Exhibit 99.1


                      Press Release Dated December 20, 2006



                        Digital Recorders, Inc. Announces
                 Orders for Digital Communications Products with
                    Security Features in U.S. Transit Market

                   Combined Orders Total More Than $1 Million


     DALLAS--(BUSINESS WIRE)--Dec. 20, 2006--Digital Recorders, Inc. (DRI)
(NASDAQ:TBUS), a digital communications technology leader in the transportation,
law enforcement, and security industries, announced today that its Digital
Recorders division and TwinVision na, Inc. business unit, both based in Research
Triangle Park, N.C., have received orders representing a combined total of more
than $1 million from an existing U.S. transit industry customer for digital
communications products with security features.

     "These orders illustrate continued recognition of the utility of our
digital communications products in core transit and security applications,"
David L. Turney, the Company's Chairman, President, and Chief Executive Officer,
said.

     With expected delivery and installation on new bus vehicles during first
and second quarter 2007, the digital communications products ordered include:

     --   Digital Recorders(R) DR600(R) Voice Announcement System with global
          positioning satellite capabilities,

     --   Digital Recorders(R) Automatic Vehicle Locating System,

     --   VacTell(TM) Video Actionable Intelligence System, and

     --   TwinVision(R) Electronic Destination Sign Systems.

     ABOUT THE DIGITAL RECORDERS DIVISION

     The Company's Digital Recorders division develops and manufactures
intelligent transportation products for the transit industry. Products include:
computer aided dispatch/automatic vehicle location systems; automatic vehicle
monitoring systems; Talking Bus(R) automatic voice announcement systems;
vandal-resistant, hands-free driver microphones; and more. For more information
about the Company's Digital Recorders division, go to www.talkingbus.com.

     ABOUT THE TWINVISION NA, INC. BUSINESS UNIT

     Established in 1996, TwinVision na, Inc. designs, manufactures, sells, and
services TwinVision(R) electronic destination sign systems used on public
transit vehicles. For more information about the Company's TwinVision na, Inc.
business unit, go to www.twinvisionsigns.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 the timing and amount of new orders or their expected
delivery and installation dates, 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 assumptions behind the products'
order, delivery and installation, or significance in a particular market, 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