Exhibit 99.1


      Digital Recorders, Inc. Notes 3.2 Percent Increase in U.S.
            Public Transit Ridership in First Half of 2006


    DALLAS--(BUSINESS WIRE)--Oct. 10, 2006--Digital Recorders, Inc.
(DRI) (Nasdaq:TBUS), a digital communications technology leader in the
transportation, law enforcement, and security industries, noted today
that, according to a recent report from the American Public
Transportation Association (APTA), U.S. public transportation
ridership grew by 3.2 percent in the first half of 2006 as Americans
took nearly 5 billion trips via mass transit.

    "According to a recent APTA ridership report, U.S. transit
ridership increased by 3.2 percent during the first half of 2006. I
believe that increase is most noteworthy. As noted in our press
release dated Jan. 24, 2006, there was an apparent spike in ridership
during the upsurge of gas prices in third quarter 2005. Our focus has
been on what would happen if and when gas prices started back down.
Now a pattern seems to be emerging and it is indeed positive.
Ridership has held at levels above the prior long-term trends. In the
USA TODAY edition published Oct. 2, 2006, the continuing and
accelerated use of mass transit was noted in an article entitled,
'Mass Transit Still Hot After $3 Gas: Ridership Remains High Despite
Falling Prices at Pump.' While we believe that more time is needed to
fully validate the trend, we are of the opinion that such does align
well with our plans and outlook for growing revenue. Increased transit
ridership potentially brings with it an increased demand for
transportation-related equipment in DRI's domestic market. Continued
increases in U.S. transit ridership very well may help DRI to achieve
further growth," David L. Turney, the Company's Chairman, President,
and Chief Executive Officer, said.

    The latest APTA ridership report indicated the following ridership
increases were posted in the first half of 2006: light rail (modern
light rail, streetcars, trolleys, and heritage trolleys), 9.4 percent;
commuter rail, 3.4 percent; heavy rail (subways), 2.6 percent; bus
ridership, 3.2 percent; demand response (paratransit), 3.8 percent;
trolleybus, 0.5 percent; and all other types of public transportation,
0.6 percent.

    For the complete APTA ridership report, go to
http://www.apta.com/research/stats/ridership/.

    ABOUT APTA

    APTA is a nonprofit international association of 1,600 member
organizations including public transportation systems; planning,
design, construction and finance firms; product and service providers;
academic institutions; and state associations and departments of
transportation. APTA members serve the public interest by providing
safe, efficient and economical public transportation services and
products. APTA members serve more than 90 percent of persons using
public transportation in the United States and Canada. For more
information, go to www.apta.com.

    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 APTA's facts and beliefs about
the public transit industry, any pattern regarding gas prices and
transit ridership that might be inferred from reading the USA TODAY
article published Oct. 2, 2006, management's beliefs that continued
increases in U.S. transit ridership could help DRI to achieve further
growth, 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 APTA's facts and beliefs about the public
transit industry, any patterns regarding gas prices and transit
ridership that might be inferred from reading the USA TODAY article
published Oct. 2, 2006, or management's beliefs that continued
increases in U.S. transit ridership could help DRI to achieve further
growth may not be accurate, 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