Exhibit 99.1



                       Digital Recorders, Inc. Announces
     Order for Digital Video Communications Products with Security Features



    DALLAS--(BUSINESS WIRE)--April 3, 2007--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, based in Research Triangle
Park, N.C., has received an order from Des Moines Area Regional
Transit Authority in Iowa for more than $350,000 worth of digital
video surveillance products designed especially for transit security.

    "The Des Moines order is for our next generation of transit
security products, including digital video recorders and infrared
cameras, available through DRI's agreement with Verint Systems Inc.
(Nasdaq:VRNT) of Melville, N.Y. Verint's latest mobile digital video
recorder, which uses MPEG4 technology, is designed to provide high
quality video surveillance with several important features to improve
transit security. Among those features are extended recording times,
more frames per second on each camera, and an improved desktop
interface. We expect to begin and conclude the delivery and
installation of these transit security products in second quarter
2007," David L. Turney, the Company's Chairman, President, and Chief
Executive Officer, said.

    The Company entered into a previously announced agreement with
Verint Systems Inc., a leading provider of actionable intelligence
solutions, in 2005. Through the agreement, the Company has introduced
several new security-related products and services within DRI's core
intelligent transportation system (ITS) market.

    Mr. Turney said this security-specific order highlights progress
that the Company is making in the slowly emerging transit security
market. "Since Sept. 11, 2001, terrorist groups have repeatedly waged
war through actual and thwarted attacks on public transportation
systems - in London, Madrid, Bombay, New York City, and Boston. On the
U.S. federal funding front, recent legislative actions have been made
by Congress in an attempt to help improve public transportation and
transit security over the course of the next several years."

    Mr. Turney believes that security risk mitigation is of increasing
importance for operators of transportation systems. "With the
ever-present threat of terrorist activities around the globe, I would
list among the transit industry's top concerns in the context of
security: (1) the need for timely detection of security threats; (2)
the need for enabling prompt and appropriate response by transit
operators and law enforcement personnel; and (3) the need for
pro-active measures that will help deter terrorist actions. DRI is
dedicated to addressing these concerns as they apply to our core ITS
business and to providing solutions through our products and
services."

    Mr. Turney also said that DRI's business is rooted in the well
established ITS market. "We already have established products and in
proven and established markets. Our ITS business has always provided a
certain degree of security risk mitigation benefit, and we're
continuing the expansion of our product mix to significantly expand
that benefit. I should also note that, in serving the global transit
market's mobility improvement mission, we also indirectly address
energy conservation and environmental concerns in a very positive
manner. Greater use of transit-based mobility alternatives may lead to
lower tail-pipe emissions and less dependency on fossil fuels."

    ABOUT THE DIGITAL RECORDERS DIVISION

    Established in 1983, 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 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
the potential benefit such orders may have on our ongoing operations;
statements regarding our assessment of the emerging transit security
market and our perception that there are opportunities for the Company
should such markets emerge, together with 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 the risk that the assumptions behind the
products' order, delivery and installation are incorrect, the risk
that we have overestimated the emergence of the transit security
market and/or the opportunities that may exist for the Company should
such market emerge, as well as other risks and uncertainties set forth
in our Annual Report on Form 10-K filed March 28, 2007, 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