Exhibit 99.1

         Digital Recorders, Inc. Discusses Shareholder Value


    DALLAS--(BUSINESS WIRE)--June 12, 2007--Digital Recorders, Inc.
(DRI) (NASDAQ: TBUS), a digital communications technology leader in
the domestic and international public transportation and transit
security markets, announced today that management is investigating the
implementation and/or acceleration of additional actions that may help
the Company increase shareholder value.

    Additional actions under consideration by management include:

    --  Expanding recognition of the Company's participation in a
        number of important international markets and the fact that a
        substantial and growing part of the Company's business is
        derived from those markets;

    --  Renewing the Company's evaluation of potentially strategic
        options in the U.S. and abroad, including possible mergers and
        acquisitions;

    --  Retaining an investor relations firm to assist management in
        educating the investing public about the Company's products
        and services, as well as in initiating coverage by financial
        analysts.

    "In my opinion, this Company has made solid progress and
improvements. We have recorded six consecutive quarters of
period-over-period operating improvements, increased our backlog, and
received significant orders in both new and existing markets at home
and abroad. We believe that the market for our products and services
is more favorable now than it has been in the last several years.
Further, we expect 2007 to be profitable. Additionally, our products
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. As such, we believe our efforts contribute
to the solution of some of the hot-button issues of our time,
including reducing our reliance on fossil fuels, assisting the quest
for improved, 'green' environmental actions, improving quality of
life, and making public transportation safer and more comfortable. We
intend to consider all viable alternatives as we energetically
continue our efforts to improve the Company and to increase
shareholder value," David L. Turney, the Company's Chairman,
President, and Chief Executive Officer, said.

    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 about the Company's potential merger and
acquisition options in the U.S. and abroad, its investor relations
efforts, its expectations in achieving profitability, its assessment
of the current market for its products and services, 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 statements about the Company's potential merger and
acquisition options in the U.S. and abroad, its investor relations
efforts, risks that the Company may not have a profitable year in
2007, risks that it has not properly assessed the current market for
its products and services, 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