Exhibit 99.1

             Digital Recorders, Inc. Appoints Additional
          Leadership for Company's North Carolina Operations

    DALLAS--(BUSINESS WIRE)--Dec. 1, 2006--Digital Recorders, Inc.
(DRI) (NASDAQ: TBUS), a digital communications technology leader in
the transportation, law enforcement, and security industries,
announced today that Tanya L. Johnson has been promoted to Vice
President of Operations and that James Kennedy, as Vice President of
Engineering, has assumed additional management responsibilities at
Company's North Carolina Operations in Durham, N.C.

    "Tanya and Jim have been dedicated employees for a number of
years. They are very talented professionals with great leadership
qualities and the sense of urgency that today's fast-paced,
technology-driven business world commands. We're confident that they
will excel in our ongoing efforts to increase revenues, reduce costs
and expenses, design and launch new products fortified with the latest
technology, and achieve profitability," David L. Turney, the Company's
Chairman, President, and Chief Executive Officer, said.

    ABOUT TANYA L. JOHNSON

    Co-developer of the Company's Talking Bus(R) technology, Ms.
Johnson has more than 15 years' transit-industry experience. Prior to
her recent promotion, she served as the Company's Vice President of
Engineering and Interim Operations Manager of North Carolina
Operations since June 2006. Ms. Johnson has also served in other key
roles within the Company. From August 2005 to June 2006, she was
Director, Engineering. From August 2002 to July 2005, she was
Director, Business Development. From January 1998 to May 2002, she was
Vice President and General Manager of the Company's Digital Recorders
(DR) business unit. Before joining the Company, Ms. Johnson held
various engineering and management positions within the electronics
industry. Ms. Johnson is an active member of the American Public
Transportation Association. A 1985 graduate of Duke University, she
earned a B.S.E.E. degree in Electrical Engineering.

    ABOUT JAMES KENNEDY

    Mr. Kennedy has more than 20 years' experience in engineering and
five years' experience in the transit industry. In March 2004, he was
promoted to Vice President of Engineering at the Company's DR business
unit. He also assumed technical responsibilities for the Company's
TwinVision na, Inc. business unit in 2005. Previously, he was the DR
business unit's Director of Engineering. He joined the Company in
1999. Before joining the Company, Mr. Kennedy served as Director of
Engineering at QMD, Inc., in Raleigh, N.C. He also served as Senior
Member of Technical Staff at Rabbit Software Corp, also based in
Raleigh. A member of the Society of Automotive Engineers, he has
received two patents for consumer and transit products. A 1979
graduate of the University of Kentucky, Mr. Kennedy holds a B.S.E.E.
and M.S.E.E. from that institution.

    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 may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
In particular, any statement, express or implied, concerning future
events or expectations, including without limitation, the potential
positive effects of Ms. Johnson's and Mr. Kennedy's efforts on behalf
of the Company, 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, without limitation, risk that Ms. Johnson's
and Mr. Kennedy's efforts on behalf of the Company may not have the
positive effects the Company anticipates, 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