EXHIBIT 99.1


 Digital Recorders, Inc. Announces International Order for Electronic
                       Destination Sign Systems

    Brazilian Order for Mobitec(R) Products Valued in Excess of $1
                              Million USD

    DALLAS--(BUSINESS WIRE)--May 2, 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 the Mobitec Brazil Ltda. joint venture
of its Swedish subsidiary Mobitec AB (Mobitec) has received an order
for Mobitec(R) electronic destination sign systems valued in excess of
$1 million USD.

    "This product order is destined for Columbia, which is one of
several potentially new or expanding markets we have identified in our
2007 strategic plan. The Columbia order is for electronic destination
sign systems that will be installed on new MarcoPolo transit buses.
The Mobitec Brazil Ltda. operating team expects to begin delivery in
second quarter 2007 from our operation in Caxias Do Sul, Brazil, and
to conclude delivery in third quarter 2007. I commend the Mobitec team
for this achievement and plan. This is a record-high order for Mobitec
in the Columbia market; in our overall South American market, it is
second only to the $1.9 million USD order for Santiago, Chile, that we
captured in May 2005 and announced at that time," David L. Turney, the
Company's Chairman, President, and Chief Executive Officer, said.

    ABOUT MOBITEC AB

    A premier supplier of electronic destination sign systems in the
Nordic markets, the Company's Mobitec AB subsidiary is highly
respected for its products, technology, service, and quality. Based in
Herrljunga, Sweden, Mobitec AB has business units in Australia and
Germany, as well as a 50 percent owned venture in Brazil. The
Company's acquisition of Mobitec AB in June 2001 significantly
expanded its geographical reach.

    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 the
Mobitec(R) order or its expected delivery and installation dates, our
belief that Columbia presents a potentially new or expanded
marketplace for our goods and services, and our belief that this order
fits in with achieving our 2007 strategic goals, 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 Mobitec(R) orders, delivery and installation, risks that
Columbia may not represent a new or expanded market for out goods and
services, and risks that this order may not significantly contribute
to our 2007 strategic goals, 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