Digital Ally Receives Order From Nation's Largest Near-Airport Parking Company to Complete Deployment of 344 DVM-250Plus Video Event Recorders for Airport Shuttle Bus Fleet

LENEXA, KS--(Marketwire - Mar 26, 2013) -  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 DVM-250Plus Video Event Recorders.

The largest near-airport parking company in the United States ("the Customer") with 34 locations at 22 airports, has issued a purchase order for 259 DVM-250Plus video event recorders. This order and installation will complete the outfitting of the Customer's fleet of 344 shuttle buses. The Customer's shuttle buses pick up and drop off guests at their vehicles or valet lobbies and run continuously to and from airport terminals. Approximately 85 of the total 344 DVM-250Plus systems have been previously delivered to the Customer and installed in shuttle buses.

"This represents our largest single non-law-enforcement sale to date and is considered a major breakthrough in airport ground transportation, one of the key industries we have targeted," stated John Rumage, Director of Commercial Sales at Digital Ally, Inc. "Our Customer conducted an extensive search and review of self-contained video event recorders that do not require recurring monthly management fees. After evaluating commercial event recorders available from a number of companies, our Customer selected Digital Ally's DVM-250Plus to enhance the safety and functionality of its shuttle bus fleet at airports throughout the United States."

The DVM-250Plus is supported by Digital Ally's VuVault software, which is designed specifically to increase safety in commercial fleet vehicles. After thorough testing at its Dallas - Ft. Worth (DFW) location, our Customer cited the versatility and comprehensive nature of VuVault software as a major reason for selecting Digital Ally as the exclusive supplier of event recorders for its bus fleet. Multi-camera functionality will allow our Customer to capture video from four cameras -- road facing, driver facing, reverse and when the side doors of a bus are in operation. 

"We expect to ship the remaining 259 DVM-250Plus units to our Customer's locations throughout the United States before March 31^st," continued Rumage. "Digital Ally will also serve as our Customer's exclusive partner to supply video event recorders to its entire shuttle bus fleet. The two companies have agreed to collaborate on several projects in order to provide additional solutions that can meet our Customer's specific needs, including projects that can enhance vehicle fleet management, customer convenience and usage of our Customer's services."

"Our initial success of the DVM-250 series of commercial event recorders was in the ambulance market, and we are very pleased to announce Digital Ally's entry into the airport ground transportation market with the leader in that industry," added Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "We continue to pursue our goal of broadening our commercial sales channels to address additional market opportunities, including taxis and limousines, over-the-road trucks, and other vehicle fleet operators."

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 improve its revenues and operating results in 2013 given the current economic environment; whether it will be able to achieve improved production and other efficiencies to continue to increase its gross and operating margins; whether the federal economic stimulus funding for law enforcement agencies will have a positive impact on the Company's revenue; the Company's ability to deliver its new product offerings as scheduled, including its ability to obtain the required components and products on a timely basis, and have them perform as planned; its ability to maintain or expand its share of the markets for its products in which it competes and especially with the DVM-250 Video Event Recorder in the various commercial markets it has targeted; whether there will be a commercial market, domestically and internationally, for one or more of its new products; whether the Company's new products will continue to generate an increasing portion of its total sales; whether its reorganized domestic and international sales force will result in a rebound in revenues in and outside of the U.S.; whether the Company will be able to adapt its technology to new and different uses, including being able to introduce new products; 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, 2011 and quarterly report on Form 10-Q for the nine months ended September 30, 2012, as filed with the Securities and Exchange Commission.