8-K

                                  UNITED STATES

                       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): September 17, 2003

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

                             Digital Recorders, Inc.

             ------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)


         North Carolina                   1-13408                56-1362926
 (State or Other Jurisdiction of   (Commission File Number)    (IRS Employer
         Incorporation)                                      Identification No.)

                5949 Sherry Lane, Suite 1050, Dallas, Texas 75225
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's Telephone Number, Including Area Code (214) 378-8992







Item 9.  Regulation FD Disclosure

On September 17, 2003, Digital Recorders, Inc. (the "Company") announced in a
press release the Company's three-year Teaming Agreement with GE Transportation
Systems Global Signaling, LLC (GETSGS) through General Electric's (GE) Advanced
Communications division based in Hingham, Mass. A copy of the Company's press
release is attached hereto as Exhibit 99.1 and is incorporated herein by
reference. This Form 8-K and the attached exhibit are provided under Item 9 of
Form 8-K and are furnished to, but not filed with, the Securities and Exchange
Commission.






Signature(s)

         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: September 17, 2003                       By:    /s/ DAVID L. TURNEY
                                                      --------------------------
                                                      David L. Turney
                                                      Chairman, Chief Executive
                                                      Officer and President







                                  Exhibit 99.1

                     Press Release Dated September 17, 2003

EX-99

                                                                Exhibit 99.1


       Digital Recorders, Inc. Announces Teaming Agreement with
 General Electric's Transportation Systems Global Signaling Division


    DALLAS--(BUSINESS WIRE)--Sept. 17, 2003--Digital Recorders, Inc.
(DRI) (NASDAQ: TBUS), a market leader in transit, transportation and
law enforcement digital communications and audio enhancement systems,
announced today that, through its Digital Recorders (DR) division
based in Research Triangle Park, N.C, it has signed a three-year
Teaming Agreement with GE Transportation Systems Global Signaling, LLC
(GETSGS) through General Electric's (GE) Advanced Communications
division based in Hingham, Mass.
    Through this Teaming Agreement, DRI and GETSGS will work together
to deliver advanced technology systems integration projects. The DR
division will focus on vehicle location and passenger information
processing and delivery systems while GETSGS will focus on
communications technology, project management, and system integration.
    "DRI has developed truly superior vehicle tracking and passenger
information technology products, the most recent of which is our new
DR-Talking Bus(R) DR600 series product. We are already delivering
these global positioning satellite (GPS)-based vehicle location
products to our traditional customers and served market. Through this
Teaming Agreement with GE - an organization that is highly respected
and uniquely capable of integrating our products with much larger
systems in ways that exceed our independent technological and
financial abilities - we will significantly extend our transit market
reach," David L. Turney, the Company's Chairman, Chief Executive
Officer and President, said.
    According to Mr. Turney, the DRI management team believes the
GPS-based vehicle location products may represent one of the Company's
more significant internal growth opportunities in fiscal year 2004.
"Our goal is to grow this segment of our business by a factor of at
least two times during the term of this Teaming Agreement. With
success in reaching that goal, we should be able to grow the Company's
present overall total revenues by more than 20 percent."

    ABOUT GETSGS

    GETSGS and the GE Advanced Communications division are located in
Hingham, Mass. Both are part of GE Transportation Systems. GE
Transportation Systems (http://www.getransportation.com/) is one of
the world's leading suppliers to the railroad, transit, marine,
stationary and mining industries, providing freight and passenger
locomotives, motorized systems for mining trucks and drills, railway
signaling and communications systems, value-added services and
information technology solutions to its customers. With sales in
excess of $2 billion, GE Transportation Systems employs approximately
8,000 people worldwide. (NYSE: GE)

    ABOUT THE COMPANY

    Digital Recorders, Inc. is a market leader in transit,
transportation and law enforcement digital communications and audio
enhancement systems using proprietary software applications. Our
products improve the flow and mobility of people through
transportation infrastructure, as well as enhance law enforcement
agencies' surveillance capabilities. Our transit communications
products -TwinVision(R) and Mobitec route destination signage systems,
Talking Bus(R) voice announcement systems, and Internet-based,
automatic vehicle monitoring systems - enhance public transportation
around the globe. Our electronic surveillance tools, including
microphone amplifiers and processors, countermeasures devices, speech
activity detectors, and radio/television noise cancellers, help
law-enforcement agencies worldwide capture, arrest and prosecute
criminals. For more information about DRI 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, 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 those described below. There can be
no assurance that any expectation implied in a forward looking
statement will prove correct, or that the contemplated event or result
will occur as anticipated. The risks associated with forward looking
statements 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 results
of implementing the Company's business plan, and the impact on the
Company of its relationship with its lender. Refer to the Company's
various Securities and Exchange Commission filings, such as its Forms
10-Q and 10-K, for further information about forward-looking
statements.


    CONTACT: Digital Recorders Inc., Dallas
             Veronica B. Marks, 214-378-4776
             Fax: 214-378-8437
             E-Mail: veronicam@digrec.com
             www.digrec.com