Exhibit 99.1

         Digital Recorders, Inc. Announces $1.5 Million USD
              Electronic Destination Sign System Order

    DALLAS--(BUSINESS WIRE)--July 13, 2006--Digital Recorders, Inc.
(DRI) (Nasdaq:TBUS), a technology leader in transportation, law
enforcement, and security digital communications systems, announced
today that Swedish subsidiary Mobitec AB (Mobitec) has received an
order valued in excess of $1.5 million USD for Mobitec(R) electronic
destination sign systems that will be installed on new bus vehicles
being acquired by public transportation company DeLijn ("The Line") of
Belgium.
    DeLijn, an existing Mobitec customer, will take initial deliveries
of approximately one-third of the systems for bus vehicle
manufacturers VanHool and the VDL-Group of Belgium during fourth
quarter 2006. Delivery of the remaining systems will commence in 2007.
    "Our Mobitec team surpassed 12 competitors from across Europe in
the race for this order. Critical success factors included Mobitec's
technical capabilities and product compatibility with existing DeLijn
systems, international presence, relationships and references,
quality, and competitive prices. Mobitec is to be applauded for its
continued, significant market penetration through special
relationships such as this," David L. Turney, the Company's Chairman,
Chief Executive Officer, and President, said.

    ABOUT MOBITEC

    The premier supplier of electronic destination sign systems in the
Nordic markets, the Company's Mobitec subsidiary is highly respected
for its products, technology, service, and quality. Based in
Herrljunga, Sweden, Mobitec has business units in Australia, Brazil,
and Germany. Its acquisition by DRI in June 2001 significantly
expanded the Company's geographical reach.

    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 DAC(R) 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 timing and amount of the new
order, the expected delivery dates, the Company's competitive
advantages, 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 related to the product order's expected
results and delivery dates, the Company's competitive advantages, as
well as other risks and uncertainties set forth in our Annual Report
on Form 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