Digital Ally Asserts Claims Against Utility Associates Arising Out of False Press Release Claiming That Utility Had Sued Digital for Patent Infringement

LENEXA, KS--(Marketwired - Jun 12, 2014) - Digital Ally, Inc. (NASDAQ: DGLY) ("Digital" or the "Company"), the industry leader in law enforcement video technology, today announced that it has asserted new claims against competitor Utility Associates, Inc. ("Utility") arising out of Utility's publication of a false press release on June 4, 2014.

In its June 4, 2014 press release, Utility claimed to have filed a suit against Digital for "patent infringement" in the United States District Court for the Northern District of Georgia. Digital has determined that in fact Utility has not filed any kind of suit against Digital, whether in the United States District Court for the Northern District of Georgia or in any other District Court of the United States. As a result of Utility's issuance and publication of this false, untrue and deceptive press release, Digital has now amended its complaint in the action that Digital filed against Utility in the United States District Court for the District of Kansas on June 4, 2014 to include claims against Utility for false advertising in violation of Section 45 of the Lanham (Trademarks) Act.

"Digital requests actual and consequential damages, attorneys' fees and the issuance of an injunction prohibiting Utility from making further untrue statements in the future," 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'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 outcome of the Company's proceedings in the U.S. Patent and Trademark Office to annul the '556 Patent; whether and the extent to which the patents allowed by the US Patent Office will give the Company effective, enforceable protection of the intellectual property contained in its products in the marketplace; the outcomes of the Company's litigation with various parties, including Utility Associates; 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, 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.