8-K

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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



                Date of Report (Date of Earliest Event Reported):
                                DECEMBER 18, 2000


                                ----------------

                             DIGITAL RECORDERS, INC.
             (Exact name of registrant as specified in its charter)



     NORTH CAROLINA                  1-13408                     56-1362926
(State of Incorporation)      (Commission File No.)           (I.R.S. Employer
                                                             Identification No.)




                          4018 PATRIOT DRIVE, SUITE 100
                          DURHAM, NORTH CAROLINA 27703
                    (Address of principal executive offices)



                                 (919) 361-2155
              (Registrant's telephone number, including area code)


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ITEM 5.           OTHER EVENTS

                  On December 18, 2000, the Board of Directors of Digital
Recorders, Inc. (the "Registrant") authorized the extension of the term of its
Redeemable Warrants to Purchase Common Stock (the "Warrants") sold in the
Registrant's public offering in November 1994. As extended, the Warrants may be
exercised at any time prior to 5:00 P.M. Eastern Time on June 29, 2001. All
Warrants not exercised on or prior to such date shall expire, subject to the
right of the Company to extend such date.

                  All other terms of the Warrants remain unchanged.


ITEM 7.           FINANCIAL STATEMENTS AND EXHIBITS

         (c)      Exhibits

                  99.2     Press release dated December 19, 2000 announcing the
                           extension of the warrants until June 29, 2001.



                                   SIGNATURES

                  Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.


                                        DIGITAL RECORDERS, INC.





Date:  December 20, 2000                By: /s/ David L. Turney
                                            ------------------------------------
                                            David L. Turney
                                            Chairman of the Board, President and
                                            Chief Executive Officer






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EX-99.2

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CONTACT:

David L. Turney
Chief Executive Officer and Chairman
919-313-3003
davet@digrec.com

In Chicago:
The Investor Relations Company
Tom Laughran
847-564-5610

FOR IMMEDIATE RELEASE
December 19, 2000

                DIGITAL RECORDERS EXTENDS WARRANT EXPIRATION DATE


RESEARCH TRIANGLE PARK, NC - Digital Recorders, Inc. (DRI) (NASDAQ: TBUS) a
high-technology microelectronics company and developer of digital communications
systems, today announced it has extended the terms of its 1,265,000 Redeemable
Warrants to Purchase Common Stock (the Warrants) at $7.50 per share. As a result
of the extension, the Warrants may be exercised at any time prior to 5:00 P.M.
Eastern Time on June 29, 2001. All other terms of the Warrants remain unchanged.


DRI develops technologically advanced digital communications systems for transit
and transportation applications as well as digital signal processing equipment
for law enforcement applications. The company's transit and transportation
systems include TALKING BUS(R), an on-vehicle internal voice messaging and
passenger information system, and the TwinVision LeDot(R) Destination Sign
System - a proprietary, electronic external destination sign.


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. Use of words such as "expect",
"expected", "believe", "plan", "anticipate", "would", "goal", etc. are intended
to identify forward looking statements that are subject to the foregoing risks
and uncertainties. Refer to the various SEC filings of the company such as its
10q and 10k for further information about such forward looking statements.


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