Exhibit 99.1

Digital Recorders, Inc. Announces Transit Communications Product Order

  Digital Recorders Division Wins Order Valued at Approximately $1.4
                                Million

    DALLAS--(BUSINESS WIRE)--May 1, 2007--Digital Recorders, Inc.
(Nasdaq:TBUS), a digital communications technology leader in the
domestic and international public transportation and transit security
markets, announced today that its Digital Recorders division, based in
Research Triangle Park, N.C., has received an order valued at
approximately $1.4 million from StarTran, the transit system serving
the City of Lincoln, Neb.

    Among the Digital Recorders division's products ordered by
StarTran are: the DR600(R) modular vehicle logic unit featuring global
positioning satellite-triggered functions, the Digital Recorders(R)
cellular-based automatic vehicle locating system, and the Digital
Recorders(R) passenger information system.

    "We are excited about this order because it underscores our belief
that the engineered systems side of our business is gaining strength.
It also supports our assertion that our products, technology and
service in engineered systems continue to win customers. We expect to
begin delivery of these transit communications products in fourth
quarter 2007 and to conclude delivery in second quarter 2008," David
L. Turney, the Company's Chairman, President, and Chief Executive
Officer, said.

    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 domestic and international public transportation and
transit security markets. Our products include: 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. Our products help
increase the mobility, flow, safety, and security of people who rely
upon transportation infrastructure around the globe. Using proprietary
hardware and software applications, our products provide
easy-to-understand, real-time information that assists users and
operators of transit bus and rail vehicles in locating, identifying,
boarding, tracking, scheduling, and managing those vehicles. Our
products also aid transit vehicle operators in their quest to increase
ridership and reduce fuel consumption, as well as to identify and
mitigate security risks on transit vehicles. Positioned not only to
serve and address mobility, energy conservation, and environmental
concerns, our products also serve the growing U.S. Homeland Security
market. For more information about the Company 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," "belief," "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: Company Contact:
             Veronica B. Marks
             Manager, Corporate Communications
             Digital Recorders, Inc.
             Phone: (214) 378-4776
             Fax: (214) 378-8437
             E-Mail: veronicam@digrec.com