Digital Ally Receives Order for 300 New DVM-100 In-Car Video Systems From County in Florida

OVERLAND PARK, KS--(Marketwire - Sep 7, 2011) - 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 received the largest order, to date, for its new DVM-100 Digital In-Car Video System. The DVM-100 is designed specifically for those law enforcement agencies that need a high quality digital in-car video system but are budget-constrained due to reduced tax revenues at the state, county and/or municipal level. The Company has received an order for approximately 300 DVM-100 systems, valued at more than $500,000, from a county law enforcement agency in Florida. The name of the county has not been disclosed.

"We are very pleased that the sheriff's department in this county has elected to install our new DVM-100 Digital In-Car Video Systems in its fleet of law enforcement vehicles," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "The DVM-100, which was introduced to the market in June 2011, has generated high levels of interest from law enforcement departments throughout the U.S. and internationally, and we are currently in discussions regarding potential orders from numerous agencies. The Florida order is expected to ship in the quarter ending September 30, 2011."

"Many law enforcement agencies throughout the United States are facing budgetary constraints in the current soft economic environment, and we designed the DVM-100 for those agencies that can accept fewer features in exchange for a lower price. We believe the DVM-100, with a list price of $1,895, is one of the lowest-priced digital in-car video systems currently on the market that is compatible with the needs of law enforcement agencies. It allows budget-constrained and smaller law enforcement agencies to install in-car video systems that are consistent with their capital budgets, thereby addressing the many requests we have received for a lower-cost system."

Although the DVM-100 does not have all the capabilities of Digital Ally's feature-rich DVM-750 and DVM-500 Plus systems, it is easy to operate and offers high quality video with H.264 Codec at 30 frames per second, pre-event recording, covert mode, metadata, a remote wireless microphone, an integrated microphone for recording inside the vehicle, a USB or removable SD card for downloading, back office software, and a one-year parts and labor warranty.

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 Overland Park, 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 expand its share of the in-car video market in the domestic law enforcement community; whether there will be a commercial market, domestically and internationally, for one or more of its new products, including the DVM-100, and whether such products will perform as intended; whether the Company will be able to ship the Florida order for the DVM-100s in the third quarter of 2011; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers; 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, 2010 and its Form 10-Q for the six months ended June 30, 2011, as filed with the Securities and Exchange Commission.