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Traffic Enforcement Press Release

July 31, 2007

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Digital Ally Receives First Large International Order for In-Car Video Systems


Management Envisions Significant Global Market Potential for Company’s Advanced Digital Video Surveillance Products

LEAWOOD, KS —Digital Ally, Inc. (OTCBB: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that it has received its largest international order, to date – a contract for the purchase of 50 DVM-500 Digital In-Car Video Systems Integrated into a Rearview Mirror from the Police Department of the State of Queretaro in Central Mexico. Working with its International Sales Agent for Mexico, Digital Ally was able to secure this order during the second quarter of 2007. The DVM-500 units have been delivered and are currently being installed in State Police vehicles in Queretaro. “We are very pleased to announce this order from our neighbors in Mexico, a country that we believe has significant potential for additional business in the future,” stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. “This represents our largest order, to date, from a customer outside the USA, and it illustrates the appeal of our DVM-500 within the international law enforcement community.”

“A key advantage of the DVM-500 involves the fact that it can be easily installed in any vehicle, whether a police cruiser in the United States or any of the makes and models of vehicles used by law enforcement agencies throughout the world. The DVM-500 simply replaces the factory installed rearview mirror. Installation is simple and fast. Our competitors’ units are limited to certain types of vehicles, and this possibly eliminates them from consideration in certain countries where police vehicles are much smaller and have no room for video storage devices in the trunk, dash, or console.”

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“The DVM-500’s solid state design, which eliminates all moving parts, represents another important competitive advantage when targeting international markets,” continued Ross. “Extreme temperatures, such as the heat in Mexico or the cold in Canada or Eastern Europe, do not degrade the performance of the DVM-500 in the least. In fact, one Canadian police agency has reported utilizing the DVM-500 at a temperature of minus 36 degrees Fahrenheit with no ill effects.”

“As we continue to expand our sales and marketing activities and our product line, we believe the international market will represent a growing percentage of our future sales,” concluded Ross.

For more information on the DVM-500, contact Digital Ally, Inc. at (800) 440-4947 or via email at sales@digitalallyinc.com.

About Digital Ally, Inc.

Digital Ally, Inc. is involved in the development, manufacturing and marketing of advanced technology products for law enforcement, homeland security and commercial security applications. The Company’s primary development focus involves the field of Digital Video Imaging and Storage. For additional information, visit www.digitalallyinc.com.

The Company is headquartered in Leawood, Kansas, and its shares are traded on the OTC Bulletin Board 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 raise sufficient capital to implement its business plan; its ability to have all of its product offerings perform as planned or advertised; whether there will be a commercial market for one or more of its products; its ability to commercialize its products and production processes, increase revenues significantly and achieve profitability; its ability to increase international sales; 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; its ability to obtain patent protection on any of its products and, if obtained, to defend such intellectual property rights; 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 always 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”, 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.