Inquiries Regarding Digital Ally's FirstVU HD Body Camera Increase Dramatically During Past Week in Response to Civil Unrest in Ferguson, Missouri

Company's Patented VuLink Connectivity System Allows Law Enforcement Agencies to Gather and Record Evidence From Multiple Perspectives by Seamlessly Communicating Between In-Car Video Systems and Body Cameras

LENEXA, KS--( Aug 20, 2014) - 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 number of inquiries that it has received from law enforcement agencies interested in its FirstVU HD Officer-Worn Video System has increased dramatically since the national media began covering the civil unrest in Ferguson, Missouri.

"The civil unrest that has resulted in riots and looting of local businesses in Ferguson, Missouri during the past week has drawn national attention to the critical importance of audio and video documentation of evidence collection involving law enforcement officers," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "Police departments and other law enforcement agencies have long recognized the value of in-car video systems in documenting the activities of public safety officers and the persons they apprehend upon suspicion of traffic and other violations of the law. An audio/video recording often proves to be invaluable in court because it can answer critical questions regarding inappropriate actions by either the law enforcement officer or the person who may have broken the law."

"Oftentimes, however, officers must exit their vehicles in order to pursue and/or investigate an incident, and in-car video systems are relatively ineffective if such activity occurs outside the field of view of vehicle-mounted cameras. This has resulted in an emerging and rapidly growing market for officer-worn body cameras that can document events occurring within, in near proximity to, and up to several hundred feet away from the officers' vehicles. The FirstVU HD was introduced last year, and we believe it provides law enforcement agencies with the greatest value in body-worn audio/video recording devices at a highly competitive price."

"Since its market launch, the efficacy of the FirstVU HD has been complemented and expanded by 'live streaming' capabilities, cloud-based storage and access, and the recent introduction of our patented VuLink connectivity system, which allows body cameras and multiple in-car video systems to be automatically or manually activated simultaneously," added Ross. "Our recent receipt of an initial patent on the VuLink system has ideally positioned Digital Ally to offer the most flexible and comprehensive recording capabilities to large and small law enforcement agencies throughout the U.S. and in over 40 foreign countries. The unfortunate events in Ferguson, Missouri have clearly awakened the law enforcement community to the risks associated with inadequate audio/video documentation of virtually all activities that occur when officers on duty interact with the public. Some state governments are considering legislation that would require all law enforcement vehicles and officers to be equipped with some sort of audio/video recording capabilities."

If an officer is away from his or her vehicle when an incident occurs, VuLink will allow the officer to remotely start recordings on both the body camera and the in-car video system with the FirstVu HD. When the officer returns to headquarters, the recordings are uploaded into Digital Ally's proprietary VuVault software management system, which can link the evidence recorded by the body camera and the in-car video system together into a single, comprehensive and time-sequenced incident report. VuLink provides a truly effortless way to capture an in-car video's broad view of an incident, which can include the officer wearing the body camera, as well as the frequently crucial evidence as seen from the officer's perspective.

VuLink also enables the cooperative linking of multiple vehicle-mounted video cameras and the FirstVU HD body-worn camera system. 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.

When the FirstVU HD and VuLink are combined with the Company's flagship DVM-800 In-Car Video System, which was introduced to the market in December 2013 and accounted for 36% of Digital Ally's revenue in the second quarter of 2014, the Company believes it offers the most cost-effective audio/video evidence collection system available in the marketplace today. The DVM-800 features four cameras, dual-camera simultaneous recording, wireless download, 720-pixel resolution that maximizes quality within 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 2.4 Ghz 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.

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: the Company's ability to deliver its new product offerings, including the VuLink, FirstVU HD and DVM-800, as scheduled, obtain the required components and products on a timely basis, and have them perform as planned; its ability to maintain or expand its share of the markets in which it competes; whether there will be a commercial market, domestically and internationally, for one or more of its new products, including the VuLink, FirstVU HD and DVM-800; whether the interest shown in the Company's newer products will translate into sales of such products; whether the FirstVU HD and DVM-800 will continue to generate an increasing portion of its total sales; whether and the extent to which the new patent allowed by the US Patent Office for the VuLink will give the Company effective, enforceable protection of the intellectual property contained in the product in the marketplace; 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, 2013 and its quarterly report on Form 10-Q for the six months ended June 30, 2014, as filed with the Securities and Exchange Commission.