Digital Ally Receives Initial DVM-250 Order From Kansas City Transportation Group

Company Targets 5,000+ Vehicles Operated by Affiliates of Veolia Transportation

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 it has received an initial order for 100 DVM-250 Video Event Recorders from Kansas City Transportation Group ("KCTG"). Operating under the names "Yellow Cab", "10/10 Taxi", and "Super Shuttle", KCTG manages a fleet of over 400 transportation vehicles in the Kansas City metropolitan area.

"Our immediate objective is to become the preferred provider of event recording solutions to the 400-plus vehicles that comprise KCTG's fleet in the Kansas City area, and thus we view this initial 100-unit order as a 'first step' in an expanding relationship with a regional leader in public and private transportation," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "The initial installation of 100 DVM-250 event recorders, along with the infrastructure to wirelessly move video for all of KCTG's vehicles, should be completed by January 1, 2014."

"Longer-term, we hope to expand our relationship to include Veolia Transportation affiliates in other North American cities. We currently have pilot programs underway in four U.S. cities for other Veolia divisions that involve fleets totaling well over 1,500 vehicles."

"We believe that KCTG understands the enhanced safety statistical value of having video event recorders in its vehicle fleet, but it wanted a solution that did not involve the payment of recurring monthly fees, which are charged by a number of our competitors," continued Ross. "We offered the customer a more cost-effective, turn-key solution that includes the in-vehicle recorders, associated infrastructure and video archiving software systems, while eliminating the need for monthly fees."

"We believe Veolia represents a 'game-changer' for our commercial group that affirms our business model for the event recorder market. The deployment of our DVM-250 within the Veolia organization represents a multi-year opportunity. It provides our Company with an 'anchor' customer that should allow us to invest additional resources to assure that our hardware and back office solutions for the commercial fleet market are state-of-the-art in performance and reliability. The Veolia opportunity could eventually represent the single largest systems deployment in Digital Ally's history," concluded 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; whether KCTG's initial order of DVM-250 units will result in additional orders from it; whether and the extent to which the Company will be able to obtain orders for the DVM-250 product from Veolia Transportation affiliates in the future; the Company's ability to deliver its newer product offerings as scheduled and have them perform as anticipated; 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 relating to the DVM-250 product; 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.