Exhibit 99.1

     Digital Recorders, Inc. Announces Israeli Market-Penetrating Order for
                      Electronic Destination Sign Systems

            Mobitec(R) Product Order Valued in Excess of $200,000 USD

     DALLAS--(BUSINESS WIRE)--May 10, 2007--Digital Recorders, Inc. (NASDAQ:
TBUS), a digital communications technology leader in the domestic and
international public transportation and transit security markets, announced
today that the Mobitec GmbH business unit of its Swedish subsidiary Mobitec AB
(Mobitec) has received an order exceeding $200,000 USD for Mobitec(R) electronic
destination sign systems for use on bus vehicles in Israel.

     During second quarter 2007, the Mobitec(R) electronic destination sign
systems will be delivered and installed on new bus vehicles being built at
original equipment manufacturers' factories in the Middle East.

     "This is Mobitec's first significant Israeli order after more than a year's
worth of market penetration work by our team in Germany. The Mobitec(R)
electronic destination sign systems will be part of a larger fleet management
system unique in the Israeli market," David L. Turney, the Company's Chairman,
President, and Chief Executive Officer, said.

     ABOUT MOBITEC AB

     A premier supplier of electronic destination sign systems in the Nordic
markets, the Company's Mobitec AB subsidiary is highly respected for its
products, technology, service, and quality. Based in Herrljunga, Sweden, Mobitec
AB has business units in Australia and Germany, as well as a 50 percent owned
venture in Brazil. The Company's acquisition of Mobitec AB in June 2001
significantly expanded its geographical reach.

     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 concerning the timing and amount of the Mobitec(R) order or its
expected delivery and installation dates, our belief that the Israeli market
presents potentially new or expanded marketplaces for our goods 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 Mobitec(R) orders, delivery and installation, risks
that the Israeli market may not represent a new or expanded market for our goods
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