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Digital Ally Receives Notable Orders for Body Camera and In-Car Audio/Video Systems With Patented VuLink(TM) Integration

LENEXA, KS — (Marketwired) — 12/22/15 — Digital Ally, Inc. (NASDAQ: DGLY) (“Digital” or the “Company”), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced the receipt of notable law enforcement agency orders for its FirstVu HD body-worn camera, DVM-800 in-car digital audio/video system, VuVault server software, and patented VuLink automatic activation system, along with additional orders received by the Company–s commercial division.

The Santa Fe Police Department has been a longstanding Digital Ally customer (since 2008) and currently deploys the DVM-500 Plus Legacy in-car digital audio/video system. The latest order represents an initial deployment of FirstVu HD body-worn cameras and an upgrade in the department–s existing in-car video equipment video suite to include Digital Ally–s latest in-car video system, the DVM-800. Santa Fe–s most recent orders include 90 FirstVu HD body cameras and docking stations, along with 30 DVM-800 in-car digital video systems. The Santa Fe PD is expected also to deploy Digital Ally–s patented VuLink connectivity system, which provides “hands-free activation” of the body-worn cameras and the in-car video systems in a fully integrated manner.

“This order illustrates an industry-wide trend in which a growing number of law enforcement agencies are choosing Digital Ally as their ,” stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. “Our superior products and comprehensive back office software are fully integrated, thereby truly setting us apart from our competitors. The Santa Fe Police Department is just one of many agencies that have selected Digital Ally as their –one-stop– video solution provider. An important factor in obtaining these orders is the ability to offer our patented VuLink in-car system, which allows our digital audio/video cameras (such as the DVM-800) and our body-worn cameras to automatically and simultaneously start recording once either of the devices is activated. This allows multiple recordings of the same event from different perspectives in order to provide a more comprehensive recording of incidents in the field.” The Company is very pleased that a recent challenge by a competitor of Digital Ally–s VuLink patent was rejected by the United States Patent and Trademark Office (USPTO) when it issued a Notice of Intent to Reissue a Reexam Certificate for the Company–s patent.

Brevard County Sheriff–s Office has been a customer of Digital Ally since 2010 and currently deploys the DVM-100 Legacy in-car digital audio/video system in its vehicle fleet. Its latest order represents an upgrade to the department–s existing in-car video equipment video suite to include Digital Ally–s latest in-car video system, the DVM-800. The Brevard County Sheriff–s Office has placed an initial order for 30 DVM-800 in-car systems, and the department is expected to progress towards full fleet deployment. “We continue to develop and introduce innovative new products and improve our existing products in order to meet the evolving needs of our customers,” noted Digital Ally CEO Stanton E. Ross. “Brevard County Sheriff–s Office is just one of many long-time customers to recognize the unmatched product and service capabilities that Digital Ally provides with every solution.”

Orders from commercial customers have also been improving since October, continuing a trend that began with the launch of FleetVu last year. The FleetVu Manager provides real-time alerts that allow management to be connected 24/7 from any location to continuously monitor and evaluate driver behavior and vehicle utilization. Other benefits include the integration of instantaneous alerts into pre- and post-operation inspections, thereby maximizing driver safety and minimizing maintenance delays. As a result, the system may be instrumental in reducing accidents, fraud and litigation risks.

Digital Ally has partnered with the Kansas City Transportation Group (KCTG), which now has over 500 Digital Ally DVM 250 cameras installed or slated for installation throughout the Kansas City Metropolitan Area. The focus of this partnership is to improve driver and customer safety. Due to the success of this partnership and a continued rollout with KCTG–s parent company, Transdev North America, Digital Ally has completed a test and evaluation process in the Denver area. The Company will be installing 100 units in many of Transdev–s locations throughout Colorado and in vehicles in West Palm Beach, Florida. This is a direct result of legislation requiring video in all vehicles that transport customers on and off airport property. Stan Ross, CEO of Digital Ally, said, “Our primary focus has been taxis, vans and busses. We believe our video provides an extra element of security and functionality for Transdev–s current services, as well as for the future with its zTrip, black car and taxi, and smartphone app.”

Other notable orders in the fourth quarter for law enforcement and commercial customers include:

ProTransport-1, CA (commercial)

Wichita County Sheriff–s Office, TX (law enforcement)

Montgomery County Sheriff–s Office, KS (law enforcement)

Box Elder Sheriff–s Office, UT (law enforcement)

Somerset County Sheriff–s Office, MD (law enforcement)

Gainesville Police Department, GA (law enforcement)

Elkhart Police Department, IN (law enforcement)

Val Verde County Sheriff–s Office, TX (law enforcement)

Digital Ally–s FirstVu HD body-worn video cameras are the most versatile on the market. They offer multiple camera and mounting options with crystal-clear high definition audio and video capabilities. When paired with Digital Ally–s DVM in-car video systems and its patented VuLink technology, the FirstVu HD allows for hands-free activation of an officer–s in-car and body-worn camera systems simultaneously. VuVault supports full system control and management, including the ability to view the video feed, add notes and play back recorded videos. It also allows for secure remote access to recording camera controls, GPS and event tagging.

The DVM-800 is a top-of-the-line in-car audio/video system that is integrated into a rear view mirror, primarily designed for law enforcement personnel. This system utilizes two internal fixed-focus cameras and two external cameras, for a total of four video streams.

Digital Ally is proud to design and assemble its products in the United States and proudly serves over 8,000 agencies in all 50 states.

Digital Ally is a leading global designer, manufacturer and innovator in the growing field of digital technology. Digital Ally is the only company serving the military, law enforcement, fire, emergency medical services and the commercial fleet industries that is capable of providing the complete end-to-end hardware and software solution. The company–s product lines include in-car audio/video recording equipment, body-worn cameras, cloud and local server software and storage solutions. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide. Digital Ally is headquartered in Lenexa, Kansas. For news and information please visit or follow us on Twitter @digitalallyinc and Facebook

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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: whether sales to law enforcement departments such as the Santa Fe and Brevard County based law enforcement agencies will help to generate additional sales of our products to these agencies as well as other law enforcement agencies; whether the Company will be able to compete successfully in the marketplace to generate additional sales of its products in side-by side comparisons with other companies– products; whether the Company will be able to protect its intellectual property including its patented VuLink technology; whether the trend of improving commercial customer orders will continue for the balance of 2015 and into 2016; and whether the Company can adapt its technology to new and different uses. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company–s disclosures. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words “believes”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, “projects”, “should”, or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2014, and its Form 10-Q for the three and nine months ended September 30, 2015, as filed with the Securities and Exchange Commission.

For Additional Information, Please Contact:

Stanton E. Ross
CEO
(913) 814-7774
or
RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893

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