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Digital Ally to Launch Feature-Rich DVM-800 In-Car Video System

FirstVU HD Body Camera Continues to Gain Market Traction, Bolstered by VuLink Connectivity

LENEXA, KS -- (Marketwired) -- 12/03/13 -- Digital Ally, Inc. (NASDAQ: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced that the Company plans to commercially launch the newest addition to its family of in-car video systems, the DVM-800, during the month of December 2013.

The DVM-800 is a high-end digital in-car video system with five-year warranty protection that provides top-of-the-line capabilities at significant upfront and long-term savings. Starting at a price of less than $3,500, which is at least $1,500 less than comparable video systems, the DVM-800 is also available with a credit discount for customers that trade in their existing in-car video systems. The Advance Exchange warranty available with the DVM-800 also allows law enforcement agencies that wish to upgrade to a new model in the future to opt for Digital Ally to buy the system back under the Company's customer loyalty credit "guaranteed buyback program".

The DVM-800 In-Car Video System's base package features four cameras, dual camera simultaneous recording, wireless download, 720-pixel resolution that maximizes quality with storage space requirements, secure redundant recording to allow a continuous loop to be saved on the internal memory while individual incidents are saved on a removable SD card, a 2.4Ghz wireless microphone, an integrated 3.5-inch color monitor that is invisible when not in use and supports an automatic back-up camera display, GPS with interactive back office incident mapping, detailed vehicle and metadata, minimum 32GB of solid state memory, pre-event recording to capture events that occur before a recording is activated, automatic recording triggers, a "mark" button to tag important events and locations, internal battery backup and LED status indicators, among other features.

"We have been extremely pleased with the level of interest our DVM-800 has attracted among law enforcement agencies even prior to the official market launch," commented Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "The feature-rich DVM-800 was a hit at the International Association of Chiefs of Police Conference in Philadelphia in October, and we are delighted to announce the December commercial launch of the product. We have already received over $50,000 in pre-launch orders for the DVM-800 and expect to begin shipping units to customers before the end of 2013."

The Company also announced that its new FirstVU HD Body Camera continues to gain traction in the marketplace. In addition to orders previously received, Digital Ally recently obtained an order for 35 FirstVU HD units from a Tribal police department. Over 300 test and evaluation programs are now underway with law enforcement agencies, with active and completed test and evaluation projects representing potential sales estimated at over 6,000 units. Such test and evaluation programs do not necessarily translate into orders. Agencies must first be satisfied with the results of their tests and evaluations of the FirstVu HD product, and then follow requisition procedures, secure appropriate approvals, and ascertain that funding is available, which is never assured, before actually placing the orders. To date, the Company has sold over 450 FirstVU HD body cameras.

The versatility and productivity of the FirstVU HD is bolstered by the availability of the recently-introduced VuLink™, which allows the cooperative linking of Digital Ally's Vehicle-Mounted Video Systems and the FirstVU HD Body-Worn Video System. The VuLink is the first product on the market that enables body cameras and in-car video systems to be automatically or manually activated simultaneously. For example, when a vehicle's lights are activated, the body camera will automatically begin recording simultaneously with the vehicle's video system, thereby removing any distraction to the driver or the chance that the officer may forget to activate a recording manually.

Alternatively, if the officer is away from the vehicle when an incident occurs, VuLink will allow him/her to remotely start recordings on both systems with the FirstVU HD. The recordings can later be uploaded into the Company's VuVault software, which can link the body cam and in-car video recordings of the incident together.

"VuLink provides a truly effortless way to capture a vehicle video system's broad views of an incident around and inside the vehicle, which can include the individual wearing the body camera, as well as the personal perspective of the wearer, regardless of where the job takes them," added Ross.

About Digital Ally, Inc.

Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial applications. The Company's primary focus is digital video imaging and storage. For additional information, visit www.digitalallyinc.com.

The Company is headquartered in Lenexa, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY".

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 the Company will be able to improve its revenues and operating results in 2013 given the current economic environment; the Company's ability to deliver its newer product offerings as scheduled and have them perform as anticipated, including the DVM-800, FirstVU HD and VuLink; its ability to obtain the required components and products on a timely basis; its ability to maintain or expand its share of the markets in which it competes, including those outside the law enforcement industry; whether the initial interest shown in the DVM-800 product will translate into sales of the product; whether the results of the test and evaluation programs and interest shown in the FirstVU HD and VuLink products will translate into sales of the products, including the potential for orders exceeding 6,000 units; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; the effect of changing economic conditions; and changes in government regulations, tax rates and similar matters. 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, 2012 and quarterly report on Form 10-Q for the three and nine months ended September 30, 2013, 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
or via email at info@rjfalkner.com

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