Digital Receives VuLink(TM) Patent and Begins Shipping New Product to Law Enforcement Customers

DVM-800 Digital In-Car Video System and FirstVU HD Body Camera Continue to Gain Market Traction, Bolstered by VuLink Connectivity

LENEXA, KS-- Jul 10, 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 it has been notified by the U.S. Patent and Trademark Office ("USPTO") that its initial patent (No. 8,781,292) on its VuLink™ connectivity system has been approved and will issue on July 15, 2014. The Company also announced that it has begun shipping the new product to law enforcement customers.

"Digital Ally's new U.S. Patent No. 8,781,292 brings a new level of digital recording to the law enforcement community," stated Stanton Ross, the Company's Chief Executive Officer. "The new patent is directed to a controller that wirelessly synchronizes multiple recording devices, such as video cameras and microphones. When an operator starts one recording device, the controller instructs the other recording devices to also record, and synchronizes the recordings on the various devices. This provides audio/video surveillance from multiple vantage points in order to more fully capture an event, and it allows the operator to quickly and easily reassemble the various recording devices."

The VuLink allows the Company's Digital In-Car Video Systems and its FirstVU HD Body Camera to seamlessly work together, providing law enforcement with a fully integrated audio/video record of activities and/or evidence collection in the field, whether inside, in close proximity to, or up to 200 feet away from the officer's vehicle. 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 emergency 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 Body Camera. The recordings from both systems can later be linked together to provide a seamless record of the same incident from different perspectives utilizing the Company's VuVault software.

"VuLink provides a truly effortless way to capture an event from the perspective of the vehicle's video system, which can include the individual wearing the body camera, as well as from the personal perspective of the wearer, regardless of where the job takes the officer," stated Stanton Ross, Chief Executive Officer of Digital Ally, Inc.

"We have already received considerable interest in the VuLink from the law enforcement community," continued Ross. "Many police and other law enforcement agencies believe that body cameras will eventually be issued to all of their officers in the field, and the ability to communicate between vehicle camera systems and body cameras is essential to the safety of the officers and the integrity of audio/video evidence when introduced in court."

"We believe that Digital Ally's patent on the VuLink's ability to communicate between the Company's FirstVU HD and its in-car video systems will strengthen our ability to compete in the rapidly growing market for body cameras. We are also able to offer our customers a unique 'docking station' that can upload data from and recharge 12 FirstVU HD systems and separately recharge up to 12 FirstVU HD batteries (a total of 24 batteries) simultaneously, thereby reducing 'down time' and increasing the productivity of officers in the field."

"It is our belief that the availability of VuLink will further enhance the market appeal of our new DVM-800 Digital In-Car Video System, which was introduced to our law enforcement customers at the International Chiefs of Police Conference in Philadelphia last October and began shipping to customers in December 2013," added Ross. "During the first half of 2014, the DVM-800 accounted for approximately 47% of our Company's total systems shipped, and it is rapidly becoming our flagship in-car video system offering."

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 (1) have a defective system repaired or (2) upgrade to a new model in the future to receive a replacement unit before sending their defective or old system back to Digital Ally, thereby avoiding any "down time".

The DVM-800 In-Car Video System's base package features four cameras, intelligent 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.

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 three months ended March 31, 2014, as filed with the Securities and Exchange Commission.

For Additional Information, Please

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