation in Cambridge,
Mass.
U.S. TRANSIT AND TRANSIT SECURITY FUNDING
According to the American Public Transportation Association (APTA), the
U.S. House of Representatives' (the House) Appropriations Subcommittee on
Transportation approved the draft fiscal year 2007 bill that funds Federal
Transit Administration programs on May 25, 2006. The approved draft sets a
record high of $8.975 billion with authorized and guaranteed funding provided by
SAFETEA-LU (P.L. 109-59) for the federal government's fiscal year 2007 - a 5.5
percent increase over the final amount appropriated for fiscal year 2006.
According to APTA, the House also began consideration of the fiscal year
2007 Homeland Security Appropriations bill (H.R. 5441) on May 25, 2006. During
consideration of that bill on the House floor, the House agreed to an amendment
that increased funding for transit and passenger rail grants by $50 million,
increasing the total funding in the bill for these programs to $200 million. The
original version of the bill, as reported out of the House Appropriations
Committee, contained only $150 million for transit and passenger rail security
grants - the same amount provided in fiscal year 2005 and 2006 Homeland Security
Appropriations laws (P.L. 108-334 and P.L. 109-90).
Although the House did not complete consideration of the fiscal year 2007
bill prior to its week-long Memorial Day recess, APTA anticipates it will do so
when it reconvenes. In the Senate, the Appropriations Committee has not yet
scheduled its subcommittee markup of the fiscal year 2007 Homeland Security
bill.
Mr. Turney said, "We are very excited to see the House's record-high
funding increases for transit and the increased transit security funding during
fiscal year 2007. These increases, if sustained through the full process, could
positively impact orders for new bus builds and retrofit projects as we enter
2007. Additionally, the increased funding may ultimately lead to more orders for
security-related equipment - including the high quality, affordable products
designed and manufactured by DRI's business units and division in North
Carolina. Our backlog of orders is growing and our revenue is already on an
increasing trend, progress that should continue as the positive U.S. federal
funding trends continue."
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 about our ongoing relationship with Vossloh IT, the expected demand
for E Ink(R) display systems, the anticipated outcome of field trials on both
wayside and rail vehicles currently being conducted in Europe, and the
anticipated demonstration introduction of the product in the U.S., the expected
outcome of U.S. transit and transit security funding for fiscal year 2007, the
expected outcome of the Company's orders backlog and revenue trends, 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
pertaining to our ongoing relationship with Vossloh IT, the expected demand for
E Ink(R) display systems, the anticipated outcome of field trials on both
wayside and rail vehicles currently being conducted in Europe, the anticipated
demonstration introduction of the product in the U.S., the anticipated outcome
for U.S. transit and transit security funding for fiscal year 2007, the expected
outcome of the Company's orders backlog and revenue trends, 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