Exhibit 99.1

 Digital Recorders, Inc. Announces Participation in Upcoming Investor Relations
        Conference and Meetings; CEO Comments on DRI's Long-Term Outlook

     DALLAS--(BUSINESS WIRE)--Sept. 7, 2006--Digital Recorders, Inc. (DRI)
(Nasdaq:TBUS), a digital communications technology leader in the transportation,
law enforcement, and security industries, announced today that its senior
management team plans to meet with financial professionals during an investor
relations conference and in private meetings slated Sept. 18-20 in New York.
     "As we mentioned during our second quarter 2006 shareholders' conference
call, we are increasing our investor relations and communications work in the
coming months to help ensure a better understanding of the Company. We plan to
present the DRI story during Friedland Investment Events' Micro-Cap 2006
Conference on Sept. 19 at the Doubletree Guest Suites Hotel in Manhattan. The
conference is open to analysts, brokers, portfolio and fund managers,
institutional investors, and other members of the financial community. In
addition, we are scheduling private meetings with key New York-area financial
professionals, including present and prospective holders of our common and
preferred stock," David L. Turney, the Company's Chairman, President, and Chief
Executive Officer, said.
     The DRI senior management team's presentation at the conference and in the
private meetings will include commentary on the Company's served markets,
opportunities, products and services, and financial information. It also will
include discussion of the Company's long-term outlook.

     LONG-TERM OUTLOOK

     According to Mr. Turney, the Company's developing business plans
preliminarily indicate long-term growth strategies may yield an annualized
revenue run rate exceeding $80 million during the 2007-2009 era, rising above
the $50 million-plus range expected for 2006. He believes this level of revenue
should allow the Company to achieve profitability.
     "As we have reported, an uptrend in the U.S. transit market appears to be
underway. For all practical purposes, we are now seeing and projecting a return
to the revenue trends that we laid out in our prior plans. Those plans were
deflected by U.S. transit market weaknesses spawned by the long delay in federal
funding legislation. Our presently planned revenue growth is substantially
attributable to the U.S. transit market's recovery. However, it should be noted
that growth is occurring in our international markets, and we have developed and
added new products, new served markets, and new customers -- all of which should
contribute to our projected long-term growth. We plan to further emphasize
virtually all of those areas as we also strive to achieve further cost
reductions and carefully manage expenses," Mr. Turney said.

     ABOUT FRIEDLAND CAPITAL

     Friedland Investment Events LLC is the world's largest sponsor of financial
and investment events, sponsoring hundreds of events annually, in 18 U.S. cities
and three European cities. These events include all-day conferences, luncheons,
and cocktail receptions.
     Friedland Investment Events LLC is an affiliate of Friedland Corporate
Investor Services LLC and Friedland Capital Inc. (www.friedlandworldwide.com).
Friedland Corporate Investor Services provides financial marketing and investor
awareness programs to privately held and publicly held companies, as well as
sponsors of investment programs and products.
     Friedland Capital Inc. is a U.S.-based merchant bank and advisory firm with
offices in New York, Dallas, Denver, Beijing, and Guangzhou. Among its
activities, Friedland Capital provides corporate finance advisory services to
enable publicly traded and privately held emerging growth companies, as well as
sponsors of investment programs worldwide, to achieve their short-term capital
goals and to realize their long-term business objectives.

     ABOUT THE COMPANY

     Digital Recorders, Inc. is a digital communications technology leader in
the transportation, law enforcement, and security industries. Using proprietary
hardware and software applications, our products improve the flow and mobility
of people through transportation infrastructure, improve energy efficiency,
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. By assisting transit vehicle operators' quest to
increase ridership, our products also help reduce dependence on fuel. 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 DRI senior management team's participation in New York
investor relations events and private meetings, any impact on the Company's
stock performance as a result of such participation, management's projections
for the Company's long-term growth and revenue, 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 anticipated outcome of the DRI senior management team's participation in New
York investor relations events and private meetings, the anticipated impact on
the Company's stock performance as a result of such participation, the
anticipated outcome of management's projections for the Company's long-term
growth and revenue, may not prove beneficial to the Company, 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