Digital Ally Wins Major Legal Victory as the United States Court of Appeals for the Federal Circuit Affirms the Invalidity of Key Claims in Utility Associates' '556 Patent

LENEXA, KS--(Marketwired - Jan 17, 2017) -  Digital Ally, Inc. (NASDAQ: DGLY) (the "Company" or "Digital"), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, today announced that the United States Court of Appeals for the Federal Circuit issued a Judgment invalidating nearly all the claims asserted in U.S. Patent No. 6,831,556 ("the '556 Patent" or "Boykin Patent"), of which Utility Associates, Inc. ("Utility") is the owner. This Judgment affirms the finding of invalidity by the United States Patent and Trademark Office, Patent Trial and Appeal Board, that previously found these same claims invalid.

With its appeal, Utility sought to convince the Federal Circuit that the Patent Office had made an error. The Federal Circuit disagreed and rejected all of Utility's arguments. The Judgment fully affirmed the finding of the Patent Office, which found 23 of the 25 claims asserted in the '556 patent to be invalid. This Judgment will curtail or eliminate Utility's ability to continue threatening Digital and law enforcement agencies with patent infringement.

"This Judgment by the Federal Circuit is a huge legal victory for Digital and affirms what we have known all along -- Utility has been threatening Digital and our customers with an invalid patent. With the Federal Circuit's confirmation of the '556 patent's invalidity, we will continue to push for the recovery of damages caused by Utility in asserting an invalid patent through our lawsuit in the Federal District Court of Kansas," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc.

About Digital Ally, Inc. 

Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial applications. The Company is headquartered in Lenexa, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY". The Company's primary focus is digital video imaging and storage For additional news and information please visit www.digitalallyinc.com or follow us on Twitter @digitalallyinc and Facebook www.facebook.com/DigitalAllyInc

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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 ultimate outcome of the Company's litigation against Utility Associates, Inc.; competition from larger, more established companies with far greater economic and human resources; 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, 2015 and quarterly report on Form 10-Q for the three and nine months ended September 30, 2016, as filed with the Securities and Exchange Commission.