Digital Ally, Inc. Announces Receipt of Initial Purchase Orders Under Mexico Contract Totaling More Than $600,000

LENEXA, KS--(Marketwired - Oct 6, 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 the receipt of initial purchase orders under a contract from the Mexican Federal Police (FP) for the refurbishment of DVM-500 and DVM-500Plus In-Car Digital Video Systems, including the purchase of spare parts for such units. The FP, which is Digital Ally's largest single customer in terms of total DVMs deployed, has been purchasing DVM-500 and DVM-500Plus systems since 2007 and has over 4,500 DVMs in its fleet of law enforcement vehicles.

"The new administration elected in Mexico has determined that it wants to refurbish and upgrade its existing DVM systems, rather than buy new products at this time," observed Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "This illustrate the FP's confidence and reliance on our legacy systems."

"Our Company and the Mexican Federal Police have been discussing the scope and terms of the contract for over two years, which indicates the possible size and scope of the ultimate contract," continued Ross. "The FP has issued initial Purchase Orders under the contract, valued at over $600,000, that covers the first tranche of refurbishment, spare parts and related services to begin the refurbishment program. We anticipate that such program will involve most if not all of the 4,500 plus units in its fleet. We expect to receive Purchase Orders for additional tranches throughout the balance of 2014 and 2015. We believe that completion of the entire refurbishment program is a priority of the new Mexican administration and expect the entire project to be completed over the next 12-18 months."

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 will be able to obtain additional orders from the FP; whether the entire fleet of the FP's vehicles will ultimately be refurbished; and the uncertainty of the timing of the various stages of the refurbishment program and value of the orders; whether the Company can obtain its components and products on a timely basis; its ability to maintain or expand its share of the markets in which it competes, including those outside the law enforcement industry; 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 quarterly report on Form 10-Q for the three and six months ended June 30, 2014, as filed with the Securities and Exchange Commission.