Contact:  David L. Turney, Chairman, CEO
                                 Digital Recorders, Inc.
                                 (919) 313-3003
                                 davet@digrec.com


In Chicago:
Brien Gately
(847) 296-4200

FOR IMMEDIATE RELEASE
---------------------
June 26, 2001


                         DIGITAL RECORDERS WARRANTS TO EXPIRE

RESEARCH TRIANGLE PARK, N.C. - (June 26, 2001)  Digital Recorders, Inc. (DRI)

(NASDAQ-Small Cap: TBUS), a high-technology microelectronics company and

developer of digital communications systems, today announced it will not

further extend the 1,265,000 Redeemable Warrants to Purchase Common Stock

(the Warrants). The Warrants may be exercised at any time prior to 5:00 P.M.

Eastern Time on June 29, 2000 but not after that time.

DRI develops technologically advanced digital communications systems for
transit and transportation applications as well as digital signal processing
equipment for law enforcement applications.  Law enforcement market products
include MCAP-Registered Trademark- and PCAP-Registered Trademark-. The
company's transit and transportation systems include TALKING BUS-Registered
Trademark-, an on-vehicle internal voice messaging and passenger information
system, and the TwinVision LeDot-Registered Trademark- Destination Sign System
- a proprietary, electronic external destination sign.  FOR MORE INFORMATION
ABOUT DRI VISIT WEBSITE: HTTP://WWW.TIRC.COM/INVEST/DIGITAL/DR-PROFILE.HTM OR
WWW.DIGREC.COM

STATEMENTS WHICH ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE
COMPANIES CONFIDENCE AND STRATEGIES AND ITS EXPECTATIONS ABOUT NEW AND
EXISTING PRODUCTS, TECHNOLOGIES AND OPPORTUNITIES, MARKET AND INDUSTRY SEGMENT
GROWTH, DEMAND AND ACCEPTANCE OF NEW AND EXISTING PRODUCTS ARE FORWARD LOOKING
STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES.  THE RISKS INCLUDE, BUT ARE
NOT LIMITED TO, PRODUCT DEMAND AND MARKET ACCEPTANCE RISKS; THE IMPACT OF
COMPETITIVE PRODUCTS AND PRICING; THE EFFECTS OF ECONOMIC CONDITIONS AND
TRADE, LEGAL, SOCIAL AND ECONOMIC RISKS, SUCH AS IMPORT, LICENSING AND TRADE
RESTRICTIONS; THE RESULT OF THE COMPANY'S BUSINESS PLAN AND THE IMPACT ON THE
COMPANY OF ITS RELATIONSHIP WITH ITS LENDER.

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