Exhibit 99.1

Digital Recorders, Inc. Announces International Conference Participation

   Mobitec AB Subsidiary to Exhibit at 57th UITP World Congress and
                         Exhibition in Finland


    DALLAS--(BUSINESS WIRE)--May 16, 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 will exhibit at the 57th International Association of Public
Transport (UITP) World Congress and Exhibition in Helsinki, Finland,
from May 20-24, 2007.

    "During this biennial event, the Mobitec team will showcase
Mobitec(R) products in Booth #3G300. They also will meet with leading
bus vehicle manufacturers and operators from around the world, as well
as have numerous formal meetings and networking opportunities. During
this event, I will be personally involved in supporting Mobitec. As
our recent news announcements have indicated, Mobitec has made great
progress in opening new markets and increasing penetration in existing
markets. Based on internal market studies, we believe that Mobitec
holds a majority market share in the Nordic markets. The UITP event
should afford significant opportunities for our Mobitec team to access
potential and existing customers from Russia and the Baltic states,"
David L. Turney, the Company's Chairman, President, and Chief
Executive Officer, said.

    Founded in 1885, UITP is the international network of public
transportation professionals representing over 2,700 urban, local,
regional, and national mobility groups from more than 90 countries on
all continents. UITP unites the entire public transportation supply
chain, including: operating companies; local, regional, and national
authorities; the service and supply industry; and research institutes,
academics, and consultants. For more information, go to
http://www.uitp.com.

    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. For more
information, go to http://www.mobitec.se/.

    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 may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
In particular, any statement, express or implied, concerning future
events or expectations, such as the Company's belief that the UITP
event may increase the Mobitec AB subsidiary's visibility with
potential and existing customers, 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
possibility that the UITP event may not increase the Mobitec AB
subsidiary's visibility with new and existing customers, 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