Exhibit 99.1

   Digital Recorders, Inc. Announces Order for Mobitec(R) Products

  Retrofit Order for Bus and Tram Vehicles in Estonia Valued at More
                           Than $900,000 USD


    DALLAS--(BUSINESS WIRE)--May 8, 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 Mobitec AB (Mobitec) subsidiary in
Sweden has received an order for Mobitec(R) electronic destination
sign systems valued at more than $900,000 USD through a strategic
relationship with another transit information systems supplier in
Sweden.

    "The Baltic States market is among several new or expanding
markets we have identified in our strategic plans for 2007 and 2008.
With this record-making retrofit order for Tallinn, Estonia, we
believe that our Mobitec team has made significant progress in
achieving this strategic goal. We expect delivery for the Tallinn
order to begin in second quarter 2007 and to conclude in first quarter
2008," 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 the Baltic States market presents potentially new or
expanded marketplaces for our goods and services, and our belief that
this order fits in with achieving our 2007 and 2008 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
the Baltic States market may not represent a new or expanded market
for our goods and services, and risks that this order may not
significantly contribute to our 2007 and 2008 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