Exhibit 99.1

                       Digital Recorders, Inc. Announces
                             Joint Venture in India


    --  Cast Master Mobitec India Private Limited to Begin Operations
        in the Second Half of Fiscal Year 2007

    --  Launch Details to Be Discussed This Week at UITP Event in
        Helsinki, Finland

    Business Editors/High-Tech Editors

    DALLAS--(BUSINESS WIRE)--May 22, 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 subsidiary in Sweden has entered
into a 51 percent joint venture with Cast Master Enterprise Private
Ltd. of New Delhi to produce, sell, and service Mobitec(R) electronic
destination sign systems for India's transit market and selected other
markets in that region.

    Operating under the name "Cast Master Mobitec India Private
Limited" (Cast Master-Mobitec), the new joint venture is expected to
begin operations in the second half of fiscal year 2007. It has
exclusive rights and responsibilities for Mobitec(R) product sales and
service in India and selected other markets in that region. In due
course, it also will provide limited product assembly operations.

    "The Cast Master-Mobitec joint venture signifies our entry into
yet another new exciting market. This week during the 57th
International Association of Public Transport (UITP) World Congress
and Exhibition in Helsinki, Finland, we are discussing and fine-tuning
launch details. As is generally true for many international markets,
the market in India is potentially larger than the U.S. market. In
fact, market data suggests that the Indian market may ultimately be
several times larger. Present market penetration for products such as
our Mobitec(R) electronic destination sign systems is quite low at
this stage, so this is a great growth opportunity in a growing and
rapidly developing market. We expect new vehicle production acceptance
of our products, as well as our revenue, to ramp up over time," David
L. Turney, the Company's Chairman, President, and Chief Executive
Officer, said.

    ABOUT CAST MASTER

    Based in New Delhi, Cast Master Enterprise Private Ltd. is a
well-established supplier of aluminum, zinc, and copper die cast and
other automotive products to original equipment manufacturers in the
Indian automotive sector. It has more than 600 employees and annual
revenues in excess of $75 million USD. Customers include Tata Motors,
Honda, Kawasaki, Mazda, Yamaha, Philips, Honda, Ericsson, Lombardini,
and more. Some of Cast Master's customers are leading producers of
transit bus vehicles in India -- including Tata Motors, Ashok Leyland,
Eicher, and others -- and provide sales and service of other transit
vehicle electronic components such as fare collection equipment and
multiplexing systems. Cast Master also has extensive exposure to
Japanese, European, and American technology and quality standards. For
more information, go to http://www.castmaster.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 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 work
that will be done through the joint venture with Cast Master, the
timing and amount of Mobitec(R) products that will be ordered and
installed on bus vehicles in India, 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 joint venture with Cast Master, the Mobitec(R) orders,
delivery and installation on bus vehicles in India may not be
accurate, 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