Digital Ally, Inc. Awarded GSA Schedule 84 Contract

LENEXA, KS--(Feb 23, 2015) - 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 awarded GSA Status by the U.S. General Services Administration ("GSA"), the procurement arm of the federal government.

The Schedule 84 award encompasses federal, state and local government agencies that are purchasing total video solutions for law enforcement, security, facilities management, fire and rescue, clothing, marine craft, and emergency/disaster response requirements. The five-year contract allows federal, state and local governmental customers to efficiently purchase a wide range of Digital Ally video evidence collection and management products and services.

The GSA establishes long-term, government-wide contracts with commercial vendors in order to streamline and standardize the process of procuring products and services for the entire federal government. The GSA is the most widely used government contract vehicle, representing more than $32 billion in total contract volume in Fiscal 2014. Digital Ally's inclusion as a GSA Schedule 84 vendor enables all government agencies to obtain hardware and software products, support, training, and warranty services at approved pricing and with authorized license terms from a trusted vendor. In Fiscal 2014, more than $1.5 billion in total vendor contract volume with the federal government involved the Schedule 84 contracting process. 

Digital Ally has been pursuing this GSA designation for almost two years. The GSA Schedule 84 award represents the culmination of a rigorous process during which the GSA carefully evaluates prospective vendors to determine their proficiency and suitability for providing products and/or services to the federal government. This assessment covers an array of the vendor's capabilities, including organizational structure, performance history, customer satisfaction and other criteria. In awarding Digital Ally a GSA Schedule 84 contract, the federal government has determined that the Company is recognized as a preferred vendor and is fully authorized to conduct business directly with federal government agencies. 

"We are very pleased that our state-of-the-art video surveillance products and data storage services will now be available for purchase by all federal agencies under the Schedule 84 contract," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "By reducing procurement issues, the GSA contract allows Digital Ally and prospective government clients to focus on what matters most -- assessing and resolving critical evidence collection and IT challenges. We believe our GSA status will expedite the ability of government agencies to acquire our evidence gathering solutions and services, including body-worn cameras, in-car video systems, and cloud storage solutions, in a more efficient and timely manner."

Federal, state and local government agencies can obtain information about Digital Ally, Inc.'s GSA Schedule 84 contract services on the GSA Advantage website at www.gsaadvantage.gov (search for Contract Number GS-07F095CA) or by contacting Digital Ally, Inc. directly at (800) 440-4947. Digital Ally's services are offered under the Special Item Number ("SIN") 426-4S, Surveillance Systems. The Schedule 84 award is effective February 19, 2015 to February 19, 2020, with three 5-year extension options.

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's status as a GSA Schedule 84 vendor will result in sales of its products to federal, state and local government agencies and, if so, the volume, price and terms of such sales; whether the new GSA status will expedite sales to government agencies; whether the interest shown in the Company's newer products will translate into sales; 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 quarterly report on Form 10-Q for the three and nine months ended September 30, 2014, as filed with the Securities and Exchange Commission.