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): April 28, 2004

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

                             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 April 28, 2004, Digital Recorders, Inc. (the "Company") announced in a press
release that its Mobitec AB (Mobitec) subsidiary in Sweden has signed a new
frame agreement with Volvo Bus Corporation (Volvo). As part of the new frame
agreement, Mobitec will provide electronic destination sign systems to Volvo
worldwide. Valid for two years, the agreement is renewable and is a continuation
of the relationship that Mobitec has held with Volvo for many years. 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: April 28, 2004        By:  /s/ DAVID L. TURNEY
                                 -----------------------------------------------
                                 David L. Turney
                                 Chairman, Chief Executive Officer and President

EX-99.1

                                                                    Exhibit 99.1


Digital Recorders Inc. Announces New Frame Agreement With Volvo of Sweden

    DALLAS--(BUSINESS WIRE)--April 28, 2004--Digital Recorders Inc.
(DRI) (Nasdaq:TBUS), a market leader in transit, transportation and
law enforcement digital communications and audio enhancement systems,
announced today that its Mobitec AB (Mobitec) subsidiary in Sweden has
signed a new frame agreement with Volvo Bus Corporation (Volvo).
    As part of the new frame agreement, Mobitec will provide
electronic destination sign systems to Volvo worldwide. Valid for two
years, the agreement is renewable and is a continuation of the
relationship that Mobitec has held with Volvo for many years.
    "We are honored to have Volvo's continued and reaffirmed
confidence in Mobitec as its primary supplier of information systems
worldwide. We believe that this agreement and cooperation with Volvo
will lead to development of new markets for Mobitec and potentially
yield higher business volume. Mobitec management is to be commended
for demonstrating once again its ability to deliver high quality and
technologically competitive products at attractive prices with strong
customer service support. These attributes, which are expected by our
customers such as Volvo, are what we strive to consistently deliver,"
David L. Turney, the Company's Chairman, Chief Executive Officer and
President, said.
    Volvo, one of the largest bus vehicle and bus vehicle chassis
manufacturers in the European market, has operations worldwide.

    ABOUT MOBITEC

    Based in Goteborg, Sweden, Mobitec is highly respected for its
products, technology, service and quality. The premier supplier of
electronic destination sign systems in the Nordic markets, Mobitec
also has business units in Australia and Germany, as well as a joint
venture in Brazil.
    As part of senior management's plans to grow at an accelerated
pace through internal and external means, the Company completed its
acquisition of Mobitec in June 2001. The acquisition significantly
expanded the Company's geographical reach and cross-selling
opportunities.

    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, express or 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 relationships with its lenders
and creditors. 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 and the risks associated
with our business.

    CONTACT: Digital Recorders Inc., Dallas
             Veronica B. Marks, 214-378-4776
             veronicam@digrec.com